Can you get an SBA loan for a TIERRA ENCANTADA franchise?

Yes, SBA loans are available for TIERRA ENCANTADA franchises. We have historical SBA 7(a) loan data on file including approval counts, average loan amounts, and default rates. Get full access to see the complete SBA loan history.

Is TIERRA ENCANTADA a good franchise to buy?

TIERRA ENCANTADA shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

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TIERRA ENCANTADA

Tierra Encantada franchises operate early childhood education centers providing warm, Spanish-language immersion learning environments for children, featuring fresh-cooked on-site meals with organic ingredients and cloth diapers. The business model centers on franchising these centers using a proprietary System that includes educational curriculum, kitchen standards, operations procedures, training, and marketing. The target market is parents seeking unique, high-quality early childhood education with language immersion, nutrition focus, and eco-friendly practices.

2locations

Since 2019

Education & TrainingMinneapolis, MNTierra Encantada Incwww.tierraencantada.comDisclaimer

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Franchise Costs

Franchise Fee

$60,000

Initial Investment

N/A

Royalty Rate

7.00%

Brand Fund

1.00%

Fixed Monthly Fees

$79 – $79

7% royalty (greater of 7% Gross Sales or $500/week) + 1% ad fund + $79/mo technology fee

Financial Performance

Item 19 Financial Performance

Data Based On: 2 franchised outlets open for full year 2023

Extracted Item 19 Section

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TIERRA ENCANTADA Franchise Analysis

Envision Spanish-speaking toddlers thriving in centers that prioritize organic, chef-cooked meals and cloth diapers over disposables. Tierra Encantada, franchising since 2019, offers Item 19 financial disclosures and a small set of SBA loans that reveal real startup realities for this niche education play. But with total locations holding steady, does the data signal a hidden gem ready to scale or a model still proving itself?

Item 7 pegs the initial franchise fee at $60,000, while ongoing fees include 7% royalty (the greater of 7% gross sales or $500 weekly minimum), 1% ad fund contribution, and a $79 monthly technology fee. Average SBA loans stand at $1,491,000 across 2 recorded approvals, pointing to total investments likely exceeding $1.5 million when factoring buildout for these specialized facilities. Item 19's disclosure of revenues gives a direct window into existing unit performance, crucial for modeling cash flow in a high-overhead childcare model.

System maturity shows 2 franchised outlets dwarfed by 9 corporate locations, with total units flat at 10 from 2022 to 2023 (0% growth) yet projecting 6 new additions soon. This corporate dominance early on minimizes franchisor risk but tests franchisee support depth. The unique blend of language immersion, nutrition, and sustainability stands out in early childhood education, potentially commanding premium tuition, but the royalty floor ensures steady franchisor revenue even from slower starters—key for buyers crunching breakeven math.

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Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How TIERRA ENCANTADA Compares

Franchise	Investment	Fee	Royalty	Locations
TIERRA ENCANTADA Current	N/A	$60K	7.0%	2
THE LEARNING EXPERIENCE ACADEMY OF EARLY EDUCATION	$781K – $1.5M	$60K	7.0%	411
KIDDIE ACADEMY EDUCATIONAL CHILD CARE	$590K – $1.0M	$150K	7.0%	363
Jovie	$130K – $205K	$50K	5.0%	160
CHILDRENS LIGHTHOUSE SCHOOLS	$1.1M – $1.5M	$85K	7.0%	69
Lightbridge Academy	$1.1M – $3.1M	$40K	7.0%	55
Early Childhood Education Average 17 franchises	$867K – $2.4M	$74K	6.6%	–

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