Primrose School Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$667,900 - $8,595,000
Franchise Fee
$42,000
Total US Locations
525
Business Summary
Primrose School Franchising SPE, LLC offers franchises for facilities operating under the Primrose Schools® mark. These facilities provide learning and educational activities, including child care services, to children from six weeks to twelve years old. The services emphasize full-time day school and child care programs and include a proprietary Balanced Learning® curriculum for infants through kindergarten, as well as programs like "Summer Adventure Club" and "Explorer Program" for elementary school-aged children.
Corporate History
Primrose School Franchising SPE, LLC was formed in Delaware on July 17, 2019. It is part of a larger corporate family, being an indirect, wholly-owned subsidiary of Primrose Holding Corporation and a direct, wholly-owned subsidiary of Primrose School Franchising II SPE, LLC. The brand's franchising history dates back to 1988, through its predecessor, Primrose School Franchising Company LLC (PSFC), which offered and sold franchises until August 2019. PSFC now provides support services to franchisees under a management agreement and serves as the franchise sales agent. Primrose Schools® has established itself as a leading educational child care provider in the U.S., notably being the first educational child care franchise system to receive AdvancED® (now Cognia™) Corporation Systems Accreditation in 2012, which it has proudly maintained.
Financial Overview
Investment Range
$667,900 - $8,595,000
Franchise Fee (Low)
$42,000
Franchise Fee (High)
$80,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$313,000
Equipment Costs (High)
$383,000
Working Capital
$300,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for Primrose School Franchising Guarantor LLC, an affiliate that guarantees Primrose School Franchising SPE, LLC's performance, present an unqualified opinion from the independent auditors for the fiscal years ending December 31, 2024, 2023, and 2022. The guarantor entity holds $6,000,000 in cash with no liabilities reported as of these dates, indicating a strong financial position to support its guarantee obligations for the franchisor.
Financing Details
Primrose School Franchising SPE, LLC does not offer direct financing to its franchisees. However, its affiliate, PSFC, may provide a limited rent guarantee in favor of a franchisee's third-party landlord under specific development programs: the Build-to-Suit, Permanent Lease, and Site First programs. This guarantee helps facilitate the franchisee's lease arrangements for the facility. Additionally, Primrose may refer prospective franchisees to preferred lenders, but it has no direct financing arrangements with these lenders and does not derive revenue from such referrals.
Performance Metrics
Total US Locations
525
Franchised Units
525
Corporate Units
0
Franchising Since
1988
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Primrose School Franchising SPE, LLC's predecessor, Primrose School Franchising Company LLC, has one pending litigation case filed in March 2025 by a vendor named Primula Management, LLC. The vendor is alleging trade secret misappropriation, breach of contract, and other claims, seeking injunctive relief and damages. Primrose's predecessor denies the allegations and plans to vigorously defend against them. Additionally, Primrose's affiliates, Arby's and Dunkin' Brands, Inc., settled separate lawsuits in 2019 with multiple states concerning "no-poaching" provisions in their franchise agreements, agreeing to remove and not enforce such provisions. Dunkin' Brands also settled a lawsuit in 2020 with the New York Attorney General related to credential-stuffing cyberattacks from 2015 and 2018, which required payments, notices, and a security program to be maintained.
Bankruptcy History
Primrose School Franchising SPE, LLC has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Primrose Schools® franchisees may obtain two additional 10-year successor terms. They must comply with all agreements, secure their premises for the successor term, and ensure the facility meets Primrose's then-current specifications and standards. Franchisees are required to provide written notice of their intent to renew between 6 and 12 months before the current term expires. They must also satisfy all monetary obligations, meet current qualification and training requirements, and sign Primrose's then-current Franchise Agreement. This new agreement may include different terms, such as higher Royalty Fees, Brand Fund Fees, and an adjusted Designated Area. Additionally, the franchisee, its owners, and its Real Estate Affiliate must execute a general release of claims. A successor fee is also required.
