Primrose Schools Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

Ambrosio’s Take

Primrose Schools operates upscale early childhood education centers built around a proprietary “Balanced Learning” curriculum, commanding premium tuition that shows up clearly in its financials. The investment is substantial and comes in two forms: a new-build facility runs $5,016,600 to $7,960,300, while an adaptive-reuse conversion of an existing space runs a somewhat lower $2,152,500 to $7,265,300. Against average 2025 gross revenue of $2,779,923 per school, both paths produce thin sales-to-investment ratios (0.4:1 new-build, 0.6:1 adaptive-reuse), well below the ratios posted by Kiddie Academy and The Goddard School under their leased-facility options, though comparable to those same competitors’ purchased-facility ratios (0.3:1 each). Occupancy rate is the single clearest driver of performance: schools in the top occupancy quartile generated nearly double the revenue of the bottom quartile, and EBITDA margins for the most occupied schools (21.6%) were nearly triple those of the least occupied (8.2%), underscoring how much enrollment ramp-up matters to eventual profitability.

Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Primrose Schools franchise, based on Item 7 of the company’s 2026 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Primrose Schools franchise, based on Items 5 and 6 of the company’s 2026 FDD

Section III – Number of franchised and company-owned Primrose Schools outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD

Section IV – News updates on the Primrose Schools franchise opportunity

Section V – Presentation and analysis of Primrose Schools’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:

• 2025 average occupancy rate, annual gross revenue, and various key performance indicators for the 520 Primrose Schools that operated as active franchises for the entire calendar year 2025, by quartile based on the average occupancy rates of those schools in calendar year 2025

• 2025 average occupancy rate, annual gross revenue, total payroll and taxes, advertising and royalty, total other expenses, school operating expenses, and EBITDAR for the 405 Primrose Schools that were active franchises throughout calendar year 2025 and submitted profit and loss data for calendar year 2025

• 2025 average occupancy rate, annual gross revenue, total payroll and taxes, advertising and royalty, total other expenses, school operating expenses, rent, and EBITDA for the 357 Primrose Schools that were active franchises throughout calendar year 2025,  submitted profit and loss data for calendar year 2025, and reported rent expenses

Section VI – Key ratios, comparables, computations, and analyses for the Primrose Schools franchise opportunity (exclusive content for Platinum subscribers)

Section I – Primrose Schools Franchise Costs

• Primrose Schools (new-build schools) franchise costs, based on Item 7 of the company’s 2026 FDD:

• Initial Fee:  $50,000 to $80,000
• Real Estate Fee:  $25,000 to $70,000
• Development Costs:  $4,254,600 to $6,202,500
• Security Deposit and Rent Guarantee Fee:  $0 to $250,000
• Utility Security Deposits:  $10,000 to $30,000
• School Equipment and Supplies:  $313,000 to $383,000
• Insurance:  $5,000 to $20,000
• Initial Training Fee:  $35,000
• Marketing, Advertising, and Grand Opening:  $75,000 to $105,000
• Vehicle Lease:  $0 to $2,800
• Licenses:  $4,000 to $7,000
• Miscellaneous:  $10,000 to $45,000
• Financing Cost:  $55,000 to $310,000
• Additional Funds – 3 Months:  $180,000 to $420,000
• Total Estimated Primrose Schools Franchise Costs (new-build schools):  $5,016,600 to $7,960,300

• Primrose Schools (adaptive-reuse schools) franchise costs, based on Item 7 of the company’s 2026 FDD:

• Initial Fee:  $50,000 to $80,000
• Real Estate Fee:  $25,000 to $70,000
• Development Costs:  $1,390,500 to $5,507,500
• Security Deposit and Rent Guarantee Fee:  $0 to $250,000
• Utility Security Deposits:  $10,000 to $30,000
• School Equipment and Supplies:  $313,000 to $383,000
• Insurance:  $5,000 to $20,000
• Initial Training Fee:  $35,000
• Marketing, Advertising, and Grand Opening:  $75,000 to $105,000
• Vehicle Lease:  $0 to $2,800
• Licenses:  $4,000 to $7,000
• Miscellaneous:  $10,000 to $45,000
• Financing Cost:  $55,000 to $310,000
• Additional Funds – 3 Months:  $180,000 to $420,000
• Total Estimated Primrose Schools Franchise Costs (adaptive-reuse schools):  $2,152,500 to $7,265,300

