Opening a daycare franchise from one of the big brands in a leased building starts at about $400,000 to $1.1 million, and the high estimates reach about $900,000 to $2.6 million. If you buy the land and build, the brands that count the land estimate about $2.2 million to almost $9 million. The franchise fee alone runs $50,000 to $150,000. Once you open, the franchisor takes 6% to 7% of your revenue as a royalty, plus about 1% to 3% for marketing. Most brands want at least $250,000 in cash and $400,000 or more in net worth before they will approve you.
In return, their established centers bring in about $2.2 million to $2.7 million a year on average, about 3.4 to 4.3 times what the average for-profit child care business with paid employees took in during 2022. This guide compares seven brands on figures from their Franchise Disclosure Documents (FDDs), as published on the brands' sites and in FDD summaries, shows what those figures leave out, and lists what to check before you sign. The figures were checked on October 12, 2026.
What You Get From a Daycare Franchise
A franchise is a license to run a center under someone else's name and system. You own the business and its debts. The franchisor supplies the brand, the curriculum, the operating manuals, training, and help choosing and building the site. In exchange you pay an upfront fee and a share of your revenue for as long as the agreement runs, and you follow their rules on how the center looks, what it teaches and what it buys.
The help is real, but you only get what the contract promises. Item 11 of every FDD has to open with this sentence: "Except as listed below, [the franchisor] is not required to provide you with any assistance" (16 CFR 436.5). Read that list before you count on support.
Childcare Biz founder Mike Tarantino ran a 24/7 child care center in Las Vegas from 2017 to 2019. He looked at franchising first:
"When we opened our center, we looked at buying a franchise and decided to go on our own. That meant learning fast, on the fly. Looking back, a franchise would have made the startup easier. It would have helped with our registration and given us answers when problems came up."
What a Daycare Franchise Costs to Open
Every franchisor must estimate your total startup cost in Item 7 of its FDD, including extra operating money for at least the first three months (16 CFR 436.5). The ranges are wide because the biggest cost is the building: a landlord who builds the center and leases it to you is the cheapest route, and buying land and building it yourself is the most expensive.
| Brand | Franchise fee | Total to open, leased site | Total to open, other options | Cash / net worth asked |
|---|---|---|---|---|
| The Goddard School (2026 FDD) | $135,000 | $1,003,500 to $1,503,000 (build-to-suit lease) | $5,493,500 to $8,908,000 (buy land and build) | $350,000 / $500,000 |
| Primrose Schools (2025 FDD) | $80,000, plus a $35,000 training fee | $742,900 to $8,595,000, depending on the build-out | $750,000 / $1,500,000 | |
| Kiddie Academy (2025 FDD) | $150,000 | $405,000 to $915,000, plus tenant improvements | $4,005,000 to $6,950,000 (buy and build) | $250,000 / $750,000 (leasing) |
| The Learning Experience (2025 FDD) | $60,000 | $780,799 to $1,477,299 (center developed by the franchisor) | $2,239,799 to $5,608,799 (you develop it; real estate not included) | $250,000 / $400,000 |
| Lightbridge Academy (current) | $50,000, plus $40,000 training and $40,000 development | $834,868 to $1,409,735, plus $0 to $1,200,000 of build-out | $5,801,350 to $8,122,575 (buy the real estate) | $250,000 / $750,000 |
| Celebree School (2026 FDD) | $75,000, plus $75,000 of other upfront fees | $1,023,550 to $1,404,100 (landlord builds) | $2,778,550 to $3,569,099 (remodel an existing space) | $250,000 / $750,000 |
| KLA Schools (2026 FDD) | $78,500 | $1,098,895 to $2,354,750 (existing building) | $2,171,000 to $4,963,500 (buy land and build) | $500,000 cash |
Two brands ask for more on their own websites than their FDD summaries show: Primrose's site asks for $1.5 million in liquid cash, and Celebree's site asks for $400,000 cash and $800,000 net worth. Primrose's site also now shows $1.4 million to $6.2 million, not counting land. Requirements can vary by location, so ask for the figure that applies where you want to open. Some ranges include land and some leave it out: Goddard, Lightbridge and KLA count it in their buy-and-build figures, while The Learning Experience and Primrose leave it out.
