The Learning ExperienceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Learning Experience franchise requires a total initial investment of $686K – $5.6M, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.0M[2]. SBA 7(a) loans show a 7.2% charge-off rate across 306 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $686K – $5.6M
- 60th pct Education
- Avg gross sales
- $2.0M
- 41st pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 366
- 68th pct Education
- SBA default
- 7.2%
- 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.
Bottom line
- Total investment $686K – $5.6M including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $2.0M/year (median $2.0M).
- Verdict A (Top Quintile) with a risk score of 51/100. SBA loan charge-off rate of 7.2% across 306 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 21.2% CAGR over 3 years with 366 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Learning Experience Systems LLC
- Parent company
- The Learning Experience Corp.
- Incorporated in
- DE
- HQ
- 210 Hillsboro Technology Drive, Deerfield Beach, Florida 33441
- Auditor
- WithumSmith+Brown, PC
- Audited financials
- Franchisor revenue
- $51.6M
- vs $61.5M prior year
Overview
About
Franchisees operate early childhood education and daycare centers serving infants through pre-K children, managing daily curriculum delivery, staff hiring/training, parent communications, and facility operations. Revenue comes from monthly tuition fees, with centers typically serving 50-150+ children across multiple age groups and operating year-round with seasonal enrollment fluctuations.
- CEO
- Richard S. Weissman
- Headquarters
- FL
- Founded
- 2003
- FDD year
- 2024
- States available
- 26
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $200K | $400K |
| Equipment, build-out, other | $426K | $5.1M |
| Total initial investment | $686K | $5.6M |
Source: The Learning Experience 2024 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
$305K
15.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
11.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $686K – $5.6M
- Near category avg vs category
- Liquid capital req'd
- $200K – $400K
- Below avg, review vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $525 |
| Transfer fee | $25K |
| Renewal fee | $0 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $2.0M
- Item 19 type
- gross_sales
- Sample size
- 296 units
- vs category median 14 · large
- Range (low → high)
- $488K→$4.3M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
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 The Learning Experience Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 366
- Opened
- 31
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 40
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (yr3)
- +8.3%
- Net unit change last year
- 3-yr CAGR
- +21.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 31
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 306
- Loan volume
- $189.7M
- Median loan
- $450K
- 50th percentile
- Charge-off rate
- 7.2%
- 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)
- 92.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 74
- Defaults
- 11
Vintage analysis
The Learning Experience 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 The Learning Experience'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
- 19-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Learning Experience presents meaningful risk due to undisclosed profitability, historical litigation precedent, modest growth trajectory, and opacity around actual franchisee earnings despite substantial capital requirements.
Audited financials (Item 21)
Yes · WithumSmith+Brown, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 100 rating
- 01HIGHHistorical litigation with franchisees over contract disputes and FTC compliance issues (1990s cases with Weissman/Tutor Time) suggests potential franchisor-franchisee relationship problems
- 02MEDNo Item 19 (Average Unit Volume) disclosed despite $2.03M average revenue claim — lack of transparency on profitability and actual franchisee earnings
- 03MEDHigh initial investment range ($685K-$5.6M) with 7% royalties on gross revenue creates significant break-even burden without disclosed net income data
- 04MINORModest unit growth of 8.3% YoY is below industry standards for childcare franchises and may indicate market saturation or franchisee satisfaction issues
- 05MINORWide investment variance ($4.9M spread) suggests inconsistent unit economics or undefined territory/scope definitions
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 | 15 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Circular |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 156 hrs
- POS system
- CORE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CORE
Item 20 · call current owners
Franchisee Contacts
486 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Learning Experience · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Learning Experience franchise?
The total investment to open a The Learning Experience franchise ranges from $686K – $5.6M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Learning Experience franchise owners earn?
According to Item 19 of the The Learning Experience FDD, the average gross sales per unit is $2.0M. The median is $2.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Learning Experience's franchise failure rate?
Based on SBA 7(a) loan data, The Learning Experience has a charge-off rate of 7.2% across 306 loans, meaning 7.2% 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 The Learning Experience franchise locations are there?
As of their most recent FDD filing, The Learning Experience has 366 total units in the United States, including 24 franchised units and 40 company-owned units. 31 new units were opened in the latest reporting year.
Is The Learning Experience a good franchise to buy?
FranchiseVerdict rates The Learning Experience as a A-grade franchise with a risk score of 51 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.