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PRIMROSE SCHOOLS

PRIMROSE SCHOOLS

Primrose Schools offers franchises for the establishment, development, and operation of educational child care facilities that provide learning-oriented activities and child care services to children from six weeks to twelve years old, utilizing a proprietary Balanced Learning curriculum and accredited programs. The business model centers on franchising with five development programs (e.g., Real Estate Development, Build-to-Suit) that guide franchisees through site selection, construction, and operations under the Primrose Schools marks. The target market includes parents seeking high-quality, full-time preschool, after-school, and summer programs for young children.

499locations
Since 1988
Education & TrainingAtlanta, GAPrimrose Holding Corporationwww.primroseschools.comDisclaimer

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Franchise Costs

Franchise Fee
$80,000
Initial Investment
N/A
Royalty Rate
7.00%
Brand Fund
2.00%

7% royalty + 2% Brand Fund Fee (may increase to 3%)

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$2,728,570
Median Gross Revenue
$2,689,029
EBITDA Margin
18%
Top Quartile Revenue
$3,812,543
Bottom Quartile Revenue
$1,790,885
Average EBITDA
$508,975

Data Based On: 499 active franchised Facilities for Calendar Year 2024. Excludes 21 facilities opened in 2024, 5 'Excluded Facilities', and one temporarily closed facility reopening in 2025. This data is for gross revenues. Profit and Loss data is from a subset of 413 facilities.

* Average Gross Revenue for 499 facilities is directly from Table 1 'Total' row. Revenue top and bottom quartiles are from Table 1. Median Gross Revenue is from Table 3 'All Included Facilities' row. Average EBITDA and EBITDA margin are from Table 2 'All Included Facilities' row. Best guess profit low and high are based on the lowest and highest EBITDA values for 'All Included Facilities' from Table 3, as specific net income/profit figures (after all taxes, interest, and D&A) are not provided and EBITDA is the closest profit metric available.

Extracted Item 19 Section

Avg. Revenue: $2,728,570

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PRIMROSE SCHOOLS Franchise Analysis

Private equity-backed childcare franchises like Primrose Schools promise stability in a sector parents pay top dollar for, but the real story hides in the FDD's financial disclosures. Item 19 lays out revenue benchmarks that top many in education, while a massive SBA loan footprint hints at the capital intensity of building these centers. With steady expansion and transfers signaling owner interest, the question lingers: does the model reward operators as handsomely as it does parents?

Item 7 details a hefty upfront commitment starting with the $80,000 franchise fee, though total investment varies by development program—real estate and build-to-suit options demand significant construction outlays for facilities serving kids from infants to preteens. Ongoing fees hit 7% royalty plus 2% brand fund (potentially rising to 3%), but Item 19 shines: average gross sales reach $2,728,570, median $2,689,029, with EBITDA margin at 0% reflecting tight operations or variability. Profit estimates swing wildly from a $394K loss to $2.3M gain, underscoring that top performers thrive on enrollment and real estate leverage.

System metrics paint a maturing brand: 499 franchised units as of 2025 FDD, up 4% from 505 to 525 locations year-over-year, with 35 projected openings and 30 transfers indicating liquidity without distress. SBA data backs scalability—377 loans averaging $2.4M each—proving banks finance growth here. For buyers eyeing education, Primrose's Balanced Learning edge and accredited programs support premium pricing, but zero median EBITDA flags execution risks in staffing and occupancy; high-revenue outliers likely own their real estate.

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Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How PRIMROSE SCHOOLS Compares

FranchiseInvestmentFeeRoyaltyLocations
PRIMROSE SCHOOLS
Current
N/A$80K7.0%499
HEALTH MART SYSTEMS INC$262K – $834KN/A0.0%4,346
AMERIPRISE FINANCIAL SERVICES LLC$12K – $130K$2KN/A3,855
HAND AND STONE MASSAGE AND FACIAL SPA$321K – $865K$50K6.0%600
UBREAKIFIX BY ASURION$171K – $468K$40K7.0%549
Best Brains$50K – $134K$15K14.0%162
Adult Education & Training Average
17 franchises
$241K – $582K$36K8.8%–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 17 Adult Education & Training franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1TX
141
2GA
49
3OH
39
4FL
32
5CO
32
6NC
25
7MN
22
8VA
21
9TN
17
10NJ
15
11AZ
12
12IN
12
13OK
11
14MA
11
15KS
9

+20 more states

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SBA Loan History

Historical SBA 7(a) loan data for PRIMROSE SCHOOLS franchisees (2011 – 2025)

Total Loans
377
Average Loan
$2,424,761
Total Volume
$914.1M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

377 SBA loans on record

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Franchisee Contacts

1,223 franchisee contacts on file from official FDD filings.

1,223 Contacts Available

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Due Diligence

Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
1
Transfers
30
Sold to Franchisees
0
Projected New
35

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Frequently Asked Questions

PRIMROSE SCHOOLS does disclose financial performance data (Item 19) in their 2025 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.