Franchise Deep Dive: Lightbridge Academy’s Franchise Costs, Fees, Profit and Data

The brand known for its Circle of Care foundation continues to appeal to potential franchisees in a multi-billion dollar industry. Here’s why:

By Aryanna Cannoy1851 Franchise Contributor

Updated 2:14PM • 03/19/23

LAST UPDATED: February 6, 2023

FRANCHISE WEBSITE: https://lightbridgeacademyfranchise.com/

NUMBER OF LOCATIONS: 67 (as of 12/21/22)

REPORTED COST TO GET IN: $621,233 – $824,150

REPORTED ROI (Item 19): $1,332,649 (average gross income of developing franchises)

Lightbridge Academy* has been cultivating a great reputation for itself in the childcare industry since 1997. When the brand began franchising nearly 15 years later, the executive team focused on creating a business model that appeals to both potential franchisees and parents. With the childcare industry expected to grow to an $83.6 billion industry by 2030, Lightbridge Academy continues to evolve.

Learn more at Lightbridge Academy's 1851 Newsroom, here.

How Many Lightbridge Academy Locations Are There?

As of December 21, 2022, there were 67 Lightbridge Academy locations in operation. According to the brand’s website though, there are over 120 locations in operation or under development in Florida, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas and Virginia. Lightbridge Academy was founded in 1997 but didn’t start franchising until 2011. Over the last three years, the brand has seen a growth of 60%.

What Is the Lightbridge Academy Business Model?

To operate a Lightbridge Academy, a franchisee must have a physical location within the territory agreed upon. Once open, each center has access to the brand’s ParentView® Internet Monitoring System and eCommunication app that allows parents to check in and receive real-time updates on their children at any time.

How Much Can Lightbridge Academy Franchise Owners Make?

Lightbridge Academy’s Franchise Disclosure Document reflects the average sales for centers opened for at least 24 months (mature centers) and centers opened for 12 to 24 months (developing centers).

Mature Centers (42 locations):

Gross Average Revenue of all Centers: $1,756,871
Gross Average Revenue of Franchised Centers (29): $1,738,508

Developing Centers (10 locations):

Gross Average Revenue of all Centers: $1,372,932
Gross Average Revenue of Franchised Centers (8): $1,332,649

How Much Does It Cost to Open a Lightbridge Academy?

The estimated cost to begin the operation of a Lightbridge Academy ranges from $621,233 to $824,150. The following costs are part of the upfront costs included in the initial investment:

Initial Franchise Fee: $40,000
Initial Training: $40,000
Center Development Fee: $40,000
Background Checks and Asset Verification: $1,000–$2,000
Lease Deposit: $44,333–$87,500
Lease Guaranty Set-Up Fee: $0–$20,000
Lease Guaranty Payment: $0–$2,900
Equipment, Fixtures, and Furnishing: $241,000–$297,500
Permits & Licenses: $400–$1,000
Signs: $18,000–$30,000
Prepaid Insurance Premium: $4,000–$6,750
Pre-Launch Advertising: $24,000
Initial Promotional Materials: $2,500
Training: $1,000–$5,000
Professional Fees: $15,000–$25,000
Additional Funds—3 Months: $150,000–$200,000

There are also recurring costs to operate a Lightbridge Academy. These costs and fees include:

Royalty Fee: 7% of Gross Revenues. This fee is reduced to 4% in the first six months of operation.
Brand Development Fee: Up to 3% of Gross Revenues
Advertising Cooperative: Up to 2% of Gross Revenues

What Is the Franchise Fee for Lightbridge Academy?

The initial franchise fee to begin the operation of a single Lightbridge Academy franchise is $40,000. However, the brand does offer special financial incentives to qualified veterans who were honorably discharged from the U.S. Armed Forces. Qualifying candidates can receive a 10% reduction off the initial franchise fee for each Lightbridge Academy Center they agree to develop.

If a franchisee elects to open more than one franchise, development rights fees are owed upon qualification. An additional initial franchise fee does not need to be paid for this option. There are development rights fees, depending on the number of centers to be opened, and qualifying veterans can receive a 10% reduction for the fees. Those fees are listed below.

2 Centers: $65,000
3 Centers: $85,000
4 Centers: $100,000
5 Centers: $115,000