The Learning Experience Franchise Review 2025: Costs, Fees, News, Average Revenues and/or Profits

The Learning Experience is a preschool and daycare franchise, offering care and education to children from six weeks to six years old. Its award-winning curriculum supports learning, play, and growth through hands-on activities designed to encourage intellectual, cognitive, and social development. While built around a well-established curriculum, routines are personalized to the needs of individual children, and there’s specific support for the transitions from one stage in daycare to another, a disruptive period that many children find difficult.

Franchises communicate actively and regularly with families to provide reassurance and up-to-date information about how their young ones are getting on, so it might suit a people-focused franchisee with experience of or an interest in childhood development.

Busy lives and concern for giving their children the best opportunities mean that the Learning Experience is one of America’s fastest growing learning franchises, with over 600 centers open or being developed. The franchise takes an unusual approach to this expansion, researching high-growth areas, sourcing suitable locations, and partnering with developers to set up centers ready for franchisees, so it might be a good fit for an entrepreneur who’s intimidated by the process of finding and building an outlet, but who wants the satisfaction that comes from running a meaningful, socially supportive enterprise.

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

Section I – Estimated initial investment (franchise costs) for The Learning Experience franchise, based on Item 7 of the company’s 2025 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Learning Experience franchise, based on Items 5 and 6 of the company’s 2025 FDD

Section III – Number of franchised and company-owned The Learning Experience outlets at the start of the year and the end of the year for 2022, 2023, and 2024, based on Item 20 of the company’s 2025 FDD

Section IV – News updates on The Learning Experience franchise opportunity

Section V – Presentation and analysis of The Learning Experience’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:

• 2022, 2023, and 2024 average and median gross sales for the franchised and company-owned (separately stated) Learning Experience centers that were open for more than 48 months as of December 31 of the applicable year (“Mature Centers”)

• 2022, 2023, and 2024 average and median gross sales for the franchised and company-owned (separately stated) Learning Experience centers that were open 24-47 months as of December 31 of the applicable year (“Intermediate Centers”)

• 2024 average revenue, royalties, gross profit, salaries and benefits, school supplies, advertising, utilities and repairs, admin expenses, miscellaneous expense, total expenses, and EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) for the 16 company-owned Mature Centers that corporate owned the entire year in 2024

Section VI – Key ratios, comparables, computations, and analyses for The Learning Experience franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Learning Experience Franchise Costs

• The Learning Experience franchise costs (for new centers with Site Development Service Charge Addenda), based on Item 7 of the company’s 2025 FDD:

• Franchise Fee:  $60,000
• SDSC Fee – Only for Site Development:  $250,000 to $302,500
• Lease Security Deposits:  $15,000 to $150,000
• Insurance Premiums:  $3,500 to $18,000
• Assignor Security Deposit:  $20,000 to $50,000
• Organizational Expenses:  $1,000 to $2,500
• Software Service Fee for 6 Months:  $3,150 (at $525/month)
• Pre-paid Rent for Up to 3 Months:  $0 to $150,000
• Opening Marketing Efforts:  $40,000 to $55,000
• Initial Computer Set-Up Fee:  $2,999
• Payments/Security Deposits to Utility Provider (heat, gas, electric, water, sewer, telephone, and internet service):  $500 to $5,000
• Local and State Licenses and Permits:  $400 to $2,000
• Travel/Lodging for Staff Training:  $2,500 to $15,000
• Initial Employee Salaries for 6 Months:  $100,000 to $175,000
• Curriculum:  $500 to $3,850
• Food/Paper/Expendables:  $1,250 to $3,500
• Miscellaneous:  $0 to $70,000
• Additional Funds – Operating Expenses for 6 Months:  $275,000 to $400,000
• L.E.A.P. Interactive Setup Fee (per whiteboard):  $5,000 to $8,800
• Total Estimated The Learning Experience Franchise Costs:  $780,799 to $1,477,299

Section II – The Learning Experience’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Learning Experience’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:

• Franchise Fee:  $60,000
• Royalties:  7% of the Center’s Gross Revenue, which includes all revenue related to the Center
• Brand Awareness Fund:  currently, 1% of Gross Revenue. The Learning Experience has the right to increase the minimum payment up to 2.5% of Gross Revenue.

