Learning Express Toys & Gifts Franchise Costs, Fees & FDD

Year Business Began: 1987

Franchising Since: 1990

Headquarters: Devens, Massachusetts

Estimated Number of Units: 85

Franchise Description: Learning Express, Inc. is the franchisor. The franchisor franchises the right to operate a retail store featuring toys, books, games, personalized gifts, children’s accessories, and other related items under a Local Store Franchise Agreement. Learning Express stores also offer in-store activities and events, product demonstrations and customer-centric services such as a birthday gift registry, complimentary gift-wrapping, free personalization, VIP programs and fundraising programs.
Training Overview: The franchisor will provide a new store owner training program for franchisees and their designated management staff in the operation of the franchise. If franchisees employ a manager, the manager must attend new store owner training. The training will take place in or near Devens, Massachusetts, online and/or at a franchised Learning Express store. The training program is mandatory and franchisees and/or the designated manager must attend and complete the training to the franchisor’s satisfaction before opening the store. The new store owner training program currently consists of approximately four days or 30 hours. In addition, franchisees will be required to attend first year training during the year following their opening at the franchisor’s annual convention and toy fair (or similar industry event), if offered. Franchisees and designees from their management staff, at the franchisor’s discretion, may also be required by the franchisor to attend additional training online and/or at a Learning Express store.

Territory Granted: The Learning Express store franchise will be located within a specific geographic area defined by zip codes, streets, city, town, drive times, and natural boundaries and/or by a distance radius. As long as franchisees are not in default under the Franchise Agreement, they will be granted an exclusive territory and the franchisor will not place another Learning Express store franchise or operate a brick-and-mortar Learning Express store selling same or similar products or services under same or similar trademarks, service marks, or logos within the designated territory without the franchisee’s permission. With the franchisor’s permission, franchisees may open one or more temporary locations to the franchised store. No additional territory is granted for a temporary location.

Obligations and Restrictions: The franchised store must always be under direct full-time supervision of the franchisee or a fully trained manager. If the franchisee owns more than one Learning Express Toys franchise, the franchisee will be expected to oversee all of the stores, each of which must be managed by a full-time manager who has attended the Learning Express new owner training. Franchisees must use the franchised business solely for the operation of a Learning Express business and must maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the franchised business at its maximum capacity and efficiency. The franchisor requires franchisees to offer and sell those products that are specifically approved by the franchisor.

Term of Agreement and Renewal: The initial length of the franchise term is 10 years, unless terminated earlier. If franchisees meet the conditions, they may enter into two successive 10-year terms.

Financial Assistance: The franchisor does not offer any other direct or indirect financing to the local store franchisee. The franchisor may guarantee payment of the initial merchandise inventory to allow franchisees time to establish vendor credit. Except for this, the franchisor does not guarantee any loan, lease or obligation for any franchisee. If franchisees do secure a loan for the franchised business, they will be required to provide the franchisor with a copy of the loan documentation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Lease & Leasehold Improvements	$0	$50,000
Computer Equipment & Software	$5,116	$7,639
Signage	$5,000	$15,000
Furniture, Fixtures, and Equipment	$30,000	$45,000
Organizational and Training Costs	$1,500	$6,000
Opening Inventory	$100,000	$180,000
Grand Opening Advertising (minimum amount)	$7,500	$7,500
Initial Gift Card Program Setup Fees (plus shipping)	$375	$375
Insurance	$2,000	$6,000
Additional Funds (working capital)	$10,000	$30,000
ESTIMATED TOTAL (new franchise)	$201,491	$387,514

 
Other Fees

Type of Fee	Amount
Royalty Fee	Greater of 5% of gross receipts or $1,500 a month.
Payment by Credit Card	3.5% of invoice amount.
Advertising	1% of gross receipts, if/when advertising fund is established.
Additional Assistance	Travel, lodging and labor expenses.
Email, Social Media, Text and Loyalty Marketing Service	$25 - $400 monthly.
Audit Costs	Cost of examination.
Transfer Fee	$20,000
Hold Over	$100 per day franchise is operated past expiration date.
Costs and Attorney’s Fees	Varies.
Indemnification	Varies.
Late Payment (Interest)	Lesser of 3% per month or the maximum interest rate permitted by state law.
E-commerce Fees	$125 monthly.
Grand Opening Marketing	$7,500 minimum.
Direct Deal Program (optional)	Varies.

The above information has been compiled from the FDD of Learning Express Toys. Year of FDD: 2025.
Franchise Direct's Disclaimer