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How Much Does a Primrose Schools Franchise Cost?
The education sector continues to thrive despite uncooperative circumstances. This makes education organizations an excellent business opportunity. So, if you’re looking into franchising an education-related venture, Primrose Schools is a first-rate choice. It’s one of the leading private preschool organizations that offers a purposeful curriculum for early education and infant care. Therefore, we’ll break down the Primrose Schools franchise cost, training, territory, and all conditions for interested franchisees.
Company Overview
Owning a Primrose Schools franchise entails the development and establishment of early education activities and child care services. Since 1982, Primrose Schools have proven their excellence in offering quality education that revolves around consistent experience and safety for both families and children.
The organization is an accredited private preschool that partners with other foundations to give and receive support. This not-for-profit organization garners funding from both the national support center and their schools to continue what they love doing best.
Primrose Schools promises an innovative educational system that fosters relationships and offers a brighter future for the younger generation. It wasn’t until 1988 that Primrose Schools began offering franchise opportunities to willing and like-minded individuals to disseminate their advocacies. The community has expanded to over 375 schools in more than 29 states, catering to over 54,000 families and children.
Aside from being the first educational child care organization to get accreditation from CITA (Commission on International and Trans-Regional Accreditation), Entrepreneur also ranks Primrose Schools as the number one child care franchise on the Franchise 500 list.
But before we get to know what the Primrose Schools franchise cost is, here are other pertinent information about the franchise.
Training Summary
Primrose Schools Franchising SPE, LLC is the franchisor. The organization has the right to decline franchise operations if franchisees fail to complete and pass the training requirements.
Moreover, all franchisees must undergo all necessary training programs before moving onto the franchising process’s next stage. So, here is the summary of the Primrose Schools training:
- Firstly, franchisees must attend the one-day New Franchise Owner Orientation training, which will be held at the Primrose Schools headquarters in Atlanta, Georgia.
- The franchisor will then provide an exploratory study guideline for early education, which will entail reading assignments, online lessons, and more.
- The franchisees will attend the School Opening Training, which will run for three days at the Primrose Schools headquarters or another chosen location by the franchisor
- Franchisees must then participate in the week-long on-site training at a facility approved by the franchisor
- The franchisees will then undergo the School Excellence Training, which lasts three days within a six to 12-month period
- The franchisor may also require additional reading assignments, webinars, and online courses as part of the initial training program
- Finally, the franchisor may require the franchisee to attend the national meetings as additional complementary training
Franchise Territory
The franchisor doesn’t grant exclusive territory to all Primrose Schools franchisees. However, the Franchise Agreement does include territory conditions for franchisees that will commence until the second anniversary of the contract’s date.
Another key point to remember is the franchisor doesn’t allow other franchisees or affiliates to establish or develop other facilities save for the Primrose on Premise area in the chosen development location.
Additionally, the franchisees can rest assured that the franchisor will not modify the area if the franchisee is still within its Franchise Agreement term. In case another facility opens, the development location will be nullified.
Franchise Obligations and Conditions
The franchisee must ensure that they supervise the facility at all times. If the owner is unavailable, they must let a director or assistant director manage the facility unless the franchisor approves otherwise.
The franchisees must also implement a confidentiality policy in which all directors, managers, and employees must comply.
The franchisees or owners must also sign a performance and payment guarantee. Hence, this entails the owner or franchisee to non-compete provisions and confidentiality policies under the Franchise Agreement.
Finally, the franchisees should operate the facility while offering child care services and early education to families and children. Not to mention, the franchisee must only sell products that are approved by the franchisor.
Franchise Term and Renewal
The initial franchise term is 10 years. But, the franchisee may be eligible to renew for two 10-year successor terms if they adhere to the Franchise Agreement requirements.
Franchise Financial Aid
The franchisor doesn’t guarantee indirect and direct financing to the franchisee. However, the franchisor may offer a lease program to cover property rent under certain limitations. Also, the franchisor may suggest other financing companies to provide financial assistance to franchisees.
Did You Know?
Here are some interesting facts you should know about Primrose Schools:
- The company hit a groundbreaking record of opening 24 new Primrose Schools locations in a year!
- Primrose Schools is the first early education company that integrates the use of wireless laptops for both students and teachers
- The not-for-profit organization has donated around $3.5 million to charities such as Reach Out and Read, Save the Children, Children’s Miracle Network, Ronald McDonald Charities, Zero to Three, and more.
