Lightbridge Academy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,040,233 - $7,625,000
Franchise Fee
$45,000
Total US Locations
81
Business Summary
Lightbridge Academy Centers offer early learning programs for children aged 6 weeks and up, including infants, toddlers, pre-school, and kindergarten age children. They also provide summer camps for school-age children. A typical Lightbridge Academy Center is a physical location, approximately 10,000 to 11,600 square feet, designed to accommodate around 140 to 200 children.
Corporate History
Lightbridge Franchise Company, LLC was formed in November 2010 as a New Jersey limited liability company. The company began offering franchises for early learning programs in January 2011, initially under the trade name 'Rainbow Academy'. In October 2014, Lightbridge Franchise Company required its existing franchisees to transition from operating under 'Rainbow Academy' to the current 'Lightbridge Academy' brand. An affiliate, Rainbow Academy Child Care Centers, LLC, which owns the Proprietary Marks, was formed in February 2000. Lightbridge Franchise Company is also a subsidiary of Lightbridge Holdings Group, Inc., formed in May 2021.
Financial Overview
Investment Range
$1,040,233 - $7,625,000
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$50,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$150,000
Equipment Costs (High)
$575,000
Working Capital
$225,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Lightbridge Franchise Company reported a negative member's deficit (negative equity) of $1,420,645 in 2024, meaning its liabilities exceeded its assets. However, the company has shown positive net income, which was $1,904,807 in 2024 and $1,920,009 in 2023. Additionally, Lightbridge Franchise Company has guaranteed a $15,000,000 term note for its parent company, Lightbridge Holdings Group Inc., which matures in 2029.
Financing Details
Lightbridge Franchise Company does not offer any direct financing to its franchisees. However, an affiliate, New Jule Holdings, LLC, may, at its discretion, provide a limited lease guaranty to landlords for qualified franchisees. This guaranty can be up to $500,000 and is specifically for leasing the property to operate a Lightbridge Academy Center. Franchisees who elect to participate must pay New Jule Holdings, LLC a one-time initial set-up fee of $20,000 and an annual lease guaranty fee equal to 6% of the annual lease obligation (excluding CAM and taxes), payable in monthly installments.
Performance Metrics
Total US Locations
81
Franchised Units
62
Corporate Units
19
Avg Square Footage
10,800
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Lightbridge Franchise Company has no litigation cases that are required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Lightbridge Franchise Company has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew their Lightbridge Academy franchise, franchisees must notify Lightbridge Franchise Company in writing between 6 and 13 months before their current term expires. They must either own or have the right to lease their center's premises for an additional five years, or secure an approved substitute location. All required maintenance, refurbishing, renovating, and remodeling of the center, equipment, fixtures, and signs must be completed to reflect the current brand image. Franchisees must not be in default of any agreements with Lightbridge Franchise Company or its affiliates and must have substantially complied with all agreements during their term. All monetary obligations to Lightbridge Franchise Company and its affiliates must be satisfied. Franchisees must sign Lightbridge Franchise Company's then-current franchise agreement, meet current training requirements for new franchisees, pay a renewal fee equal to 10% of the current initial franchise fee, and execute a general release of all claims against Lightbridge Franchise Company and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, Lightbridge Academy assists franchisees with reviewing and approving proposed sites and lease agreements, provides a prototypical floor plan design, and conducts an initial three-week training program for up to four individuals (for a first center). The company offers ongoing consultation and advice on various operational matters and provides a list of approved vendors for initial equipment and supplies. Additionally, Lightbridge Academy helps with the development of a marketing plan for the center. After opening, Lightbridge Academy continues to provide advisory assistance and training, administers the Brand Development Fund, and may develop new curriculum or programs. The company also conducts inspections and provides written evaluations of center operations.
Initial Training Hours
177
Training Location
Iselin, New Jersey, and virtual classroom, with some on-the-job training at a Lightbridge Academy Training Center in New Jersey or the franchisee's center.
Ongoing Support
After opening, Lightbridge Academy franchisees receive continuing advisory assistance and training as deemed appropriate by Lightbridge Franchise Company. Lightbridge Franchise Company administers the Brand Development Fund for system-wide marketing and may develop new or enhanced curriculum. The company may also provide inspections and written evaluations of center operations. Franchisees and their regional managers (if applicable for multi-unit operators) are required to participate in monthly operation reviews and monthly/quarterly trainings/calls. All franchisee employees must complete a determined number of professional development hours annually. Lightbridge Franchise Company may also offer mandatory or optional refresher courses for a fee, and hosts an annual franchisee conference, which is mandatory for certain personnel.
Franchise Requirements
Ideal Candidate Profile
Lightbridge Academy seeks franchisees who will personally participate in the operation of the Center as an Operating Principal and be an equity owner in the franchise. The Operating Principal is responsible for the overall management, direction, and control of the Lightbridge Academy Center. Lightbridge Academy franchisees are also required to hire a full-time Center Director and a full-time Assistant Director. The Center Director should be responsible for direct on-premises supervision and, in most cases, must have a degree in education and an early childhood education teaching certificate as required by state law. For franchisees developing a third Lightbridge Academy Center, the franchise requires the hiring and training of a Regional Manager. Franchisees must meet Lightbridge Academy's educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, and have the aptitude and adequate financial resources to operate a Lightbridge Academy Center.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Lightbridge Academy franchisees operating a single unit will not receive an exclusive territory; their territory will only consist of the Approved Location for their Lightbridge Academy Center. While the Lightbridge Academy system may generally limit the number of Centers to a maximum of one for each 10,000 households in a county, this is a system-wide guideline rather than a specific territory definition for an individual franchisee. For multi-unit operators, Lightbridge Academy grants a non-exclusive Development Area for locating multiple Centers, but the size of this area will vary depending on the demographics of the region.
Staffing Notes
Lightbridge Academy Centers must be operated by the franchisee (or an Operating Principal for entities), a full-time Director, and a full-time Assistant Director. The Director is responsible for day-to-day operations and must meet state-specific educational and certification requirements. Franchisees are expected to hire a Center Director at least six months before opening, an Assistant Director four months before opening, and lead teachers for each age group, along with assistant teachers, one to two months before opening to support enrollment for 140-200 children. For franchisees opening their third center, a Regional Manager must be hired and trained. All hiring, firing, discipline, and training of employees are the sole responsibility of the franchisee. The Director, Assistant Director, and Regional Manager (if applicable) must complete initial training, with replacement personnel completing training within 90 days of assuming their roles.