Section II – Primrose Schools’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Primrose Schools’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:

• Initial Franchise Fee:  $50,000 to $80,000

• Continuing Services and Royalty Fee:  7% of Gross Revenues

• Primrose Brand Fund Fee:  currently, 2% of Gross Revenues, but may be increased by Primrose Schools at any time, but not more than a total of 3% of Gross Revenues

• Local Advertising:  1% of Gross Revenues for the preceding month or $1,000, whichever is greater

• Cooperative Contributions:  1% of Gross Revenues for the previous month, unless members of the Cooperative agree to increase it up to 2% of Gross Revenues

Section III – Number of Franchised and Company-Owned Primrose Schools Outlets

Franchised

2023

• Outlets at the Start of the Year:  483
• Outlets at the End of the Year:  505
• Net Change:  +22

2024

• Outlets at the Start of the Year:  505
• Outlets at the End of the Year:  525
• Net Change:  +20

2025

• Outlets at the Start of the Year:  525
• Outlets at the End of the Year:  557
• Net Change:  +32

Company-Owned

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2024

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2025

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Primrose Schools Franchise

• Primrose Schools Secures 27 New School Commitments, Fuels New Market Expansion and Introduces New Executive Leadership Team

• Primrose Schools Releases 2025 Primrose Promise Year in Review

• Primrose Schools Accelerates Franchise Development Through Nationwide Expansion

• Primrose Schools Ranked No. 195 on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Primrose Schools Franchise (Item 19, 2026 FDD)

• This Item 19 presents information about the financial performance of franchised Schools during the calendar year ending December 31, 2025 (“Calendar Year 2025”) that were active franchises throughout Calendar Year 2025.

• An “active franchise” is a franchise that opened a School prior to January 1, 2025 and remained in operation through December 31, 2025.

• This Item 19 does not include data for (a) five Primrose on Premise Schools (which are not representative of a typical School) that were active franchises throughout Calendar Year 2025, one of which permanently closed at year-end, (b) one School that temporarily closed in Calendar Year 2025 to relocate, and (c) two Schools that permanently closed in Calendar Year 2025, both of which had been open for at least 12 months prior to closing.

Part 1 – Summary of Annual Gross Revenues and KPIs of Schools by Occupancy in Calendar Year 2025

• Part 1 of this Item 19 presents annual Gross Revenue (“AGR”) and certain key performance indicators (“KPIs”) in Calendar Year 2025 for Schools that operated as active franchises for the entire Calendar Year 2025 based on the Average Occupancy Rates of those Schools in Calendar Year 2025. However, the data for the percentage of Schools with an Enrollment Coordinator is as of April 1, 2026.

Top Quartile

• Number of Schools:  130
• Average Occupancy Rate:  94%
• Average Annual Gross Revenue:  $3,586,393
• Average Negative Review Response Rate:  74.7%
• % w/ Enrollment Coordinator:  25%
• % w/ Education Coordinator:  82%
• Average Net Promoter Score – Enrolled:  85
• Average Net Promoter Score – Withdrawn:  75
• Average Licensed Capacity:  185
• Average # of Competitors w/in 5 Minutes:  1.8
• Average 0-4 Year Olds w/in 10 Minutes:  5,851

Second Quartile

• Number of Schools:  130
• Average Occupancy Rate:  83%
• Average Annual Gross Revenue:  $3,109,936
• Average Negative Review Response Rate:  66.1%
• % w/ Enrollment Coordinator:  22%
• % w/ Education Coordinator:  68%
• Average Net Promoter Score – Enrolled:  79
• Average Net Promoter Score – Withdrawn:  60
• Average Licensed Capacity:  188
• Average # of Competitors w/in 5 Minutes:  1.6
• Average 0-4 Year Olds w/in 10 Minutes:  6,475

Third Quartile

• Number of Schools:  130
• Average Occupancy Rate:  72%
• Average Annual Gross Revenue:  $2,513,577
• Average Negative Review Response Rate:  65.5%
• % w/ Enrollment Coordinator:  13%
• % w/ Education Coordinator:  76%
• Average Net Promoter Score – Enrolled:  74
• Average Net Promoter Score – Withdrawn:  43
• Average Licensed Capacity:  184
• Average # of Competitors w/in 5 Minutes:  1.7
• Average 0-4 Year Olds w/in 10 Minutes:  6,200

