INDUSTRY BENCHMARK · 20 SYSTEMS · FISCAL 2016–2025
Are education & children franchises a good investment?
Across 20 education & children franchise systems (1,935 franchised units), franchisees exited at an annualized rate of 6.9% in their latest FDD Item 20 filings, while new outlets opened at 12.0%. The median buy-in: a $53K franchise fee, 7.0% royalty, and a total investment of $212K–$383K.
People search for a “education & children franchise failure rate,” but no such official number exists. What franchisors must disclose — in the Item 20 outlet tables of the FDD — is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
6.9%
127 exits / 1,841 units at start
12.0%
220 outlets opened
20
verified FDD extractions
1,935
at latest fiscal year end
$53K
FDD Item 5
7.0%
FDD Item 6
$212K–$383K
FDD Item 7
18/20
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 20 SYSTEMS · 20 FILINGS · FISCAL 2016–2025
| Signal | Brand | Index | Grade |
|---|---|---|---|
| STRONGEST | PRIMROSE SCHOOLS | Proven & strong | |
| STRONGEST | Ivybrook Academy | Proven & strong | |
| STRONGEST | Building Kidz School | Proven & strong | |
| WEAKEST | IMAGINE ARTS ACADEMY | Too new to judge | |
| WEAKEST | Level Up Learning | Too new to judge | |
| WEAKEST | Kids United | Too new to judge |
HEALTH INDEX: SOURCED 0–100 SCORE FROM EACH BRAND'S OWN FDD ITEM 20 · METHODOLOGY
Education & Children franchise questions, answered from the filings
What percentage of education & children franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 20 education & children franchise systems, 127 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 1,841 open at the start of the year — an annualized exit rate of 6.9% in fiscal 2016–2025. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a education & children franchise cost?
Across the latest FDD filings of 20 education & children systems, the median initial franchise fee is $53K (Item 5) and the median total investment range is $212K–$383K (Item 7).
What royalty do education & children franchises charge?
The median ongoing royalty across 20 education & children franchise systems is 7.0% of gross sales, per Item 6 of their latest FDD filings.
Are education & children franchises growing or shrinking?
In the latest Item 20 filings, education & children systems opened new franchised outlets at an annualized rate of 12.0% while franchisees exited at 6.9%. Openings currently outpace exits in this industry.
What is the healthiest education & children franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified education & children system tracked is PRIMROSE SCHOOLS.
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