INDUSTRY BENCHMARK · 37 SYSTEMS · FISCAL 2023–2025
Are education & children franchises a good investment?
Across 31 education & children franchise systems, the median system's exit rate in its latest fiscal year was 0.8%, and its opening rate 24.1%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 3.7%. Mathnasium Centers alone is 25% of the sector's franchised base. Median franchise fee: $50K; median royalty: 7.5%; median total investment: $179K–$388K.
There is no official “education & children franchise failure rate.” 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. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
0.8%
31 systems · latest fiscal year each
3.7%
Mathnasium Centers alone is 25% of the sector's franchised base.
24.1%
491 outlets opened in total
37
FDD filed within 24 months
4,266
at latest fiscal year end
$50K
FDD Item 5
7.5%
FDD Item 6
$179K–$388K
FDD Item 7
34/37
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 37 SYSTEMS · 37 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | Best Brains | Strong |
| STRONGEST RECORD | PRIMROSE SCHOOLS | Strong |
| STRONGEST RECORD | AQUA-TOTS SWIM SCHOOLS | Strong |
| WEAKEST FILED RECORD | TGA PREMIER SPORTS | Weaker |
| WEAKEST FILED RECORD | SYLVAN LEARNING | Weaker |
| WEAKEST FILED RECORD | CODE NINJAS | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Education & Children franchise questions, answered from the filings
How many education & children franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 31 education & children systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 0.8%; pooled across systems, with no system counting for more than 20% of the weight, it was 3.7%. Mathnasium Centers alone is 25% of the sector's franchised base. Not every exit is a failure: some are retirements or sales.
How much does an education & children franchise cost?
Across the latest FDD filings of 37 education & children systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $179K–$388K (Item 7).
What royalty do education & children franchises charge?
The median ongoing royalty across 37 education & children franchise systems is 7.5% of gross sales, per Item 6 of their latest FDD filings.
Are education & children franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median education & children system opened new franchised outlets at 24.1% of its starting base and lost 0.8% to exits. For the median system, openings outpaced exits.
What is the healthiest education & children franchise?
Of the education & children systems rated from their FDD Item 20 tables, Best Brains has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
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