Primrose SchoolsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Primrose Schools franchise requires a total initial investment of $743K – $8.6M, including a $80K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.7M[2]. SBA 7(a) loans show a 1.8% charge-off rate across 845 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $743K – $8.6M
- 61st pct Education
- Avg gross sales
- $2.7M
- 44th pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 525
- 69th pct Education
- SBA default
- 1.8%
- system-wide median varies by category
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
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 1.8% of 845 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $743K – $8.6M including a $80K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $2.7M/year (median $2.7M), with an estimated 11% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 20/100. SBA loan charge-off rate of 1.8% across 845 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Primrose School Franchising SPE, LLC
- Parent company
- Primrose Holding Corporation
- CEO title
- Chief Executive Officer and Manager
- Mary Jo Kirchner
- CEO experience
- 1999 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 3200 Windy Hill Road SE, Suite 1200E, Atlanta, GA 30339
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate full-service early childhood education centers (preschools) serving ages 6 weeks through pre-K, managing daily curriculum delivery, staff hiring/training, parent communication, facility operations, and enrollment marketing. Revenue derives from tuition fees with centers typically operating year-round with extended hours.
- CEO
- Mary Jo Kirchner
- Headquarters
- GA
- Founded
- 2019
- FDD year
- 2025
- States available
- 35
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (Real Estate Development Program) | $50K | $80K | |
| Initial Fee (Build-to-Suit Program) | $50K | $80K | |
| Initial Fee (Permanent Lease Program) | $50K | $80K | |
| Real Estate Fee Deposit | $25K | $25K | |
| Balance of Real Estate Fee | $30K | $45K | |
| Initial Fee (Independent Development Program) | $50K | $80K | |
| Miscellaneous | $10K | $45K | |
| Financing Cost | $258K | $310K | |
| Additional Funds - 3 months | $180K | $420K | |
| Initial Fee (Site First Program) | $50K | $80K | |
| Real Estate Fee | $25K | $25K | |
| Security Deposit for Lease and Limited Rent Guarantee Fee | $125K | $150K | |
| Other Real Estate and Development Costs | $10K | $25K | |
| Utility Security Deposits | $10K | $30K | |
| School Equipment and Supplies | $313K | $383K | |
| Insurance | $5K | $20K | |
| Initial Training Fee | $35K | $35K | |
| Marketing, Advertising and Grand Opening | $40K | $105K | |
| Transportation Vehicle | $900 | $50K | |
| Licenses | $4K | $7K | |
| Total initial investment | $1.3M | $2.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$382K
14.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
13.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $743K – $8.6M
- Near category avg vs category
- Liquid capital req'd
- $180K – $420K
- Below avg, review vs category
- Franchise fee
- $50K – $80K
- Near category avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 9.2 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 |
| Training fee | $35K |
| Transfer fee | $32K |
| Renewal fee | $8K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $2.7M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg p&l bottom line
- $509K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 10.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 499 units
- vs category median 14 · large
- Range (low → high)
- $618K→$6.7M
- Cohort dispersion (min → max)
- Quartile band
- $1.8M→$3.8M
- Bottom 25% → top 25%
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How Primrose Schools Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 525
- Opened
- 21
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +4.0%
- Net unit change last year
- 3-yr CAGR
- +8.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 30
- Transfer rate
- 5.7%
- Owners selling to other franchisees
- Continuity rate
- 99.8%
- Units that stayed open
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 845
- Loan volume
- $1.6B
- Median loan
- $2.7M
- 50th percentile
- Charge-off rate
- 1.8%
- 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
- 71
- Defaults
- 8
Vintage analysis
Primrose Schools charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Primrose Schools'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 15 states
- Startup risk premium and job creation velocity
- 16-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 1.8% charge-off rate across 845 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Primrose Schools presents moderate-to-cautious risk due to undisclosed financial performance data, litigation history affecting the franchise system, slow growth trajectory, and high capital/ongoing fee requirements in a competitive childcare sector.
Litigation (Item 3)
Three cases disclosed: (1) Primula Management, LLC v. Primrose School Franchising Company LLC (pending, filed 3/3/2025, U.S. District Court Southern District of New York) - trade secret misappropriation, breach of contract, tortious interference, unjust enrichment claims; Franchisor initially named but removed from Amended Complaint filed 4/11/2025; Predecessor has Motion to Dismiss pending as of 4/25/2025. (2) Multi-state settlement with Arby's Restaurant Group, Inc. (affiliate) regarding no-poaching provisions in franchise agreements (settled 3/11/2019, 11 states). (3) Multi-state settlement with Dunkin' Brands, Inc. (affiliate) regarding no-poaching provisions in franchise agreements (settled 3/14/2019, 13 states/jurisdictions).
Largest disclosed settlement: $650,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
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 20 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $508k average net income
- 02HIGHTrade secret misappropriation litigation against predecessor suggests IP vulnerability and potential operational disruption
- 03MINORParent company (Nestlé via Froneri acquisition chain) settlements on no-poaching and data privacy indicate compliance and HR culture risks
- 04MINORSlow unit growth (4.0% YoY) in early childhood education sector suggests market saturation or franchisee underperformance
- 05MINORHigh investment ceiling ($8.6M) with 7% royalty creates substantial ongoing cost burden requiring $1.9M+ annual revenue just to break even on royalties
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 | 2 |
| Territory type | Designated Area / Development Area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Atlanta, Georgia |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 4 |
View Item 3 litigation summary
Three cases disclosed: (1) Primula Management, LLC v. Primrose School Franchising Company LLC (pending, filed 3/3/2025, U.S. District Court Southern District of New York) - trade secret misappropriation, breach of contract, tortious interference, unjust enrichment claims; Franchisor initially named but removed from Amended Complaint filed 4/11/2025; Predecessor has Motion to Dismiss pending as of 4/25/2025. (2) Multi-state settlement with Arby's Restaurant Group, Inc. (affiliate) regarding no-poaching provisions in franchise agreements (settled 3/11/2019, 11 states). (3) Multi-state settlement with Dunkin' Brands, Inc. (affiliate) regarding no-poaching provisions in franchise agreements (settled 3/14/2019, 13 states/jurisdictions).
Items 10, 11
Training & Operations
- Classroom training
- 119 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Primrose Schools · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Primrose Schools franchise?
The total investment to open a Primrose Schools franchise ranges from $743K – $8.6M, with an initial franchise fee of $80K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Primrose Schools franchise owners earn?
According to Item 19 of the Primrose Schools FDD, the average gross sales per unit is $2.7M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Primrose Schools's franchise failure rate?
Based on SBA 7(a) loan data, Primrose Schools has a charge-off rate of 1.8% across 845 loans, meaning 1.8% 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 Primrose Schools franchise locations are there?
As of their most recent FDD filing, Primrose Schools has 525 total units in the United States, including 505 franchised units and 0 company-owned units. 21 new units were opened in the latest reporting year.
Is Primrose Schools a good franchise to buy?
FranchiseVerdict rates Primrose Schools as a A-grade franchise with a risk score of 20 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.
For franchisors
Are you the franchisor?
If you represent Primrose Schools, you can request corrections or provide updated information.
Claim this brandOther 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.