Lightbridge Academy Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Lightbridge Academy is an early-education and childcare franchise serving infants through pre-K with a whole-child curriculum. Franchisees own and operate a center managing teachers, enrollment, and daily care.
FranchiseVerdict summary · 2026
A Lightbridge Academy franchise requires a total initial investment of $1.0M – $2.7M, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.5M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 41 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.0M – $2.7M
- 75th pct Education
- Avg gross sales
- $2.5M
- Combined outlet types33rd pct Education
- Royalty
- 7.0%
- 18th pct Education
- Units
- 81
- 62nd pct Education
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.0M – $2.7M including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.5M/year (median $2.6M) (combines different outlet types in one figure), with an estimated 11% cash-on-cash return (based on EBITDA / Average 380,317).
- RISKVerdict A (Strongest tier), verdict score 94/100 (higher is better). SBA loan charge-off rate of 0.0% across 41 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 24.0% CAGR over 3 years with 81 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Lightbridge Franchise Company, LLC
- Parent company
- Lightbridge Holdings Group, Inc.
- Predecessor
- Rainbow Academy (trade name used 2011-2014)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Gigi Schweikert
- Incorporated in
- NJ
- HQ
- 116 Grand Street, 2nd Floor, Iselin, New Jersey 08830
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $17.9M
- vs $15.5M prior year
Overview
About
- CEO
- Gigi Schweikert
- Headquarters
- NJ
- Founded
- 2010
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 181% above the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $150K | $300K |
| Equipment, build-out, other | $840K | $2.3M |
| Total initial investment | $1.0M | $2.7M |
Source: Lightbridge Academy 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $2.7M
- Bottom third — review vs category
- Liquid capital req'd
- $150K – $300K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 7.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 8.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $400 |
| Training fee | $40K |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 216% above the education norm.
Combines different outlet types in one figure
Source: FDD 2025 · Item 19
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
$354K
14.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.9 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $380K as EBITDA / Average 380,317. Our model estimates $354K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDA / Average 380,317 deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Lightbridge Academy unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Lightbridge Academy units return on equity?
Equity IRR · 5-yr
31.2%
3.89× MOIC
Year-1 DSCR
2.58×
EBITDA ÷ debt service
Equity required
$7.4M
on $17.7M purchase
Total debt
$10.3M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Combines different outlet types in one figure
- Avg gross sales
- $2.5M
- Per unit, per year
- Median gross sales
- $2.6M
- Avg ebitda / average 380,317
- $380K
- Reported as EBITDA / Average 380,317 in FDD Item 19
- Cash-on-cash
- 11.2%
- Based on EBITDA / Average 380,317 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and ebitda
- Sample size
- 68 outlets
- vs category median 17 · large
- Range (low → high)
- $1.1M→$4.3M
- Cohort dispersion (min → max)
- Quartile band
- $1.7M→$3.2M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.5M/year in gross sales. Revenue-to-investment ratio: 1.4x. Combines different outlet types in one figure.
Fee burden
Total ongoing fee load of 9.0% — below the Education average of 10.6%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 24.0% CAGR over 3 years across 81 units — operators are staying and new ones are joining.
Multi-unit rate
Only 17% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Lightbridge Academy Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 81
- Opened
- 7
- 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
- 19
- Corporate units in the system
- % franchised
- 77%
- vs corporate-owned
- Multi-unit owners
- 16.7%
- Net growth (3-yr)
- +24.0%
- Net unit change over 3 years
- 3-yr CAGR
- +24.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 41
- Loan volume
- $62.2M
- Median loan
- $975K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- brand beats franchise avg ↓
- Jobs supported
- 1,473
- 2.4 per loan
- Lender concentration
- 29%
- top lender's share
Borrower mix: 75% went to startups / new businesses, 25% to established operators
Franchise vs independent — in child day care services, franchised businesses charge off at 5.3% vs 13.0% for independents — franchising is associated with 59% lower SBA default risk in this category.
Vintage analysis
Lightbridge Academy charge-off rate by loan vintage
Top lenders financing Lightbridge Academy franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Lightbridge Academy's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 41 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Lightbridge Academy presents moderate-to-cautionary risk: solid fundamentals (no litigation, positive net income, growing units) are offset by unprotected territory, wide investment variance, modest margins, and labor-intensive business model requiring flawless execution.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 94 / 100 verdict
- 01MINORNo territory protection exposes franchisees to direct competition from other Lightbridge locations
- 02MINORModest net income ($411K average) yields only 15.8% net margin on average revenue, resulting in ~3.9-year payback period before ROI
- 03MINOR12.7% YoY unit growth is healthy but modest for a franchisor, suggesting market saturation or franchisee acquisition challenges
- 04MINORHigh royalty rate (7%) combined with unprotected territory creates pressure on franchisee profitability in competitive markets
- 05MINORChildcare is labor-intensive with thin margins; operational execution risk is high and turnover-dependent
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Middlesex County, New Jersey (mediation pre-suit; litigation in NJ state or federal court) |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 87 hrs
- On-the-job training
- 90 hrs
- Training location
- LFC Home Office, Iselin, New Jersey; virtual classroom; franchisee's center (on-site opening support)
- Ongoing training
- Required
- Time to open
- 38 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
56 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Lightbridge Academy · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lightbridge Academy franchise?
The total investment to open a Lightbridge Academy franchise ranges from $1.0M – $2.7M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lightbridge Academy franchise owners earn?
According to Item 19 of the Lightbridge Academy FDD, the average gross sales per unit is $2.5M. The median is $2.6M. Important context: Combines different outlet types in one figure. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Lightbridge Academy FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Lightbridge Academy FDD and qualifies whose outlets they describe.
What is Lightbridge Academy's franchise failure rate?
Based on SBA 7(a) loan data, Lightbridge Academy has a charge-off rate of 0.0% across 41 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Lightbridge Academy franchise locations are there?
As of their most recent FDD filing, Lightbridge Academy has 81 total units in the United States, including 62 franchised units and 19 company-owned units. 7 new units were opened in the latest reporting year.
Is Lightbridge Academy a good franchise to buy?
FranchiseVerdict rates Lightbridge Academy as a A-grade franchise with a verdict score of 94 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Lightbridge Academy, you can request corrections or provide updated information.
Other Education franchises
Compare similar franchise opportunities in the Education category
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.