Primrose Schools Franchise Costs, Fees & FDD

Year Business Began: 1982

Franchising Since: 1988

Headquarters: Atlanta, Georgia

Estimated Number of Units: 525

Franchise Description: The franchisor is Primrose School Franchising SPE, LLC. The franchisor offers franchises for the establishment, development, and operation of facilities operating under the “Primrose Schools” mark, which provide learning and educational oriented activities, including child care services, to children from six weeks to twelve years old. The franchisor currently offers the following five main options for developing a facility: a real estate development program, a build-to-suit developer lease program, a permanent lease program, an independent development program, and a site first development program.
Training Overview: Initial training currently includes (i) one day of orientation (New Franchise Owner Orientation) at the franchisor’s headquarters in Atlanta, Georgia; (ii) a self-guided exploratory study of the early childhood education industry which includes online courses, reading assignments, and other activities; (iii) three days of training at the franchisor’s headquarters or another location that it designates (School Opening Training); (iv) three days of on-site training conducted at an approved training facility in the franchisee’s market or another facility the franchisor designates; and (v) two to three days of additional training within six to twelve months of the school opening (School Excellence Training). The aforementioned training components may take up to 10 business days. The franchisor will also require the director to complete a training class (the Director Class). From time to time, the franchisor may, in its sole discretion, provide and may require one or more of the owners, directors, or other employees, to attend the national conference and to attend and successfully complete additional training programs, seminars, or workshops, which may be conducted at the times and the locations that the franchisor designates.

Territory Granted: When franchisees sign their Franchise Agreement, they will be assigned a development area within which their facility must be located. Franchisees will not receive an exclusive territory. However, under all programs other than the site first program, until the earlier of the second anniversary of the date franchisees signed their Franchise Agreement or the opening date (a) the franchisor and its affiliates will not establish, or license others to establish, other facilities (other than “Primrose on Premise” locations) in their development area, and (b) the franchisor will not have the right to unilaterally modify the development area, as long as the franchisee is in compliance with the Franchise Agreement. Under the site first program, franchisees will not have any exclusive or protected rights in the development area.

Obligations and Restrictions: Unless the franchisor approves otherwise in its sole discretion, the facility must at all times be under the direct on-premises supervision of an on-site owner, a director, and an assistant director or education coach. Franchisees must require all of their affiliates’ owners, partners, directors, officers, managers, members, and employees having access to the franchisor’s trade secrets or confidential information (including directors and multi-unit managers) to enter into confidentiality agreements with the franchisee to protect all confidential information. Franchisees may use their facility only to provide learning, recreational, and child care services and activities in accordance with the system, and to sell merchandise which is approved by the franchisor in advance.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the opening date for the facility. If franchisees have complied with the Franchise Agreement and meet other conditions, they may be able to obtain two successor terms of 10 years each.

Financial Assistance: In limited and unique circumstances under the build-to-suit program or permanent lease program and for all facilities developed under the site first program, the franchisor may provide a limited rent guarantee in favor of the franchisee’s third-party landlord specifically for the purposes of renting the real property, building, and improvements for the facility from such party. The franchisor may refer franchisees to a preferred lender who meets certain qualifications and has indicated an interest in providing financing to its franchisees. Otherwise, neither the franchisor nor any of its affiliates offer, either directly or indirectly, any financing arrangements.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee	$50,000	$80,000
Real Estate Fee or Real Estate Fee Deposit	$25,000	$25,000
Balance of Real Estate Fee (for permanent lease program or real estate development program)	$30,000	$45,000
Other Real Estate and Development Costs (for permanent lease program or real estate development program)	$1,388,400	$7,040,000
Security Deposit for Lease and Limited Rent Guarantee Fee (not for independent development program or real estate development program)	$15,000	$250,000
Utility Security Deposit	$10,000	$30,000
School Equipment and Supplies	$313,000	$383,000
Insurance	$5,000	$20,000
Initial Training and Opening Support Fee	$35,000	$35,000
Marketing, Advertising and Grand Opening	$40,000	$105,000
Transportation Vehicle	$900	$50,000
Licenses	$4,000	$7,000
Miscellaneous	$10,000	$45,000
Financing Cost	$55,000	$310,000
Additional Funds – 3 months	$180,000	$420,000
ESTIMATED TOTAL*	$742,900	$8,595,500

*Estimated initial investment range spans all franchise types. Please see FDD for details on each individual franchise option.

