Updated November 7, 2021.
Detailed Estimates of The Learning Experience Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Learning Experience’s 2021 Franchise Disclosure Document
New Centers with Site Development Service Charge (SDSC) Addenda
1. Franchise Fee: $60,000
- The Franchise Fee of $60,000 is for one franchise Center.
2. SDSC Fee – Only for Site Development: $185,000 to $235,000
- If you elect to retain The Learning Experience to provide the Site Development Service, you must do so at the time you execute your Franchise Agreement.
- Upon execution of the SDSC Addendum, The Learning Experience will be obligated to arrange and fully coordinate for you the construction, improvement, design, development, and furnishing of a completely operational new turnkey Center, ready to open for business, with equipment for seven classrooms, including at least one infant classroom.
- The cost of the SDSC is a base charge of $185,000 for a facility of up to 9,000 square feet plus $25 for each additional square foot. Because the standard new Center is normally 10,000 square feet, the SDSC is normally $210,000. The high end estimate above is based upon a 12,500 sq. ft. facility.
- If you elect to retain The Learning Experience under the SDSC Addendum, your payment to The Learning Experience of the SDSC only pays for its services to coordinate the development of your new Center.
- As part of the SDSC, The Learning Experience arranges for Furniture, Fixtures, and Equipment (FF&E) to be provided for the new Center by the landlord or developer of your new Center, and the landlord or developer owns or holds a security interest in those items.
- You acquire no ownership rights in the real or personal property in the new Center by your payment of the SDSC.
- The SDSC does not cover enrollment of students or the hiring of staff.
- If The Learning Experience is the guarantor, sub-landlord, or otherwise liable under any lease or other real estate agreement applicable to your new Center for any reason, then you will be obligated to pay an SDSC to The Learning Experience, regardless of whether you have executed an SDSC Addendum or decided to develop your own site.
- Under the SDSC Addendum, The Learning Experience will coordinate delivery by the landlord or developer of its designated specifications and leasehold improvements, FF&E, food and expendables, and educational equipment and supplies for approximately 108 children at no charge. You will not own any of these items. You will have to replenish depleted supplies as you need them for your Center.
3. Lease Security Deposits: $15,000 to $100,000
- Figures are based on The Learning Experience’s assumption that the leased premises will be rented and that the landlord may require a security deposit equal to three months’ rent. These assumptions may differ from your actual experience.
4. Insurance Premiums: $3,500 to $15,000
5. Assignor Security Deposit: $20,000 to $50,000
6. Organizational Expenses: $1,000 to $2,000
7. Software Service Fee for 6 Months: $2,370 (at $395/month)
8. Pre-paid Rent for Up to 3 Months: $0 to $90,000
- In some instances, a landlord may require the tenant to prepay rent, either before or after the lease commencement date.
9. Opening Marketing Efforts: $30,000 to $45,000
10. Computer Set-Up Fee: $2,399
11. Payments/Security Deposits to Utility Provider (heat, gas, electric, water, sewer, telephone, and internet service): $500 to $5,000
12. Local and State Licenses and Permits: $400 to $2,000
13. Travel/Lodging for Staff Training: $2,500 to $10,000
- This estimate assumes that you will send the required number of individuals to the initial training program for the number The Learning Experience requires.
- The Learning Experience does not charge a tuition fee for the initial training program; however, you will be responsible for any salaries, meals, lodging, other living expenses and transportation costs incurred by your employees while attending the initial training program.
14. Initial Employee Salaries for 6 Months: $15,000 to $50,000
- You will need to hire your administrative team prior to opening for training, and in accordance with the requirements of your state, which in some cases may require you to hire your team earlier.
- This category includes an annual salary for one Center Director and hourly pay for six to twelve staff members.
15. Curriculum: $500 to $3,850
16. Food/Paper/Expendables: $1,250 to $2,000
17. Miscellaneous: $0 to $70,000
- Miscellaneous includes costs due to delays, interest, third-party fees, etc. and is based on The Learning Experience’s experience in its owned Centers. Your experience with respect to such costs may be higher or lower than The Learning Experience’s estimates.
18. Additional Funds – Operating Expenses for 6 Months: $200,000 to $250,000
- This category includes opening cash and other miscellaneous expenses over and above those included above that may be incurred during the first six months of the franchised business operations.
- For a 10,000 to 11,000 square foot Center, you must have at least $150,000 of initial Additional Funds. For larger Centers, you must have at least $200,000 in initial Additional Funds.
19. L.E.A.P. Interactive Setup Fee (per whiteboard): $5,000 to $8,800
20. Total: $544,419 to $1,003,419
New Centers with Site Coordination (SC) Addenda
1. Franchise Fee: $60,000
2. Site Coordination Fee: $50,000
- If you are developing and constructing your own new Center as approved by The Learning Experience, you must sign an SC Addendum and pay a Site Coordination Fee of $50,000. This fee is nonrefundable.
3. Lease Security Deposits: $15,000 to $100,000
4. Insurance Premiums: $3,500 to $15,000
5. Organizational Expenses: $1,000 to $2,000
6. Software Service Fee for 6 Months: $2,370 (at $395/month)
7. Computer Hardware and Microsoft Office: $8,000
8. Pre-paid Rent for Up to 3 Months: $0 to $90,000
9. Opening Marketing Efforts: $30,000 to $45,000
10. Computer Set-Up Fee: $2,399
11. Payments/Security Deposits to Utility Provider (heat, gas, electric, water, sewer, telephone, and internet service): $500 to $5,000
12. Local and State Licenses and Permits: $400 to $2,000
13. Travel/Lodging for Staff Training: $2,500 to $10,000
14. Initial Employee Salaries for 6 Months: $15,000 to $50,000
15. Curriculum: $500 to $3,850
16. Food/Paper/Expendables: $1,250 to $2,000
17. Miscellaneous: $0 to $50,000
18. Signage: $5,000 to $20,000
19. Improvements (including Make Believe Boulevard) and Land: $650,000 to $2,500,000
20. Furniture, Fixtures, and Equipment: $50,000 to $125,000
- This category includes such items as telephones, alarm system, food supplies, janitorial equipment, educational equipment, three administrative computers, and three classroom computers meeting The Learning Experience’s specifications
- If you have leased equipment, you will be liable on the leases even if your Franchise Agreement is terminated.
- The cost of a L.E.A.P. Interactive whiteboard is not included in your SDSC, and the whiteboard is not part of FF&E.
21. Architectural Fees: $35,000 to $85,000
22. Proprietary Products for 108 Children and Staff: $50,000 to $100,000
23. Additional Funds – Operating Expenses for 6 Months: $200,000 to $250,000
- This category includes opening cash and other miscellaneous expenses over and above those included above that may be incurred during the first six months of the franchised business operations.
- For a 10,000 to 11,000 square foot Center, you must have at least $150,000 of initial Additional Funds. For larger Centers, you must have at least $200,000 in initial Additional Funds.
24. L.E.A.P. Interactive Setup Fee (per whiteboard): $5,000 to $8,800
25. Total: $1,187,419 to $3,586,419
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