Bottom Quartile

• Number of Schools:  130
• Average Occupancy Rate:  52%
• Average Annual Gross Revenue:  $1,909,787
• Average Negative Review Response Rate:  63.7%
• % w/ Enrollment Coordinator:  17%
• % w/ Education Coordinator:  62%
• Average Net Promoter Score – Enrolled:  73
• Average Net Promoter Score – Withdrawn:  48
• Average Licensed Capacity:  188
• Average # of Competitors w/in 5 Minutes:  1.8
• Average 0-4 Year Olds w/in 10 Minutes:  6,813

Part 2 – Average Annual Gross Revenue in Calendar Year 2025 by Vintage (All New Schools)

• Part 2 of this Item 19 presents AGR data in Calendar Year 2025 for 44 Schools that opened new Schools between January 1, 2022 and December 31, 2024.

• Primrose Schools excluded (a) 15 Schools that opened during this period that acquired Conversion Schools, since those schools had previously operated under other brands, (b) one School that opened and closed during this timeframe, and (c) two Primrose on Premise Schools that opened during such period. This includes both New-Build Schools and Adaptive-Reuse Schools.

• For purposes of this Section, “2022 Vintage” includes 13 Schools that opened in calendar year 2022, “2023 Vintage” includes 15 Schools that opened in calendar year 2023, and “2024 Vintage” includes 16 Schools that opened in calendar year 2024.

2024 Vintage

• Number of Schools:  16
• Average Annual Gross Revenue:  $1,943,324
• Median Annual Gross Revenue:  $1,959,063
• Number and Percent at or Above Average:  8/50%
• Lowest Annual Gross Revenue:  $949,040
• Highest Annual Gross Revenue:  $3,091,732

2023 Vintage

• Number of Schools:  15
• Average Annual Gross Revenue:  $2,898,249
• Median Annual Gross Revenue:  $2,724,821
• Number and Percent at or Above Average:  5/33%
• Lowest Annual Gross Revenue:  $1,718,873
• Highest Annual Gross Revenue:  $5,564,134

2022 Vintage

• Number of Schools:  13
• Average Annual Gross Revenue:  $3,578,371
• Median Annual Gross Revenue:  $3,144,507
• Number and Percent at or Above Average:  4/31%
• Lowest Annual Gross Revenue:  $2,091,049
• Highest Annual Gross Revenue:  $6,286,293

Part 3 – Average Annual Gross Revenue in Calendar Year 2025 by Vintage (Adaptive-Reuse Schools Only)

• Part 3 of this Item 19 presents AGR data in Calendar Year 2025 for all eight Adaptive-Reuse Schools that opened between January 1, 2022 and December 31, 2024.

• Primrose Schools excluded (a) 15 Schools that opened during this period that acquired Conversion Schools, since those schools had previously operated under other brands, (b) one School that opened and closed during this timeframe, (c) two Primrose on Premise Schools that opened during such period, since they are not representative of a typical School, and (d) 36 Newly-Constructed Schools that opened during such period.

• The eight Conversion Schools are located in the following markets: Boston, Chicago, Dallas, Nashville, New York City/New Jersey (2), Philadelphia, San Francisco, and Washington, DC.

2024 Vintage

• Number of Schools:  1
• Average Annual Gross Revenue:  $2,101,562
• Median Annual Gross Revenue:  $2,101,562
• Number and Percent at or Above Average:  1/100%
• Lowest Annual Gross Revenue:  $2,101,562
• Highest Annual Gross Revenue:  $2,101,562

2023 Vintage

• Number of Schools:  3
• Average Annual Gross Revenue:  $3,424,789
• Median Annual Gross Revenue:  $2,991,350
• Number and Percent at or Above Average:  1/33%
• Lowest Annual Gross Revenue:  $1,718,873
• Highest Annual Gross Revenue:  $5,564,134

2022 Vintage

• Number of Schools:  4
• Average Annual Gross Revenue:  $5,125,427
• Median Annual Gross Revenue:  $4,941,008
• Number and Percent at or Above Average:  2/50%
• Lowest Annual Gross Revenue:  $4,333,398
• Highest Annual Gross Revenue:  $6,286,293

Part 4 – Average Gross Revenue and Pre-Registrations Grouped by Number of Pre-Registrations

• Part 4 of this Item 19 presents AGR data for the same 44 Schools described in Part 2 above (the new Schools opened between January 1, 2022 and December 31, 2024) in their first year of operation and in Calendar Year 2025. Primrose Schools excluded (a) 15 Schools that opened during this period that acquired Conversion Schools, since those schools had previously operated under other brands, (b) one School that opened and closed during this timeframe, and (c) two Primrose on Premise Schools that opened during such period, since they are not representative of a typical School.