Section III – Number of Franchised and Company-Owned The Learning Experience Outlets

Franchised

2022

• Outlets at the Start of the Year:  269
• Outlets at the End of the Year:  301
• Net Change:  +32

2023

• Outlets at the Start of the Year:  301
• Outlets at the End of the Year:  326
• Net Change:  +25

2024

• Outlets at the Start of the Year:  326
• Outlets at the End of the Year:  386
• Net Change:  +60

Company-Owned

2022

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  38
• Net Change:  +5

2023

• Outlets at the Start of the Year:  38
• Outlets at the End of the Year:  40
• Net Change:  +2

2024

• Outlets at the Start of the Year:  40
• Outlets at the End of the Year:  31
• Net Change:  -9

Section IV – News Updates on The Learning Experience Franchise

• Harvest Partners Announces Acquisition of The Learning Experience

• The Learning Experience Sets Record in New Location Openings in 2024

• The Learning Experience Launches Happy Hub with New Teacher Onboarding Program, Happiness Index Powered by Blink

• The Learning Experience Opens Its 50th Location of 2024 in Fresno

• IFA Names Richard Weissman of The Learning Experience as 2024 Entrepreneur of the Year

• The Learning Experience Academy of Early Education Ranked No. 25 on Entrepreneur’s 2025 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Learning Experience Franchise (Item 19, 2025 FDD)

Part 1 – Average Gross Sales for Certain Franchised and Company-Owned Centers for January 1, 2022 to December 31, 2024

• The following tables directly below set forth the historical average annual revenue during the fiscal period between January 1, 2022 and December 31, 2024 for centers that had been open for at least 24 months as of the fiscal end date in 2022, 2023, and 2024.

• As of December 31, 2022, there were 339 centers in the United States, 239 of which had been open for at least 24 months. As of December 31, 2023, there were 366 centers in the United States, 296 of which had been open for at least 24 months. As of December 31, 2024, there were 417 centers in the United States, 324 of which had been open for at least 24 months.

• The tables below include franchise and company-owned centers.

• The information below is divided into subsets by center type: Centers that were open for more than 48 months (“Mature Centers”) and Centers that were open for 24-47 months (“Intermediate Centers”), as follows:

A.  Mature Centers

Mature Franchise Centers

2022

• Number of Centers:  173
• Average Gross Sales:  $1,979,344
• Number and Percentage of Centers That Exceeded the Average:  81 (46.8%)
• Median Gross Sales:  $1,961,141

2023

• Number of Centers:  197
• Average Gross Sales:  $2,034,763
• Number and Percentage of Centers That Exceeded the Average:  99 (50.3%)
• Median Gross Sales:  $2,038,148

2024

• Number of Centers:  232
• Average Gross Sales:  $2,163,703
• Number and Percentage of Centers That Exceeded the Average:  116 (50.0%)
• Median Gross Sales:  $2,160,607

Mature Company-Owned Centers

2022

• Number of Centers:  19
• Average Gross Sales:  $2,090,734
• Number and Percentage of Centers That Exceeded the Average:  9 (47.4%)
• Median Gross Sales:  $2,082,642

2023

• Number of Centers:  18
• Average Gross Sales:  $2,269,149
• Number and Percentage of Centers That Exceeded the Average:  9 (50.0%)
• Median Gross Sales:  $2,269,043

2024

• Number of Centers:  16
• Average Gross Sales:  $2,641,927
• Number and Percentage of Centers That Exceeded the Average:  7 (43.8%)
• Median Gross Sales:  $2,460,136

B. Intermediate Centers

Intermediate Franchise Centers

2022

• Number of Centers:  55
• Average Gross Sales:  $1,861,522
• Number and Percentage of Centers That Exceeded the Average:  30 (54.5%)
• Median Gross Sales:  $1,901,758

2023

• Number of Centers:  69
• Average Gross Sales:  $1,766,829
• Number and Percentage of Centers That Exceeded the Average:  38 (55.1%)
• Median Gross Sales:  $1,825,419

