Growth Club
1851 Growth Club
Comparing Franchise Brands in the Children’s Services Industry
Breaking down the number of locations and FDD Items 7 and 19 for some of today’s leading brands in the children’s services space.
Parents are willing to go to great lengths in order to ensure their children are receiving the best of the best, whether it’s in daycare, educational programs or swimming lessons. Especially with the rise of dual-income households, being able to heavily rely on children’s services that not only create greater enrichment opportunities but also provide support and teach crucial life lessons is essential for many a parent.
With the advancement of various technologies, franchise brands in the children’s services industry are quickly adapting to optimize success in the segment. We’ve broken down the FDD details for 10 major franchisors to help paint the picture of today’s children’s services landscape.
Locations: 5 with several more in development across the U.S
Item 7: $1,825,500 to $3,687,000
Item 19: Average EBIDTA for year five is $787,990
Big Blue Swim School was founded in 2009 by competitive swimmers Chris DeJong and John Lonergan. Starting as a standalone school in Wilmette, Illinois, Big Blue Swim School grew from 600 to 2,200 families essentially overnight. The goal of Big Blue Swim School is to provide a measurable curriculum for students to learn an essential life skill in a comfortable and fun environment. Through proprietary technology called Lesson Buddy, where parents are able to easily schedule their children’s swimming lessons and pay for classes, Big Blue Swim School helps franchisees maximize pool use—and revenue potential. The brand has identified 550 trade areas across the U.S. that align with its ideal market qualities and is actively pursuing qualified partners to grow with the brand.
Locations: 800-plus
Item 7: $70,980 to $159,885
Item 19: Annual gross revenue of $692,531 for top quartile of franchisees
Founded in Portland, Oregon in 1979, Sylvan Learning has provided personalized services to students of all skill levels in grades K-12 for more than 35 years. The brand’s tutoring approach blends teachers with trademarked technology and a practiced system that is measured systematically across centers with a goal of providing support through every stage of a student’s academic journey. The brand requires a minimum net worth of $150,000 and $75,000 in liquid assets, and royalties include 16% of monthly gross revenues, with a total minimum annual royalty of $32,000.
Locations: 300-plus
Item 7: $127,060 to $268,940
Item 19: Average gross revenue of $501,410 (2017)
When Dr. Raymond J. Huntington and his wife, Eileen, opened the first Huntington Learning Center in 1977, their mission was to help provide students with the best education possible. That mission prompted the development of a specific learning model and propelled the growth of the supplemental education brand to a national presence. From 2009 to 2017, Huntington Learning Center franchises saw a revenue increase that averaged 33%, causing the brand to dub itself the No. 1 revenue-producing tutoring franchise.
Locations: 39
Item 7: $541,228 to 733,635
Item 19: Average annual gross revenue of $1,968,282 and EBIDTA of $354,062 (2017)
Lightbridge Academy was established in 1997 as a family -owned business and began franchising in 2011. As an early education and child care provider, its offering is centered on its Circle of Care philosophy that places equal importance on the needs of children, families, staff and community, implementing technology to better connect all parties. Originally focusing on children between the ages of six weeks through kindergarten, the brand has expanded its offerings to include summer and holiday programming for children up to 10 years old. Lightbridge Academy requires prospective franchisees to have a minimum net worth of $1 million and $200,000 in liquid assets for a single unit.
Locations: 158
Item 7: $70,000 to $100,000
Item 19: Not available
Mad Science is one of the leading science enrichment providers due to its engaging, hands-on science experiences. With its main focus on STEM (science, technology, engineering and mathematics) education, Mad Science’s global presence in over 28 countries hopes to inspire curiosity and invite children to pursue STEM careers.
Locations: 15
Investment range: $344,250 to $589,000
Item 19: Not available
Adventure Kids Playcare was established in Texas in 2004 to provide parents with a “guilt-free” childcare option with a unique drop-in model. Centers provide services to children between 6 and 12 years old and emphasize safety and fun in programs developed to keep children active and entertained. Beyond being a popular birthday party destination, Adventure Kids Playcare offers a “playcare to go” service where caregivers come to families homes to provide childcare to multiple children, convenient and ideal for parents with wedding, business meeting or dinner party obligations.
Locations: 40
Item 7: $403,799 to $3,441,949
Item 19: Not available
Discovery Point was founded in 1988 when Cliff and Diane Clark decided to merge their talents, his as a small business owner and hers as a teacher, resulting in a childcare business that catered to every child’s individual learning needs. Discovery Point offers year-round services to kids anywhere between 6 weeks and 12 years old. The brand’s nationally-recognized curriculum is centered around engaging a child’s curiosity and develops emotional, intellectual, physical and social skills through play and guided activities.
Locations: 40
Investment range: $693,500 to $4,574,000
Item 19: Average gross revenue of $1.6 million
Children’s Lighthouse is a family-owned childcare franchise with services available to children 6 weeks to 12 years old. Its curriculum is focused on preparing children for success in both school and life. Built equally on education and strong character values, centers incorporate activities that teach integrity, fairness and honesty, as well as develop traditional academic skills. Children are divided into three different programs depending on their age group: infant and toddler, preschool and school age. The brand is also deeply involved in the communities in which it operates, with several Houston-area locations hosting a school supply drive and a Chicago location giving back through a back-to-school classroom challenge as recent examples.nThe brand requires franchisees to have a minimum net worth of $700,000 and $300,000 in liquid assets.
Locations: 470-plus
Investment range: $712,800 to $786,100
Item 19: Average EBITDA of $373,321
Early childhood education provider The Goddard School was started by Lois Goddard Haines to merge daycare and education for children 6 weeks to 6 years old. Now with a presence in 37 states, the preschool franchise employs a proprietary educational model to build more than just academic skills. Differentiating learning programs aim to develop children’s social, emotional and creative abilities by incorporating activities like chess, coding, music and yoga into their daily routine. The Goddard School charges a licensing fee of $135,000 and requires a minimum cash injection of $150,000 for prospective franchisees to join the brand.
Locations: 15
Investment range: $3,546,150 to $6,473,700
Item 19: Average EBITDA of $580,000
LeafSpring School, formerly named Rainbow Station before an early 2018 rebrand, offers a threefold service of childcare, early education and school-age recreation to families from a child’s infancy to age 13. Nursery school, preschool and kindergarten programs provided before and after school, as well as during the summer, employ a structured curriculum that also allows for creativity among individual teachers and is something the brand says has been integral to teacher retention and business growth. The brand also differentiates itself by having nurses on staff to provide backup care for ill children so parents can have a safe and trusted place to have their child cared for without having to miss work. LeafSpring’s lone international establishment in China was founded in 2013 and still goes by Rainbow Station.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