• For purposes of this Section, the 44 Schools are grouped into thirds based on the number of students registered for enrollment prior to opening (“Pre-Registrations”).

Top Third 

• Number of Schools:  15
• Average Pre-Registrations:  207
• Average Annual Gross Revenue – First Year:  $2,441,092
• Average Annual Gross Revenue – 2025:  $3,122,440
• Number of Schools Opened in 2022:  6
• Number of Schools Opened in 2023:  6
• Number of Schools Opened in 2024:  3

Middle Third 

• Number of Schools:  15
• Average Pre-Registrations:  69
• Average Annual Gross Revenue – First Year:  $1,725,008
• Average Annual Gross Revenue – 2025:  $2,649,122
• Number of Schools Opened in 2022:  3
• Number of Schools Opened in 2023:  5
• Number of Schools Opened in 2024:  7

Bottom Third 

• Number of Schools:  14
• Average Pre-Registrations:  15
• Average Annual Gross Revenue – First Year:  $1,567,708
• Average Annual Gross Revenue – 2025:  $2,395,685
• Number of Schools Opened in 2022:  4
• Number of Schools Opened in 2023:  4
• Number of Schools Opened in 2024:  6

Part 5  – Profit and Loss Statement for Calendar Year 2025 for Included Schools Grouped by Average Occupancy Rate

• Part 5 includes data from 405 Schools that were active franchises throughout the entire Calendar Year 2025 (out of 558 Schools that were open franchises as of the end of Calendar Year 2025) (the “Included Schools”). It does not include (i) 33 Schools that opened during Calendar Year 2025, (ii) five Primrose on Premise Schools, and (iii) 115 Schools that did not submit any profit and loss data for Calendar Year 2025.

• In the tables, the Included Schools were divided into quartiles based on the Average Occupancy Rates of each School.

• Part 5 shows profit and loss information for all 405 Included Schools.

• Primrose Schools has not included rent expenses and EBITDA in this section, because 48 of these Schools did not report any rent expenses. The Schools that do not report rent typically own their own real estate.

• In Part 6, Primrose Schools has included profit and loss statements that include rent and EBITDA for the 357 Schools that reported rent expenses.

Top Quartile (Average)

• Number of Schools:  102
• Occupancy Rate:  94%
• Annual Gross Revenue:  $3,563,781 (100.0%)
• Total Payroll and Taxes:  $1,527,512 (42.9%)
• Advertising and Royalty:  $357,938 (10.0%)
• Total Other Expenses:  $411,264 (11.5%)
• School Operating Expenses:  $170,875 (4.8%)
• Total Expenses:  $2,467,590 (69.2%)
• EBITDAR:  $1,096,191 (30.8%)

Second Quartile (Average)

• Number of Schools:  101
• Occupancy Rate:  83%
• Annual Gross Revenue:  $3,204,578 (100.0%)
• Total Payroll and Taxes:  $1,434,374 (44.8%)
• Advertising and Royalty:  $316,293 (9.9%)
• Total Other Expenses:  $363,597 (11.3%)
• School Operating Expenses:  $167,944 (5.2%)
• Total Expenses:  $2,282,208 (71.2%)
• EBITDAR:  $922,370 (28.8%)

Third Quartile (Average)

• Number of Schools:  101
• Occupancy Rate:  71%
• Annual Gross Revenue:  $2,572,341 (100.0%)
• Total Payroll and Taxes:  $1,186,327 (46.1%)
• Advertising and Royalty:  $261,396 (10.2%)
• Total Other Expenses:  $326,775 (12.7%)
• School Operating Expenses:  $148,376 (5.8%)
• Total Expenses:  $1,922,874 (74.8%)
• EBITDAR:  $649,467 (25.2%)

Bottom Quartile (Average)

