Ducklings Early Learning CenterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ducklings Early Learning Center franchise requires a total initial investment of $993K – $2.2M, including a $55K franchise fee and an ongoing 3.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.8M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $993K – $2.2M
- 66th pct Education
- Avg gross sales
- $1.8M
- 39th pct Education
- Royalty
- 3.0%
- 1st pct Education
- Units
- 14
- 31st pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 11 to 7 over 3 years. Investigate why operators are leaving.
19% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $993K – $2.2M including a $55K franchise fee, 3.0% ongoing royalty.
- Average unit revenue of $1.8M/year, with an estimated 19% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 26/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- J. Thompson Learning Centers, LLC
- CEO title
- Founder and Chief Executive Officer
- Jody Thompson
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- PA
- HQ
- 1414 Lenape Road, West Chester, Pennsylvania, 19382
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $1.6M
- vs $2.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate early childhood learning centers providing preschool and daycare services. Day-to-day operations include managing licensed childcare facilities, hiring/supervising educators, maintaining regulatory compliance, managing parent communications, and generating revenue through tuition fees.
- CEO
- Jody Thompson
- Founded
- 2015
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $250K | $360K |
| Equipment, build-out, other | $688K | $1.7M |
| Total initial investment | $993K | $2.2M |
Source: Ducklings Early Learning Center 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$342K
19.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $993K – $2.2M
- Near category avg vs category
- Liquid capital req'd
- $250K – $360K
- Below avg, review vs category
- Franchise fee
- $55K – $55K
- Near category avg vs category
- Royalty
- 3.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 4.0%
- vs 9–13% typical
- Payback period
- 5.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $750 |
| Training fee | $27K |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 4.0% of rev |
A 4.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $293K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 18.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Average and individual performance for 12 locations
- Sample size
- 12 units
- vs category median 14
- Range (low → high)
- $1.4M→$2.4M
- Cohort dispersion (min → max)
- Quartile band
- $1.5M→$2.1M
- Bottom 25% → top 25%
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Ducklings Early Learning Center Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (yr3)
- +37.5%
- Net unit change last year
- 3-yr CAGR
- +57.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 6
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage childcare franchise with unproven unit economics, aggressive expansion, and limited transparency on financial performance creates meaningful execution and profitability risk.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 26 / 100 rating
- 01MINORHigh initial investment ($993k-$2.15M) with moderate average net income ($292k) creates 3-4 year payback period at risk
- 02MINORRoyalty structure escalates from 3% to 6% after 90 days, potentially reducing profitability during critical growth phase
- 03MEDRapid expansion (37.5% YoY) with only 14 units suggests early-stage franchise system with limited operating history and unproven scalability
- 04MEDNo Item 19 financial performance data disclosed despite $1.8M average revenue claims; cannot independently verify unit economics
- 05MINORHigh variance between min/max investment ($1.16M spread) indicates inconsistent site costs or build-out standards across locations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 62 hrs
- On-the-job training
- 47 hrs
- Training location
- corporate headquarters in Pennsylvania and on-site at franchisee location
- Ongoing training
- Required
- Field support
- 48 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ducklings Early Learning Center · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ducklings Early Learning Center franchise?
The total investment to open a Ducklings Early Learning Center franchise ranges from $993K – $2.2M, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ducklings Early Learning Center franchise owners earn?
According to Item 19 of the Ducklings Early Learning Center FDD, the average gross sales per unit is $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ducklings Early Learning Center's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ducklings Early Learning Center (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Ducklings Early Learning Center franchise locations are there?
As of their most recent FDD filing, Ducklings Early Learning Center has 14 total units in the United States, including 11 franchised units and 3 company-owned units. 3 new units were opened in the latest reporting year.
Is Ducklings Early Learning Center a good franchise to buy?
FranchiseVerdict rates Ducklings Early Learning Center as a A-grade franchise with a risk score of 26 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.