The rent or mortgage is the line that moves most. Our guide to what it costs to rent a daycare center shows how to estimate it for your market.
The Fees You Pay Every Year
The franchise fee is paid once. The royalty is paid on every dollar your center brings in, every week or month, for the life of the agreement. Item 6 of the FDD lists every recurring fee you pay the franchisor or its affiliates.
| Brand | Royalty | Marketing or brand fund | Other regular fees |
|---|---|---|---|
| The Goddard School | 7% of gross receipts | 2% (can rise to 4%) | $700 a month curriculum fee |
| Primrose Schools | 7% of gross revenue | 3% | None listed |
| Kiddie Academy | 7% of gross revenue (3.5% for the first six months for some new owners) | 2% | None listed |
| The Learning Experience | 7% of gross revenue | 1% | $525 a month software fee |
| Lightbridge Academy | 4% for the first six months, then 7% | 2% to 3% | $6,000 a quarter minimum local advertising |
| Celebree School | 7% of net revenue | 2%, plus 2% local advertising and 0.5% co-op | $1,450 a month systems fee |
| KLA Schools | 6% of gross sales | Up to 1.5% | Up to $2,500 a month local advertising |
Sources: the pages linked in the first table, the FDD summaries for Lightbridge Academy and KLA Schools, and Franchise Chatter for Kiddie Academy's 2026 royalty.
What 9% of revenue looks like
Take Goddard's own average: schools open at least 18 months brought in $2,507,631 in gross revenue. A 7% royalty on that is $175,534 a year, and the 2% marketing fee adds $50,153. With the curriculum fee, that is about $234,000 a year paid to the franchisor before rent, payroll or food. Ask any brand what its fees come to as a share of revenue at your expected enrollment, and run the same math.
What Daycare Franchise Owners Make
A franchisor does not have to publish earnings. If it does, the numbers must go in Item 19 of the FDD, and it needs a reasonable basis and written backup for them. For past results it must say how many centers the figure covers and how many actually reached it, and it must warn that your results may differ (16 CFR 436.5). Outside Item 19, it can only show you the records of a center you are buying, or a written supplement to its Item 19 (16 CFR 436.9). If a brand has no Item 19, its FDD must tell you to report any other earnings figures or projections you are given to the franchisor, the FTC and your state.
| Brand | What Item 19 reports | Which centers it counts |
|---|---|---|
| The Goddard School | Average gross revenue $2,507,631; average EBITDA $546,554 | Schools open 18 months or more (2026 FDD) |
| Primrose Schools | Average gross revenue $2,728,570; median $2,653,188 | The 499 schools open all of 2024 (2025 FDD) |
| Kiddie Academy | Average gross revenue $2,193,815; average gross profit $534,330 | Academies open 24 months or more, 2025 results |
| The Learning Experience | Average gross sales $2,163,703; median $2,160,607 | Franchised centers open 48 months or more, 2024 (2025 FDD) |
| Lightbridge Academy | Average gross revenue $2,527,056; median $2,573,248 | The 68 centers open all of 2024 (2025 FDD) |
| Celebree School | Average net revenue $2,190,264; median $2,260,904 | The 18 franchised centers open all of 2025 (2026 FDD) |
| KLA Schools | Average gross revenue $2,529,777; median $2,280,357 | 15 larger franchised schools open 18 months or more, 2024 (2025 FDD) |
Sources: the pages linked in the first table, and the FDD summaries for Lightbridge Academy and KLA Schools.
For comparison, the average for-profit child care business with paid employees brought in $632,942 in 2022 (Economic Census). Each Item 19 above counts only centers open at least a full year, which leaves out new centers that are still filling.
