In this FDD Talk 2017 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 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Children’s Lighthouse Learning Centers franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Children’s Lighthouse Learning Centers’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• 2016 average gross revenue and enrollment numbers for the 32 franchised Children’s Lighthouse Learning Centers that were open and operating on December 31, 2016 and which had been operating for at least 18 months as of December 31, 2016

Section I – Background Information

14 Things You Need to Know About the Children’s Lighthouse Learning Centers Franchise

Continuing Growth Throughout Texas

1.  During 2017, Children’s Lighthouse has continued its expansion across Texas, especially in the Dallas/Fort Worth area. As part of the company’s extensive franchise growth strategy, Children’s Lighthouse is seeking to grow its presence in the suburbs of Mansfield, Texas.

2.  According to the company, Mansfield is a great place for Children’s Lighthouse because the city is often “pinpointed as ripe for economic development.” The city’s population has more than doubled in the past 15 years with double-income and single-parent families on the rise. Additionally, waiting lists are at an all-time high in daycare centers throughout the south Dallas/Fort Worth area.

3.  Children’s Lighthouse has already opened a few new locations in Texas this year. Since summer 2017, the company has opened three new Texas learning centers — in Cypress, Oak Hill, and Keller. The Cypress location is owned and operated by Jessica and John Wilson; the learning center in Oak Hill is owned and operated by Julie and Michael Carter; and the location in Keller is run by franchisee Gigi Gupta.

4.  Stephen Dixon, chief development officer for Fort Worth-based Children’s Lighthouse Franchise Company, said, “Each of these Children’s Lighthouse centers will enrich their communities by providing the high-quality educational child care that is so important to parents. Our growth is a direct reflection of the dedication we have to providing children with the highest quality educational child care.”

Signed New Franchise Agreements

5.  Since the start of 2017, Children’s Lighthouse has pushed its nationwide expansion efforts. By June 2017, the company announced that it had signed several new franchise agreements in the following cities: Denton, Texas; Seabrook, Texas; Raleigh-Durham, North Carolina; Metro Houston, Texas; Oak Point, Texas; Cypress, Texas; San Antonio, Texas; and Summerwood-Lake Houston, Texas.

6.  Not only has the company been busy signing new agreements, but by the halfway mark in the year, Children’s Lighthouse had opened five new learning centers. The new Children’s Lighthouse Learning Centers were opened in Gardner, Kansas; Raleigh, North Carolina; Round Rock, Texas; The Woodlands – Creekside, Texas; and Montgomery, Texas.

Hands Out Awards to Franchisees at 2017 National Convention

7.  At the 2017 Children’s Lighthouse National Franchisee Convention held in San Antonio, Texas, Children’s Lighthouse recognized several franchisees who have made a lasting impact on their communities through progressive educational childcare programs.

8.  The learning center in Winter Green, Florida won the Franchise of the Year award, which is given to a high-performing franchise team that demonstrated remarkable care and execution of educational programs, a commitment to ongoing training, and exceptional support for company growth.

9.  The company awarded Angie and Tim O’Connor, owners of the Children’s Lighthouse Learning Center at Bulverde Road in Texas, the Rising Star award, which goes to the franchise team with
consistently high enrollment numbers.

10.  Children’s Lighthouse gave out two more awards, the Bright Star award to Aspen Ricks (of Overland Park, Kansas), the franchisee with the highest opening growth rate in the system during 2016; and the Golden Anchor award to Steve and Stefani Kulawik, the franchisees who best maintain steady success and remain positive.

11.  Also at the conference, Children’s Lighthouse announced that its proprietary curriculum had been accredited by AdvancED, the world’s largest community of education professionals who conduct rigorous, on-site external reviews of Pre-K to 12 schools and school systems.

Company History

12.  Children’s Lighthouse Learning Centers was established in 1997 by Pat Brown and his brother Mike. The Browns founded the business with the goal of providing educational daycare to families. The curriculum at Children’s Lighthouse encourages their students of infants, toddlers, and preschool children to become well-rounded learners.

13.  The Browns began franchising Children’s Lighthouse in 1999 and have been growing the company steadily since then. There are currently over 40 locations in operation nationwide with over two dozen more in development. Today, Pat and his nephew Michael Brown oversee strategic leadership and directly supervise operations, franchise development, and marketing.

Entrepreneur’s Franchise 500

14.  Children’s Lighthouse Learning Centers has ranked on Entrepreneur’s annual Franchise 500 list six times in the last 10 years (it did not rank in 2007, 2008, 2009, and 2012). The company’s highest rank was No. 314 in 2011, while its 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 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Children’s Lighthouse Learning Centers’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

• The information listed below has been prepared from information reported to the franchisor during the 2016 fiscal year.

• The reported figures have not been audited by the franchisor or an independent auditor.

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

• Below is the average Gross Revenue and average student enrollment information for the 32 franchised Children’s Lighthouse Learning Centers that were open and operating on December 31, 2016 and which had been operating for at least 18 months as of December 31, 2016 (“Reporting Centers”).