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FDD Talk: The Children’s Lighthouse Learning Centers Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on February 28, 2017

in Child-Related Franchises, Childcare Franchise, Education Franchise, FDD Talk 2017: Children's Franchises, Franchise Earnings



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Children's Lighthouse Learning Center Photo

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Children’s Lighthouse Learning Centers franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Children’s Lighthouse Learning Centers franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Children’s Lighthouse Learning Centers’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average gross revenue and enrollment numbers for the 33 franchised Children’s Lighthouse Learning Centers that were open and operating on December 31, 2015 and which had been operating for at least 18 months as of December 31, 2015

Section I – Background Information

Two Brothers Set Out to Educate Children

Children’s Lighthouse Learning Centers was started by brothers Mike and Pat Brown in 1997 in Fort Worth, Texas. The Browns started Children’s Lighthouse as a way to raise the level of educational support for children ages six months to 12 years.



Prior to opening the first location, Mike Brown spent years doing research on the education industry and met with different people who worked in education. After refining his idea, Mike invited his brother Pat to join him in starting Children’s Lighthouse.

The learning centers were immediately successful, and the Browns continued to open new locations in the Dallas/Forth Worth area. Children’s Lighthouse began franchising in 1999. Today, they have 40 locations throughout the United States.

The Browns still remain with the franchise with Pat serving as the company’s President and Mike as the CEO.

Expanding the Franchise

2016 was a successful and busy year for Children’s Lighthouse. The company opened four new centers in Birmingham, Alabama; Overland Park, Kansas; and Lewisville and Fulshear, Texas.

In addition to the new openings, Children’s Lighthouse signed 12 new franchise agreements. The company now has 30 new franchises in development. Their plans for 2017 are to open 12 centers in cities such as Denver, Orlando, Houston, and Chicago.

New Consultancy Team to Aid Company’s Growth

To build upon the franchise’s recent growth, Children’s Lighthouse hired a new team of consultants. The company says that the new team will spearhead franchise growth by offering their assistance and expertise to supplement the current teams and processes within the organization.



The new team consists of Eilene Moore, Franchise Consultant/Operations Support Manager; Robyn White, Director of Field Support/Franchise Consultant; and Anna Sherman, Monica James, and Melinda Harris as additional Franchise Consultants.

Certified as a World-Class Franchise

In 2016, Children’s Lighthouse Learning Centers received World-Class Franchise certification from the Franchise Research Institute. The company received the certification after an independent franchisee validation survey was conducted by the Institute.

The survey was designed to assess Children’s Lighthouse’s performance across 10 key metrics crucial to franchisee success. 78% of the company’s franchisees participated in the survey and gave the franchise the following ratings:

  • 97% gave a positive rating to the overall quality of the franchisor.
  • 100% gave a positive rating to the overall opportunity provided by the franchise system.
  • 96% gave a positive rating to the initial training supplied by the franchisor.
  • 97% gave a positive rating to the long-term growth potential of their franchise business.
  • 97% gave a positive rating to the helpfulness of the franchisor’s field representatives.

Consistently Ranking on Entrepreneur’s Franchise 500

Over the last decade, Children’s Lighthouse Learning Centers has ranked consistently on Entrepreneur’s annual Franchise 500 list. For 2017, the company ranked No. 332. This is a few places up from 2016’s rank of No. 370. The highest spot that Children’s Lighthouse has earned on Entrepreneur’s list was No. 314 in 2011, and the company’s lowest rank was No. 409 in 2014.

Section II – Estimated Costs

  • Please click here for detailed estimates of Children’s Lighthouse Learning Centers franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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