Franchise Deep Dive: Children's Lighthouse Franchise Costs, Fees, Profit and Data

LAST UPDATED: April 2024 
FRANCHISE WEBSITE: https://www.childrenslighthousefranchise.com/
NUMBER OF LOCATIONS: 72 open, 91 signed
REPORTED COST TO GET IN: $867,695 to $8,985,630
REPORTED ROI (Item 19): $1,941,556 (Average Gross Revenue)

Children’s Lighthouse Early Learning School is an early childhood education franchise that believes all children deserve a safe environment to be expressive and independent learners as they develop in their own learning style. The brand’s Lighthouse Pathways approach provides opportunities for individualized skill development, group learning, self-regulation and inquiry-based investigation with a focus on four key areas; Confidence, Connection, Continuous Improvement and Curriculum.

How Many Children's Lighthouse Locations Are There?

The original Children’s Lighthouse School was founded by brothers Mike and Pat Brown in 1997. As parents and uncles of several young children themselves, they recognized the need for quality childcare that went beyond simple playtime and babysitting. That philosophy has carried over to today. The family-owned brand respects the unique needs of each child, with a proprietary curriculum that encourages young minds to explore and create.

What Is Children's Lighthouse’s Business Model?

Children’s Lighthouse franchise owners will be responsible for the successful operation of a brick-and-mortar day care center. The center focuses on character values using a proprietary Lighthouse Pathways Approach to Learning®, while also providing a place for children to be cared for, be loved and most importantly, have fun,

With more and more dual-income families, there is a massive demand for child care right now, and Children’s Lighthouse offers the type of proven business model and top-tier curriculum needed to fill it. No previous child care experience is necessary, as franchisees and senior staff will have access to in-depth pre-opening training that immerses them in the Children’s Lighthouse culture, curriculum and business model. Each independently-owned and operated School is encouraged to become accredited by Cognia™. 

The Children’s Lighthouse business can also be run semi-absentee, with a director hired to handle the day-to-day operations of the center. It is also a prime model for parents looking to start a business that will allow them to spend more time with their children. 

How Much Can Children's Lighthouse Franchise Owners Make?

According to the Children's Lighthouse website, schools that had been open for 18 months or more as of the end of 2023 saw Average Gross Revenue of $1,941,556. Please see Item 19 of the franchise disclosure document (FDD) for more details.

How Much Does It Cost to Open a Children's Lighthouse Franchise?

The initial investment required to open a Children's Lighthouse franchise can range from $867,695 to $8,985,630. Start-up costs include:

Lease the Land and Building:

• Franchise Fee: $60,000 – $85,000
• School Development Fee: $25,000
• Lease Deposit: $50,000 – $150,000
• Site Analysis Costs: $50,000 – $75,000
• Utility and Security Deposits: $5,000
• Furniture, Fixtures and Equipment: $316,945 – $387,000
• Financing Costs: $3,000 – $3,500
• Interim Interest: $40,000 – $70,000
• Opening Training Fee: $15,000 – $25,000
• Buses: $5,000
• Pre-Opening Marketing Expenses: $35,000
• Travel and Living Costs While Training: $4,000 – $6,000
• Insurance and Professional Fees: $8,000 – $15,000
• Licenses: $750 – $1,300
• Additional Funds (3 Months): $250,000 – $275,000
• Estimated Total: $867,695 – $1,162,800

Purchase the Land and Building:

• Franchise Fee: $60,000 – $85,000
• Real Estate: $875,000 – $1,300,000
• Real Estate Improvement and Construction Costs: $3,657,000 – $5,959,150
• School Development Fee: $25,000
• Utility and Security Deposits: $5,000
• Playground Equipment: $150,000 – $202,000
• Financing Costs: $204,169 – $316,380
• Interim Interest: $160,000 – $286,000
• Opening Training Fee: $15,000 – $25,000
• Buses: $5,000
• Pre-Opening Marketing Expenses: $35,000
• Travel and Living Costs While Training: $4,000 – $6,000
• Insurance and Professional Fees: $8,000 – $15,000
• Licenses: $750 – $1,300
• Additional Funds (3 Months): $277,725 – $332,800
• Estimated Total: $5,798,556 – $8,985,630

What Is the Franchise Fee for Children's Lighthouse?

The initial franchise fee required to open a Children's Lighthouse franchise ranges from $60,000 to $85,000. Franchisees will pay a royalty of 3.5% of their school’s gross revenue the first nine months of the center’s operations, followed by 7% after that, as well as a .5% monthly advertising fee. Franchisees must have $400,000 in liquid assets and a minimum net worth of $750,000.

Who’s On Children's Lighthouse’s Leadership Team?

• Michael Brown — President
• Stephanie Russ — Vice President and General Counsel
• Shelly Pair — Vice President of Operations
• Stephen Dixon — Chief Development Officer
• Dr. Kristi Smith —  Director of Education 
• Colin Berry — Director of Marketing
• Lori Ashmore — Franchise Development Manager

What Helpful Articles Can I Read to Learn More About Children's Lighthouse?

• Early childhood education franchise opens first Virginia location in Chantilly
• Children’s Lighthouse Learning Center is Growing in Chicago
• The Top 10 Emerging Early Education and Child Care Franchises Ready to Take Over the Industry

Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves. 

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