How to read an Item 19
- Revenue is not profit. Goddard and Kiddie Academy publish a profit figure next to revenue, and Lightbridge's 2026 FDD reports EBITDA by quartile. The others publish revenue only.
- "Gross profit" and "EBITDA" are not take-home pay. Kiddie Academy's gross profit is revenue minus labor, occupancy and other expenses. Goddard's EBITDA is revenue minus the costs of running the school, before interest, taxes, depreciation and amortization. Your loan payments still come out of it, and so does your own pay if you do not draw a salary as director. At an example rate of 8%, a 10-year loan of $1,000,000 costs about $145,600 a year.
- Look for the median, not just the average. A few very large or very small centers can skew the average. Primrose's median was $75,382 below its average, while Lightbridge's and Celebree's medians were above theirs.
- Check which centers are left out. New centers take time to fill. In Kiddie Academy's 2025 FDD, the bottom quarter of academies open 12 to 23 months averaged a loss of $53,634, while those open 24 months or more had a median gross profit of $495,797.
- Ask for the backup. The franchisor must give you the written records behind its figures on reasonable request.
Industry-wide, for-profit child care operating costs used up about 91% of revenue in 2024, leaving 9.3% (Census Annual Integrated Economic Survey). Our guide to how much daycare owners make shows how that turns into owner income.
In one online thread on daycare economics, owners pointed to staff-to-child ratios as the main limit on profit. One owner of two centers posted that their combined take-home was under six figures. Someone asking in 2026 whether a daycare is still worth owning was told to look for an established center to buy first, and if none was available, a franchise or their own brand with a mentor.
Franchise vs. Opening Your Own Center
| Franchise | Your own center | |
|---|---|---|
| Upfront cost | Franchise fee of $50,000 to $150,000, plus a build-out to brand standards | No fee; you set the build-out to your budget and your state's rules |
| Every year | About 7.5% to 10% of revenue in royalty and brand fund at current rates, plus local advertising at some brands | None, but you pay for your own marketing |
| Name and trust | A brand parents may already know | You build a name from zero |
| Know-how | Curriculum, manuals, training, site and opening help | You learn as you go, or hire a consultant |
| Control | The brand sets curriculum, look, suppliers and many policies | You decide |
| Territory | Only what Item 12 grants; some brands grant none | No protection either way |
| Selling later | Usually needs the franchisor's approval (Item 17) | You choose the buyer |
| SBA loans | The brand must be on the SBA Franchise Directory | Based on your own business plan and finances |
A franchise trades money and control for a tested system and a known name. It fits you best if you are new to child care, have the capital and want a playbook. If you already know child care, have a site and want to keep that share of revenue, your own center may fit better. If you are still deciding what kind of business to start, see our guide to the types of childcare businesses, and for the independent route, how to start a childcare business.
Before You Sign: The FDD and Your Rights
Federal law says the franchisor must give you its current FDD at least 14 calendar days before you sign a binding agreement or pay it any money. If it changes the agreement on its own in a way that matters, you get the revised version at least seven calendar days before you sign it (16 CFR 436.2). Use the time. These Items matter most:
- Item 3, Litigation: lawsuits against the franchisor, including suits involving its franchisees.
- Items 5, 6 and 7: the upfront fee, every ongoing fee and the full startup estimate.
- Item 11, Assistance: what help is promised in writing, including site selection and training.
- Item 12, Territory: if you get no exclusive area, the FDD has to say you may face competition from other franchisees and from centers the franchisor owns.
- Item 17, Renewal, Termination, Transfer and Dispute Resolution: how long the deal lasts, how it can end and what selling requires.
- Item 19, Financial Performance: see the section above.
- Item 20, Outlets and Franchisee Information: openings, closings and transfers for three years, with contact details for current owners and for owners who left in the last year.
- Item 21, Financial Statements: audited statements, so you can see whether the franchisor itself is healthy.
