The Learning Experience Franchise Costs, Fees & FDD

Year Business Began: 1979

Franchising Since: 2003

Headquarters: Deerfield Beach, Florida

Estimated Number of Units: 435

Franchise Description: The franchisor is The Learning Experience Systems LLC. Franchisees operate a childcare center business with the systems, trademarks, procedures and curriculum that are licensed by the franchisor.
Training Overview: Before opening their center, franchisees must complete the franchisee training program (FTP) to the franchisor’s satisfaction. The FTP consists of TLE Foundations Training, TLE Essentials Training, Center Operations Training, and Opening Training. Some TLE Foundations Training sessions may be conducted virtually, some may be held live and in person, while others are taken as e-learning courses. Franchisees must attend up to ten business days of TLE Essentials Training at the franchisor’s corporate worldwide headquarters in Deerfield Beach, Florida. The same person who completes TLE Essentials Training will be required to attend up to five business days of “Center Operations” training at a Center that the franchisor designates. The final training component, “Opening Training”, will be conducted virtually and in the franchisee’s center. The franchisor may periodically offer local and regional continuing education/training programs on matters related to the operation or promotion of the center.

Territory Granted: Franchisees will have the license to operate a center within their protected territory. The protected territory will be a circle having a diameter of 2.5 miles (1.25 miles from all exterior walls) from a central point, except for “cities” which the franchisor defines as urban areas with a population of excess of 500,000 people. The protected territory of a single franchise in cities will be a smaller defined geographic area that the franchisor establishes, in its sole discretion. Except as described by the franchisor in the FDD, the franchisor agrees to not establish or operate or permit an affiliate or franchisee to establish or operate a center at any location within the protected territory.

Obligations and Restrictions: The center director must devote all his or her productive time (at least 40 hours per week) and effort to the personal supervision of the center. The center director must meet all legal requirements to serve in that capacity. The franchisor does not require that the franchisee personally serve as center director. Franchisees must offer and sell all of the approved products and services that the franchisor designates as required. Franchisees may offer and sell approved products and services the franchisor designates as optional. Franchisees must offer and sell only those products and services that the franchisor has authorized them to provide. Franchisees may not sell anything else.

Term of Agreement and Renewal: The length of the initial franchise term is the greater of 15 years or the initial term of the lease for the center premises, but no more than 20 years. If franchisees meet the conditions, they can add three additional five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation, except that if the franchisor assigns the lease for the franchisee’s center to the franchisee, the franchisee’s landlord may insist that the franchisor provide a limited guaranty. A military veteran’s discount is available to veterans who have received a discharge (other than dishonorable) as well as any active-duty personnel.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$60,000	$60,000
SDSC Fee (only for site development)	$250,000	$302,500
Lease Security Deposits	$15,000	$150,000
Insurance Premiums	$3,500	$18,000
Assignor Security Deposit	$20,000	$50,000
Organizational Expenses	$1,000	$2,500
Software Service Fee for 6 Months ($525/month)	$3,150	$3,150
Pre-Paid Rent (for up to 3 months)	$0	$150,000
Opening Marketing Efforts	$40,000	$55,000
Initial Computer Set-Up Fee	$2,999	$2,999
Payments/ Security Deposits to Utility Provider (gas, electric, water, sewer, telephone and internet service)	$500	$5,000
Local and State Licenses and Permits	$400	$2,000
Travel/ Lodging for Staff Training	$2,500	$15,000
Initial Employee Salaries – 6 Months	$100,000	$175,000
Curriculum	$500	$3,850
Food/ Paper/ Expendables	$1,250	$3,500
Miscellaneous	$0	$70,000
Additional Funds (operating expenses for 6 months)	$275,000	$400,000
L.E.A.P. Interactive Setup Fee (per whiteboard)	$5,000	$8,800
ESTIMATED TOTAL*	$780,799	$1,477,299

*For centers with a SDSC Addenda, see FDD for details.

 
Other Fees

Type of Fee	Amount
Royalties	7% of the center’s gross revenue, which includes all revenue related to the center.
Renewal Expenses	Varies.
Brand Awareness Fund	Currently, 1% of gross revenue. The franchisor has the right to increase the minimum payment up to 2.5% of gross revenue.
Marketing Materials	The franchisor’s costs plus any licensing fee (up to 18%), shipping, handling, and storage costs.
Audit Fee	Varies.
Lease Administration Fee	$1.80 per square foot per year or 8% of annual base rent, whichever is greater.
Ongoing Purchases of Proprietary Products	Full purchase price plus 18% licensing fee and the actual cost of shipping, freight, insurance, and tax, which the franchisor currently estimates to $5,000 to $10,000 per year.
Software Service Fee	$525 per month.
Interest on Late Payments	18% per year (but not more than the highest rate (if any) that applies to the franchisee under law).
Returned Check Fee	The greater of (a) $100; or (b) 5% of the amount of the check plus the franchisor’s actual bank charges.
Late Fee for Delayed Payment	10%
Late Fee for Delayed Filing of Required Reports	$50 for each occurrence, plus an additional fine of $30 per day each day past the deadline the report is not submitted. (For corporate contracts: 5% of each enrolled corporate child’s tuition per day the child is enrolled.)
Bank Fees	Reasonable and customary back ACH charges.
Training Fee	$1,500 for each additional person to be trained.
On-Site Training Program	$1,500 per week.
Refresher Non-Attendance Fee	$500
Transfer Fee	$25,000
Securities Offering	The greater of (a) $25,000; or (b) the franchisor’s reasonable costs and expenses incurred in reviewing any additional securities documents.
Alternative Supplier Inspection	The franchisor’s expenses.
Insurance Policy Review Fee	$1,500
Insurance - Reimbursement of Costs	Amount of premiums and the franchisor’s reasonable expenses plus 18% of these costs.
Indemnification	Varies.
Costs and Attorneys’ Fees	Will vary under circumstances.
Fee for Non-Attendance at Convention	The greater of (i) $1,500, or (ii) 80% of the cost charged to franchisees to attend the convention.
Management Fee	The franchisor’s out-of-pocket costs, plus 20% of the franchisee’s center’s profits, plus the greater of (a) 4% of the center’s gross revenue or (b) $2,500.
L.E.A.P. Interactive Monthly Fee	$249 service fee, plus $2.58 to $6.17 per child per month for L.E.A.P. Interactive curriculum (printed material costs).
Lost Future Royalties	Present value of the average monthly royalties the franchisee was obligated to pay during the 12-month period immediately preceding the month the Franchise Agreement was terminated multiplied by the number of months remaining the initial term.
Liquidated Damages	See FDD.
Bookkeeping Service Fee for Managed Centers	$250
Late Data Fee	$150 per day.

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