Training & Support Program
Franchisor Assistance
Primrose School Franchising SPE, LLC offers extensive support both before and after a facility opens. Before opening, they provide initial training and opening support services for up to two owners, which includes remote orientation, self-guided study, three days of school training at headquarters or a designated location, three days of on-site training, and two to three days of remote School Excellence Training. Franchisees receive access to confidential manuals, real estate and development assistance (tailored to the chosen program), specifications for necessary equipment and signage, grand opening advertising guidelines, and facility layout plans. They also provide on-site or remote assistance during the initial opening phase. Ongoing assistance includes regular inspections and written evaluations, updates on early learning research and curriculum, and optional or mandatory new programs. Primrose furnishes general operational assistance, local and regional advertising, suggested operating procedures, and approved advertising layouts. They also review proposed facility alterations or expansions, administer the Brand Fund, review marketing plans, and provide continuous training for Directors and management staff.
Initial Training Hours
143
Training Location
Online/remote, Franchisor headquarters in Atlanta, Georgia, or an approved on-site training facility
Ongoing Support
After opening, Primrose School Franchising SPE, LLC provides ongoing inspections and written evaluations of operations to ensure compliance with standards. They keep franchisees updated on the latest early learning research, curriculum, and teaching materials, and may introduce new mandatory or optional programs. General operational assistance is provided as needed, along with local and regional advertising support, suggested operating procedures, and approved advertising layouts. Primrose reviews proposals for facility alterations or expansions and administers the Brand Fund, including reviewing all promotional materials and marketing plans. Ongoing training is also provided for facility Directors and optional administrative training for management staff. Additional on-site assistance can be requested for a fee.
Franchise Requirements
Ideal Candidate Profile
Primrose Schools® seeks franchisees who are committed to a hands-on management approach. Ideal candidates must have at least a 5% ownership interest in their entity and be directly involved in the day-to-day operation and management of the facility as an "On-Site Owner." This individual is required to reside in the same market as the facility and be routinely present on-premises. During the six-month period prior to opening, an owner must dedicate full time and energy to the facility's development. For franchisees operating multiple facilities, there may be a requirement to hire Multi-School Managers who meet Director qualifications and may hold an equity or profit-sharing interest, ensuring continuous direct supervision and management across locations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Primrose assigns a Development Area to its franchisees, but there is no minimum size for this area. It is determined by analyzing demographics such as population, projected growth, household and family data, age, income, and workplace population, as well as topographical features, business density, and traffic flows. For most programs, the franchisee has temporary exclusive rights within this Development Area until their school opens or for two years, whichever comes first. Under the Site First Program, the Development Area can be an entire metropolitan market without exclusive rights. Once a school is open for a certain period (typically 24 months) or reaches 75% enrollment capacity, Primrose may establish a Designated Area around the school. This Designated Area does not have a minimum size and excludes any Primrose on Premise locations. While in compliance, the franchisee typically has exclusive rights within their Designated Area, meaning Primrose will not operate or license other standard Primrose schools there, but Primrose can adjust the boundaries if population and demographics change to support another school. For franchisees developing multiple locations under a Development Agreement, Primrose designates a Target Area based on demographics, market areas, competition, and site availability, which can be cities, counties, or specific zip codes. This Target Area excludes other franchisees' protected areas and Primrose on Premise locations.
Staffing Notes
Primrose Schools® facilities must always operate under the direct on-premises supervision of an On-Site Owner, a Director, and an assistant director or education coach. The On-Site Owner must be directly involved in the day-to-day operations and management of the facility and reside in its market. The Director must successfully complete Primrose's training program, be qualified for their duties, and meet all brand standards, including signing a confidentiality agreement. All employees are required to hold necessary certifications and comply with ongoing educational and child care training as mandated by applicable laws and Primrose. For franchisees operating more than two facilities, Primrose may require the hiring of Multi-School Managers who must also meet Director requirements, complete initial training, and may be required to have an equity or profit-sharing interest in the franchisee's entity. Franchisees are solely responsible for initial and continuous employee training.