Call the owners in Item 20, especially the ones who left. The FTC's consumer guide to buying a franchise also suggests an accountant to check the numbers and a lawyer experienced in franchise matters to review the contract.
Fourteen states make franchisors register or file their FDD before selling there: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin (NASAA guidelines). You can read many brands' filed FDDs free in Minnesota's CARDS database and the Wisconsin franchise search, before you ever talk to a salesperson.
How to Pay for a Daycare Franchise
- SBA 7(a) loans go up to $5 million (SBA). For a franchise, the brand must be listed on the SBA Franchise Directory; the SBA says a listing is not an endorsement.
- Your own money: a business open one year or less needs to put in at least 10% of the total project cost to get an SBA 7(a) loan (SBA SOP 50 10 8.1, effective October 1, 2026). The brands' cash requirements in the table above are usually higher.
- The building: leasing a center a landlord builds for you keeps the upfront cost lowest. Buying land ties up the most cash but gives you the real estate.
Item 10 of the FDD says whether the franchisor offers or arranges any financing itself.
Licensing Still Applies
A franchise does not come with a child care license. In many states the license covers one operator at one address and does not transfer. In Texas, a change of ownership automatically revokes the license (Texas Human Resources Code 42.048), so a buyer of an existing center must apply for a new one at least 60 days before the sale, and if the new license is not issued by the sale date, the center must stop providing care until it is (HHSC guidance). The franchisor can help with the paperwork, but you meet your state's rules for staff, ratios and space. Start with our state licensing guides.
Preschool Franchises and Home Daycare Franchises
Search for "preschool franchise" and you will find the same brands. Goddard, Primrose, Kiddie Academy and the others call their centers schools or academies, and the costs above apply.
The seven brands here are all built around commercial centers. If you want to start small at home, our guides to in-home daycare costs and starting a daycare with little money cover that route.
Daycare Franchise FAQ
Q:How much does a daycare franchise cost?
For the seven brands in this guide, starting estimates for a leased building range from about $400,000 to $1.1 million, and the high estimates reach about $900,000 to $2.6 million. If you buy the land and build, the brands that count the land estimate about $2.2 million to almost $9 million. Those totals include a franchise fee of $50,000 to $150,000.
Q:What is the cheapest daycare franchise?
Of the brands here, Kiddie Academy lists the lowest starting estimate for a leased site, $405,000, but that is before tenant improvements. Lightbridge Academy has the lowest franchise fee, $50,000, with $80,000 more in training and development fees. Compare full Item 7 totals, not fees.
Q:How much do daycare franchise owners make?
Goddard and Kiddie Academy report average profit figures of about $534,000 to $547,000 a year for established centers, before loan payments, taxes and, in many cases, the owner's own pay. New centers often earn far less while they fill up.
Q:What royalty do daycare franchises charge?
Six of the seven brands here charge 7%, and KLA Schools charges 6%. Add 1% to 3% for the brand fund, so royalty and brand fund together come to about 7.5% to 10% of revenue at current rates. Goddard can raise its marketing fee to 4%, and some brands add local advertising, co-op or monthly technology and curriculum fees on top.
Q:Can I get an SBA loan for a daycare franchise?
Yes, if the brand is on the SBA Franchise Directory and you qualify. SBA 7(a) loans go up to $5 million, and a new business must put in at least 10% of the total project cost.
Q:Does the franchisor get my child care license for me?
No. The license goes to the operator named on the application, which is you or your company, not the franchisor. The franchisor may help with the application.
Q:Can I sell a daycare franchise later?
Usually, with the franchisor's approval and a transfer fee, under the terms in Item 17. The buyer also needs a new state license, because child care licenses generally do not transfer. In Texas, a change of ownership automatically revokes the license.
Q:Is a daycare franchise worth it?
It can be if you have the capital, want a proven system and can live with paying about 7.5% to 10% of revenue for it. Talk to current and former owners from Item 20 and have a franchise lawyer read the contract before you decide.