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Description
Investment Icon

What Are the Initial Investment Requirements for a Primrose K Schools Franchise?

To open a Primrose K Schools franchise, you will need to prepare for a significant initial investment ranging from $742,900 to $8,595,000. This includes an initial franchise fee of $80,000. Additionally, you should have at least $100,000 in cash available and a net worth between $1,000,000 and $3,000,000. Understanding these financial commitments is crucial to ensure you are financially equipped to start your franchise journey.

Fees Icon

What Are the Ongoing Fees Associated with a Primrose K Schools Franchise?

As a franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your gross revenue and a marketing fee of 4%. These fees contribute to the overall support and marketing efforts of the Primrose brand, helping to drive customer engagement and brand awareness. It's important to factor these costs into your financial planning to maintain profitability.

Revenue Icon

What Is the Average Revenue Potential for a Primrose K Schools Franchise?

The average annual revenue for a Primrose K Schools franchise unit is approximately $2,703,968, with a median revenue of $2,599,851. The revenue can vary significantly, with the lowest reported annual revenue at $737,194 and the highest reaching $6,534,912. This diverse financial outlook highlights the potential for strong profitability, depending on location and operational effectiveness.

Breakeven Icon

How Quickly Can You Expect to Break Even with a Primrose K Schools Franchise?

Franchisees can anticipate a breakeven period of about 24 months. With an investment payback period of just 12 months, this indicates a strong potential for financial recovery and profitability within a relatively short timeframe. Understanding these timelines can help you manage expectations and plan for the future of your franchise.

Primrose K Schools Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$1,000,000 - $3,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$80,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

7%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

4%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

24 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$742,900 - $8,595,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$100,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$2,635,346
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$2,599,851
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$6,534,912
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$737,194
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Children’s Franchises
Category icon A more specific division within the broader industry.

i Category:

Childcare
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Jo Kirchner
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

3200 Windy Hill Road SE, Suite 1200E, Atlanta, Georgia 30339
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2017
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Roark Capital

Primrose K Schools Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

505
The number of locations owned by independent franchisees.

Franchised Units i

505
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 445 465 483
Net Change YoY 20 18
Franchised Units 445 465 483
Net Change YoY 20 18
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Investment Overview

The Primrose Schools franchise offers a unique opportunity for investors with a range of initial investment costs between $742,900 and $8,595,000. The franchise fee is set at $80,000, with ongoing royalty and marketing fees of 7% and 4% of gross revenue, respectively. Prospective franchisees should be prepared with a minimum cash requirement of $100,000 and a net worth between $1,000,000 and $3,000,000 to qualify for ownership.

Potential About

Revenue Potential

Primrose Schools franchises demonstrate strong revenue potential, with average annual revenue per unit reported at $2,703,968. The median annual revenue stands at $2,599,851, while the range of revenue varies significantly, from a low of $737,194 to a high of $6,534,912. This financial performance indicates a robust market presence and demand for quality early childhood education.

Metrics About

Franchise Growth

The Primrose Schools franchise has shown consistent growth over the years, increasing from 445 units in 2021 to 483 units in 2023. This upward trajectory highlights the brand's appeal and the effectiveness of its franchise model, making it an attractive option for potential investors seeking a stable and expanding business opportunity in the education sector.

Fees About

Operating Expenses

Operating expenses for Primrose Schools are substantial, amounting to approximately $2,258,188 annually, which represents 83.5% of total revenue. Key expenses include payroll, taxes, and various operational costs. Understanding these expenses is crucial for franchisees to effectively manage their financial performance and optimize profitability.

Breakeven About

Breakeven and Payback

Franchisees can expect to reach breakeven within approximately 24 months of operation. Moreover, the investment payback period is notably favorable at around 12 months. These metrics provide a clear indication of the financial viability and potential return on investment for aspiring franchise owners.

Units About

Brand Mission

Primrose Schools is dedicated to providing a nurturing and educational environment for young children, emphasizing a balanced approach to learning and development. The brand's mission focuses on fostering a love of learning through innovative programs, skilled educators, and a commitment to the well-being of each child, positioning Primrose as a leader in early childhood education.

Frequently Asked Questions

The initial investment for a Primrose Schools franchise ranges from approximately $742,900 to $8,595,000, which includes the franchise fee and other startup costs.