2024

• Number of Centers:  65
• Average Gross Sales:  $1,863,709
• Number and Percentage of Centers That Exceeded the Average:  35 (53.8%)
• Median Gross Sales:  $1,888,521

Intermediate Company-Owned Centers

2022

• Number of Centers:  6
• Average Gross Sales:  $1,898,665
• Number and Percentage of Centers That Exceeded the Average:  4 (66.7%)
• Median Gross Sales:  $1,997,189

2023

• Number of Centers:  12
• Average Gross Sales:  $1,532,296
• Number and Percentage of Centers That Exceeded the Average:  4 (33.3%)
• Median Gross Sales:  $1,462,942

2024

• Number of Centers:  11
• Average Gross Sales:  $1,615,902
• Number and Percentage of Centers That Exceeded the Average:  5 (45.5%)
• Median Gross Sales:  $1,521,312

Part 2 – Average Annual Gross Sales, Selected Expenses, and EBITDAR for Mature Company-Owned Centers for January 1, 2024 to December 31, 2024

• The table below reflects the average annual gross sales, selected expenses, and EBITDAR (which means “earnings before interest, taxes, depreciation, amortization, and gross rent”) for the 16 Mature Company-Owned Centers that corporate owned the entire year in 2024.

• All numbers are reported in thousands.

Average

Revenue:  $2,671.38 (100.0%)

Less: Royalties:  $186.88 (7.0%)

Gross Profit:  $2,484.50 (93.0%)

Operating Expenses

• Salaries and Benefits:  $1,357.62 (50.8%)
• School Supplies:  $141.56 (5.3%)
• Advertising:  $52.56 (2.0%)
• Utilities and Repairs:  $124.44 (4.7%)
• Admin Expenses:  $58.94 (2.2%)
• Miscellaneous Expense:  $41.94 (1.6%)
• Total Expenses:  $1,777.06 (66.5%)

EBITDAR:  $707.44 (26.5%)

• “Gross Sales” includes cash and credit sales for goods and services provided, but does not include sales or use taxes.

• The Gross Sales information is reported to the franchisor by each Franchised Center for royalty reporting. The franchisor has not audited the Gross Sales reports and it has not verified (i) the accuracy of the information or (ii) whether such information was prepared in accordance with generally accepted accounting principles. The franchisor does not believe that any Center overstated Gross Sales nor does it believe that any Mature Company-Owned Center understated the selected expenses.

• In Part 2, the franchisor has not included any cost and expense data related to any Franchised Centers because it does not have the ability to poll such data through its point of sale system and its franchisee reports are not handled in a consistent manner.

• This means the earnings claims figures for Franchised Centers do not reflect the costs 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.

• You should conduct an independent investigation of the costs and expenses you will incur in operating your Center. Franchisees or former franchisees listed in the Disclosure Document may be one source of this information.

• The franchisor has no reason to believe that comparable expense categories and EBITDAR of Mature Franchised Centers materially differ from those presented for Mature Company-Owned Centers. Company-Owned Centers may be able to take advantage of economies of scale not available to franchisees.

• The information in Part 2 is based on the actual results for the Mature Company-Owned Centers, as maintained in the franchisor’s corporate accounting records. The franchisor uses generally-accepted accounting principles in maintaining its records. The franchisor has not audited, confirmed, or verified this information.

• You will incur expenses that are not identified in Part 2. For example, base rent, CAM charges, property taxes and lease administration fees, interest, income taxes, depreciation, and amortization are not deducted in arriving at EBITDAR.

• Part 2 reflects a deduction for royalties in the amount of 7% of Gross Sales, as well as the LEAP Interactive Fee, Software Fee, and Lease Administration Fee; however, Company-Owned Centers do not pay a royalty fee but do contribute to the Brand Awareness Fund at the same rate as franchisees; namely, 1% of Gross Sales.

• The Mature Company-Owned Centers spent between 1% and 5% on marketing and advertising.

• The information in Part 1 does not include centers that closed during the reporting year. In Part 1, the “center type” is as of December 31, 2024. For example, if a center was converted from a Company-Owned Center to a Franchised Center during the reporting period, but prior to December 31, 2024, the center is categorized as a Franchised Center in Part 1.

Section VI – The Learning Experience Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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