The Learning Experience Franchise Cost, Revenue & Review 2026
- Investment
- $806K – $1.6M
- Disclosed sales
- $2.2M
- gross sales, not profit
- SBA charge-off
- 7.2%
- on 306 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Learning Experience is an early-education and childcare franchise for children six weeks to five years, built on its proprietary L.E.A.P. curriculum. Franchisees own and operate a preschool managing teachers, enrollment, and daily care, plus after-school programs.
FranchiseVerdict summary · 2026
A The Learning Experience franchise requires a total initial investment of $806K – $1.6M, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.2M[2]. SBA 7(a) loans show a 7.2% charge-off rate across 306 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $806K – $1.6M
- 70th pct Education
- Avg gross sales
- $2.2M
- 30th pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 465
- 78th pct Education
- SBA charge-off
- 7.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · 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 $806K – $1.6M including a $60K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $2.2M).
- RISKVerdict A (Strongest tier), verdict score 83/100 (higher is better). 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, 2010–2025).
- GROWTHPositive: net +50 franchised outlets in the latest year (31 opened, 0 closed); 238 signed but not yet open (Item 20).
- GROWTHSystem growing at 33.7% CAGR over 3 years with 465 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Learning Experience Systems LLC
- Parent company
- The Learning Experience Corp. (TLEC)
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- HP TLE Holdings, LP (Harvest Partners private equity affiliate)
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- The Learning Experience Franchise Corp.
- Prior franchisor entity
- CEO title
- Director/Chairman/CEO
- Richard S. Weissman
- Incorporated in
- Delaware
- 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
- CEO
- Richard S. Weissman
- Headquarters
- Florida
- Founded
- 2003
- FDD year
- 2026
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 510% above the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $300K | $450K |
| Equipment, build-out, other | $446K | $1.1M |
| Total initial investment | $806K | $1.6M |
Source: The Learning Experience 2026 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
- $806K – $1.6M
- Bottom third — review vs category
- Liquid capital req'd
- $300K – $450K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 7.0%
- 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 |
| Training fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $0 |
| Inventory (initial) | $1K – $4K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 436% above the education norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for The Learning Experience until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.6M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one The Learning Experience unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $2.2M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical average gross sales by cohort (mature/intermediate, franchise/corporate, above/below average) plus company-owned EBITDAR (Statement 2)
- Sample size
- 266 outlets
- vs category median 16 · large
- Range (low → high)
- $715K→$4.8MCited, not corroborated — printed on page 68 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
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 $2.2M/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 8.0% (near the Education median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 33.7% CAGR over 3 years across 465 units — operators are staying and new ones are joining.
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 medians
How The Learning Experience Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 465
- Opened
- 31
- Last reporting year
- Closed
- 0
- Turnover rate
- 1.4%
- Company-owned
- 29
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (3-yr)
- +33.7%
- Net unit change over 3 years
- 3-yr CAGR
- +33.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 238
- 0.51 per open outlet · Item 20 Table 5
- Projected new
- 57
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
486 current owners across 29 states.
- TX 78
- NJ 73
- FL 53
- NY 41
- CA 27
- NC 24
- PA 19
- VA 19
- CO 17
- MA 17
- CT 14
- MI 13
- +17 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 306 loans · 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
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- brand above franchise avg ↑
- Jobs supported
- 7,950
- 4.2 per loan
- Lender concentration
- 12%
- top lender's share
Borrower mix: 84% went to startups / new businesses, 16% 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
The Learning Experience charge-off rate by loan vintage
Top lenders financing The Learning Experience franchisees
Showing 3 of 74 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Learning Experience from SBA 7(a) FOIA data.
- Principal loss rate
- 1.4%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.63%
- Avg chargeoff amount
- $248K
- Lender concentration
- 12.4%
- Job velocity
- 4.2 per $100K
- Startup risk premium
- +3.6pp
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 7,950
Top SBA lendersTop lender holds 12% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Bank of the Lake | 38 | $28.6M | 0.0% |
| 2 | Provident Bank | 26 | $15.3M | 5.9% |
| 3 | Stearns Bank National Association | 21 | $10.1M | 6.2% |
| 4 | United Community Bank | 17 | $6.7M | 44.4% |
| 5 | Byline Bank | 15 | $7.1M | 0.0% |
| 6 | Readycap Lending, LLC | 10 | $5.6M | 0.0% |
| 7 | Celtic Bank Corporation | 10 | $6.3M | 0.0% |
| 8 | Sunflower Bank National Association | 9 | $8.2M | 14.3% |
| 9 | Bank of America, National Association | 9 | $5.9M | 0.0% |
| 10 | TD Bank, National Association | 8 | $3.4M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 62 | 6 | 24.0% |
| NJNew Jersey | 36 | 1 | 4.2% |
| NYNew York | 25 | 1 | 8.3% |
| FLFlorida | 24 | 0 | 0.0% |
| VAVirginia | 18 | 0 | 0.0% |
| CTConnecticut | 16 | 0 | 0.0% |
| PAPennsylvania | 15 | 0 | 0.0% |
| CACalifornia | 13 | 0 | 0.0% |
| COColorado | 11 | 0 | 0.0% |
| ILIllinois | 11 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 7.2% — 55% 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
Large established childcare franchisor (since 2003) with 366 units, $61.5M revenue, $26.1M net income, and $105.9M net worth. 4 litigation matters are minimal relative to system size. Audited financials and Item 19 disclosed; essentially clean with routine litigation.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One pending franchisee lawsuit (Lampe v. TLES, filed Feb 2026, alleging fraud/misrepresentation re: site development delays); two concluded historical matters from the 1990s involving the CEO's prior company Tutor Time (FTC consent order with $220,000 penalty; California Dept. of Corporations desist order for unregistered franchise sales).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · WithumSmith+Brown, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 83 / 100 verdict
- 01HIGH4 litigation matters, low relative to 366 units
- 02MINORStrong profitability ($26.1M net income) and net worth ($105.9M)
- 03MINORNo bankruptcy, distress, or going-concern
- 04MEDAudited financials and Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 3 |
View Item 3 litigation summary
One pending franchisee lawsuit (Lampe v. TLES, filed Feb 2026, alleging fraud/misrepresentation re: site development delays); two concluded historical matters from the 1990s involving the CEO's prior company Tutor Time (FTC consent order with $220,000 penalty; California Dept. of Corporations desist order for unregistered franchise sales).
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 156 hrs
- Training location
- Deerfield Beach, FL (corporate headquarters) and virtual/on-site at franchisee's Center
- Ongoing training
- Required
- Time to open
- 36 mo
- From signing to launch
- Site selection
- franchisor (SDSC Addendum) or franchisee with franchisor approval (SC Addendum)
- Franchisor financing
- Not offered
- Item 10
- POS system
- TLE Technology Package (TTP) - includes CORE center management system and Show N Tell parent engagement app
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TLE Technology Package (TTP) - includes CORE center management system and Show N Tell parent engagement app
Item 20 · call current owners
Franchisee Contacts
486 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $806K – $1.6M, 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 $2.2M. The median is $2.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns The Learning Experience?
The Learning Experience is franchised by The Learning Experience Systems LLC. Its parent company is The Learning Experience Corp. (TLEC). The ultimate parent named in the FDD is HP TLE Holdings, LP (Harvest Partners private equity affiliate). Source: FDD Item 1, 2026 filing.
What is Item 19 in the The Learning Experience 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 The Learning Experience FDD and qualifies whose outlets they describe.
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 465 total units in the United States, including 436 franchised units and 29 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 verdict score of 83 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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Other Education franchises
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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.