 
Other Fees

Type of Fee	Amount
Continuing Services and Royalty Fee	7% of gross revenues.
Primrose Brand Fund Fee	Currently, 2% of gross revenues, but may be increased by the franchisor at any time, but not more than a total of 3% of gross revenues.
Local Advertising	1% of gross revenues for preceding month or $1,000, whichever is greater.
Cooperative Contributions	1% of gross revenues for the previous month, unless members of the cooperative agree to increase it up to 2% of gross revenues.
Academic Curriculum Material License Fee	$450 - $480 per certain specified classrooms as specified annually, plus $1,400 - $1,600 per facility annually.
Cognia Accreditation	Currently, $1,100.
Late Fee	Interest at 1.5% per month, plus a 5% late fee on past due amounts, along with NSF charges.
Transfer Fee	For any control transfer, (i) franchisees must pay a transfer fee of 40% of the then-current initial fee for existing franchisees purchasing a new facility, plus all costs and expenses incurred by the franchisor and (ii) the transferee must pay a non-refundable initial fee equal to 60% of the then-current initial fee for existing franchisees purchasing a new facility. For a transfer that is not a control transfer, franchisees must pay the then-current transfer fee for transfers that do not result in a control transfer (currently, $3,250 to add a new owner and $1,250 for each owner removed).
Transfer Training and Support Fee	The transfer training and support fee is the same amount as the initial training and opening support fee. Currently, this amount is $35,000.
Successor Term Fee	10% of the then-current initial fee for existing franchisees purchasing a new facility.
Successor Term Training Fee	Currently, the successor term training fee is $5,000, which covers training for two owners.
Initial Training Fee for Subsequent or Replacement Trainees	Currently, $3,500 per trainee.
Additional Training Fee	The current hourly rate, plus all costs and expenses that the franchisor incurs (currently, $100 per hour for each trainer, not to exceed $750 per day for each trainer; subject to adjustment upon 30 days’ written notice).
Conference and Meeting Registration Fees	The current rate per attendee. Currently, the fee for meetings and conferences ranges from $500 to $1,260 per attendee, but it is subject to change.
Training Programs Fee	A fee that the franchisor may set for each training program, which will vary from program to program.
Additional Consulting Services Fees	A reasonable fee, currently up to $750 per day, plus travel and living expenses, including transportation, lodging and meals.
Temporary Management Fee	The current daily rate (currently, $750), plus all costs and expenses that the franchisor incurs.
Non-Compliance Fees	Up to $1,000 per single violation.
Remedial Expenses	110% of the franchisor and/or its affiliates’ actual costs and expenses related to remedying any deficiencies.
Follow-up Inspection Fee	The current daily rate (currently, $750 per representative per day), plus all costs and expenses that the franchisor and its affiliates incurs.
Insurance Procurement Fee	150% of the costs and expenses that the franchisor and its affiliates incur to procure and maintain insurance on the franchisee’s behalf.
Product, Service or Supplier Review Fee	The current daily rate (currently, $750), plus all costs and expenses that the franchisor incurs testing or reviewing such items or suppliers.
Additional Expenses	The current daily rate (currently, $750 per representative per day), plus all costs and expenses that the franchisor or its affiliates incur.
ACH Fees	Amount of the franchisor’s expenses.
Indemnification	The franchisor or its affiliate’s losses, costs, expenses (including attorneys’ fees), and damages.
Damages Upon Expiration or Termination	The franchisor’s damages, costs, and expenses (including, without limitation, lost future royalties and reasonable attorneys’ fees).
Facility Expansion Fee	$10,000
Relocation Fee	The franchisor or its affiliate’s actual costs and expenses, plus any other development fees that would be charged to develop a new facility.
Rent Guarantee Deposit	A refundable deposit equal to the balance of the rent guarantee amount.
Lease Review Fee	The franchisor or its affiliate’s actual costs and expenses, including attorneys’ fees plus the then-current per diem rate for lease consultations, which is currently $500 per hour.

The above information has been compiled from the FDD of Primrose Schools. Year of FDD: 2025.
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