• Number of Schools:  101
• Occupancy Rate:  52%
• Annual Gross Revenue:  $1,907,445 (100.0%)
• Total Payroll and Taxes:  $882,546 (46.3%)
• Advertising and Royalty:  $190,996 (10.0%)
• Total Other Expenses:  $221,520 (11.6%)
• School Operating Expenses:  $129,307 (6.8%)
• Total Expenses:  $1,424,368 (74.7%)
• EBITDAR:  $483,076 (25.3%)

All (Average)

• Number of Schools:  405
• Occupancy Rate:  75%
• Annual Gross Revenue:  $2,812,036 (100.0%)
• Total Payroll and Taxes:  45.0%
• Advertising and Royalty:  10.0%
• Total Other Expenses:  11.8%
• School Operating Expenses:  5.6%
• Total Expenses:  72.5%
• EBITDAR:  27.5%

Part 6  – Profit and Loss Statement with Rent for Calendar Year 2025 for Rent Reporting Schools Grouped by Average Occupancy Rate

• The following tables set forth the historical average profit and loss statements for certain Schools based on information reported to Primrose Schools by its franchisees.

• Part 6 includes data from 357 Schools that were active franchises throughout the entire Calendar Year 2025 that reported rent expenses (out of 558 Schools that were open franchises as of the end of Calendar Year 2025) (the “Rent Reporting Schools”). It does not include (i) 33 Schools that opened during Calendar Year 2025, (ii) five Primrose on Premise Schools, (iii) 115 Schools that did not submit any profit and loss data for Calendar Year 2025, and (iv) 48 Included Schools that did not report rent expenses for Calendar Year 2025.

• The Rent Reporting Schools are a subset of the Included Schools described in Part 5.

• In the tables, the Rent Reporting Schools were divided into quartiles based on the Average Occupancy Rates of each School.

Top Quartile (Average)

• Number of Schools:  89
• Occupancy Rate:  94%
• Annual Gross Revenue:  $3,557,271 (100.0%)
• Total Payroll and Taxes:  $1,515,385 (42.6%)
• Advertising and Royalty:  $358,173 (10.1%)
• Total Other Expenses:  $408,289 (11.5%)
• School Operating Expenses:  $168,154 (4.7%)
• Rent:  $338,305 (9.5%)
• Total Expenses:  $2,788,305 (78.4%)
• EBITDA:  $768,966 (21.6%)

Second Quartile (Average)

• Number of Schools:  89
• Occupancy Rate:  83%
• Annual Gross Revenue:  $3,242,538 (100.0%)
• Total Payroll and Taxes:  $1,436,181 (44.3%)
• Advertising and Royalty:  $317,682 (9.8%)
• Total Other Expenses:  $360,798 (11.1%)
• School Operating Expenses:  $170,628 (5.3%)
• Rent:  $381,071 (11.8%)
• Total Expenses:  $2,666,361 (82.2%)
• EBITDA:  $576,178 (17.8%)

Third Quartile (Average)

• Number of Schools:  89
• Occupancy Rate:  71%
• Annual Gross Revenue:  $2,594,458 (100.0%)
• Total Payroll and Taxes:  $1,169,228 (45.1%)
• Advertising and Royalty:  $264,121 (10.2%)
• Total Other Expenses:  $316,025 (12.2%)
• School Operating Expenses:  $149,751 (5.8%)
• Rent:  $352,510 (13.6%)
• Total Expenses:  $2,251,635 (86.8%)
• EBITDA:  $342,824 (13.2%)

Bottom Quartile (Average)

• Number of Schools:  90
• Occupancy Rate:  53%
• Annual Gross Revenue:  $1,956,524 (100.0%)
• Total Payroll and Taxes:  $913,076 (46.7%)
• Advertising and Royalty:  $194,577 (9.9%)
• Total Other Expenses:  $229,549 (11.7%)
• School Operating Expenses:  $133,018 (6.8%)
• Rent:  $326,603 (16.7%)
• Total Expenses:  $1,796,822 (91.8%)
• EBITDA:  $159,702 (8.2%)

All (Average)

• Number of Schools:  357
• Occupancy Rate:  75.2%
• Annual Gross Revenue:  $2,837,698 (100.0%)
• Total Payroll and Taxes:  44.7%
• Advertising and Royalty:  10.0%
• Total Other Expenses:  11.6%
• Rent:  12.9%
• School Operating Expenses:  5.6%
• Total Expenses:  84.8%
• EBITDA:  15.2%

Section VI – Primrose Schools Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️