This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Childrens Lighthouse Learning Centers’ Item 19 Financial Performance Representations (2012 FDD)

• You will operate a high-quality childcare and developmental learning center providing affordable childcare for children ranging from six weeks through age five.

• The total investment necessary to begin operation of a Childrens Lighthouse Learning Center franchise is as follows:

• (a) for a leased Learning Center, the estimated initial investment ranges from $493,500 to $719,000, which includes the $85,000 to be paid to the franchisor or affiliate, or

• (b) for an owned Learning Center, the estimated initial investment ranges from $2,180,500 to $3,343,000, which includes the $85,000 to be paid to the franchisor or affiliate.

Average Gross Revenue of Franchised and Affiliate-Owned Units During Fiscal Year 2011

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  As of December 31, 2011, there were 28 Learning Centers operating in 5 states. Of these Learning Centers, 8 were affiliate-owned and 20 were franchised.

• The following summary reflects the historical financial performance of both affiliate-owned and franchised Learning Centers.

• The information below has been prepared from information reported to the franchisor during the 2011 fiscal year. The reported figures have not been audited by the franchisor or by an independent auditor.

• These financial performance representations do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• It is important to note that franchisees pay royalties, which is a cost not incurred by affiliate-owned Learning Centers; however, affiliate-owned Learning Centers pay a management fee of 15% to Childrens Lighthouse Management I, LTD.

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