Primrose Schools Franchise Cost
Your Investment:
Here is the total breakdown of the Primrose Schools franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Initial Fee | $50,000 | $80,000 |
| Real Estate Fee for build-to-suit or independent development program | $25,000 | $25,000 |
| Real Estate Fee Deposit for permanent lease program | $20,000 | $20,000 |
| Balance of Real Estate Fee for permanent lease program | $35,000 | $50,000 |
| Other Real Estate and Development Costs for permanent lease or independent development program | $2,288,000 | $5,337,000 |
| Security Deposit for Lease and Limited Rent Guarantee Fee not for independent development program | $15,000 | $125,000 |
| Utility Security Deposit | $10,000 | $30,000 |
| School Equipment and Supplies | $222,000 | $340,000 |
| Insurance | $5,000 | $10,000 |
| Initial Training and Opening Support Fee | $35,000 | $35,000 |
| Marketing, Advertising and Grand Opening | $40,000 | $45,000 |
| Transportation Vehicle | $900 | $42,000 |
| Licenses | $4,000 | $7,000 |
| Miscellaneous | $10,000 | $45,000 |
| Financing Cost | $55,000 | $233,000 |
| Additional Funds – 3 months | $180,000 | $420,000 |
| ESTIMATED TOTAL for build-to-suit program | $651,900 | $1,279,000 |
| ESTIMATED TOTAL for permanent lease program | $3,146,900 | $4,560,700 |
| ESTIMATED TOTAL for independent development program | $4,527,400 | $6,726,000 |
Other Costs:
| Type of Fee | Amount |
|---|---|
| Continuing Services and Royalty Fee | 7% of gross revenues. |
| Primrose Brand Fund Fee | 2% of gross revenues. However, it may also be increased by the franchisor, but not more than a total of 3% of gross revenues. |
| Local Advertising | 1% of gross revenues for preceding month or $1,000. Or whichever is greater. |
| Cooperative Contributions | It’s up to 1% of gross revenues for the previous month, unless otherwise agreed by members of the cooperative. |
| Cognia Accreditation | $900. |
| Late Fee | Interest at 1.5% per month. There’s also a 5% late fee on past due amounts, along with NSF charges. |
| Transfer Fee | For any control transfer, franchisees must pay a 40% transfer fee of the then-current initial fee for existing franchises purchasing a new facility. This also includes costs and expenses incurred by the franchise. Moreover, the transferee should pay a non-refundable initial fee equal to 60% of the then-current initial fee for existing franchisees purchasing a new facility. But, if it’s not a control transfer, franchisees should pay the then-current transfer fee for transfers that don’t result in a control transfer. It’s also $3,250 to add a new owner and $1,250 to remove one. |
| Transfer Training Fee | Same amount as the initial training and opening support fee. At this time, the amount is $35,000. |
| Successor Term Fee | It’s 10% of the then-current initial fee for existing franchisees purchasing a new facility. |
| Successor Term Training Fee | The successor term training fee is $5,000. It also covers training for two owners. |
| Additional Training Fee | The current hourly rate. It also includes all costs and expenses that the franchisor incurs. Furthermore, it’s $100 per hour for each trainer, not to exceed $750 per day for each trainer. It’s also subject to adjustment upon 30 days’ written notice. |
| National Conference Registration Fee | The current rate per attendee. The fee is $550 per attendee at the National Conference if the registration is made by a certain deadline, and $750 per attendee thereafter, but it is subject to change. |
| Training Programs Fee | A fee that the franchisor may set for each training program. It also varies from program to program. |
| Additional Consulting Services Fees | A reasonable fee, up to $750 daily. It also includes travel and living expenses, including transportation, lodging and meals. |
| Temporary Management Fee | The current daily rate = $750. It also includes all costs and expenses that the franchisor incurs. |
| Remedial Expenses | All costs and expenses that the franchisor incurs. |
| Follow-up Inspection Fee | All costs and expenses that the franchisor incurs. |
| Product, Service or Supplier Review Fee | The current daily rate = $750. It also includes all costs and expenses that the franchisor incurs testing or reviewing such items or suppliers. |
| ACH Fees | Amount of the franchisor’s expenses. |
| Indemnification | The franchisor’s losses, costs, expenses. This also includes attorneys’ fees, and damages. |
| Damages Upon Expiration or Termination | The franchisor’s damages, costs, and expenses. It also includes without limitation, lost future royalties and reasonable attorneys’ fees. |
| Facility Expansion Fee | At this time, it’s $10,000 |
| Relocation Fee | The franchisor’s actual costs and expenses. This also includes any other development fees that would be charged to develop a new facility as well. |
| Lease Review Fee | The franchisor’s actual costs and expenses. This also includes attorneys’ fees. |
| Academic Curriculum Material License Fee | $450 – $480 per certain specified classrooms as specified annually. It’s also $1,400 – $1,600 per school annually. |
So, if you’re interested in opening a Primrose Schools franchise, visit their website for more information. In addition, for other franchise information, you can check more resources here at Franchise How!