Primrose Schools Franchise FDD, Profits & Costs (2025)
Primrose Schools, founded in 1982, is a well-established leader in the early childhood education industry, headquartered in Atlanta, Georgia.
The franchise began offering franchising opportunities in 1988. Primrose Schools is recognized for its unique educational approach called Balanced Learning®, which combines teacher-guided and child-initiated activities to foster learning through play and exploration.
Distinguished by its high standards in educational quality and care, Primrose Schools offers franchisees a proven business model in a financially rewarding and emotionally satisfying sector.
The franchise’s commitment to excellence has earned it accolades from various business publications, highlighting its status as a premier franchising opportunity.
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Initial Investment
How much does it cost to start a Primrose Schools franchise? It costs on average between $743,000 – $8,595,000 to start a Primrose Schools franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property. Primrose Schools offers 5 types of franchises:
| Program | Initial Investment Range |
|---|---|
| Real Estate Development Program | $5,788,200 to $8,595,000 |
| Build-to-Suit Program | $742,900 to $1,525,000 |
| Permanent Lease Program | $2,256,300 to $4,899,200 |
| Independent Development Program | $5,758,200 to $8,550,000 |
| Site First Program | $826,900 to $1,405,000 |
We are summarizing below the main costs associated with opening a Primrose Schools Real Estate Development Program franchised facility. For more information on costs required to start a Primrose Schools franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Low – High) |
|---|---|
| Initial Fee | $50,000 – $80,000 |
| Real Estate Fee Deposit | $25,000 |
| Balance of Real Estate Fee | $30,000 – $45,000 |
| Other Real Estate and Development Costs | $4,827,300 – $7,040,000 |
| Utility Security Deposits | $10,000 – $30,000 |
| School Equipment and Supplies | $313,000 – $383,000 |
| Insurance | $5,000 – $20,000 |
| Initial Training Fee | $35,000 |
| Marketing, Advertising and Grand Opening | $40,000 – $105,000 |
| Transportation Vehicle | $900 – $50,000 |
| Licenses | $4,000 – $7,000 |
| Miscellaneous | $10,000 – $45,000 |
| Financing Cost | $258,000 – $310,000 |
| Additional Funds – 3 months | $180,000 – $420,000 |
| TOTAL | $5,788,200 – $8,595,000 |
Average Revenue (AUV)
How much revenue can you make with a Primrose Schools franchise? A Primrose Schools franchised facility makes on average $2,622,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,774,000 yearly revenue for similar preschool franchises. Below are 10 Primrose Schools competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Primrose Schools Franchise Disclosure Document
Frequently Asked Questions
How many Primrose Schools locations are there?
As of the latest data, Primrose Schools operates 483 franchise-owned locations and 0 company-owned locations. This reflects the brand’s strong reliance on independent franchisees to drive its growth across 34 states in the U.S.
What is the total investment required to open a Primrose Schools franchise?
The total investment required to open a Primrose Schools franchise ranges from $743,000 to $8,595,000.
What are the ongoing fees for a Primrose Schools franchise?
Primrose Schools franchisees are required to pay a 7% royalty fee on gross revenue. Additionally, there is a marketing fee of 2% of gross revenue, which includes system-wide marketing efforts.
What are the financial requirements to become a Primrose Schools franchisee?
To become a Primrose Schools franchisee, the financial requirements are as follows: a minimum net worth of $750,000 and liquid assets of $350,000. These financial requirements ensure that potential franchisees have the necessary capital to invest in the franchise and sustain operations during the initial stages of development.
How much can a Primrose Schools franchise owner expect to earn?
The average gross sales for a Primrose Schools franchise are approximately $2.62 million per location. Assuming a 15% operating profit margin, $2.62 million yearly revenue can result in $393,000 EBITDA annually.
Who owns Primrose Schools?
Primrose Schools is owned by Roark Capital Group, a private equity firm that specializes in investing in franchise businesses. Roark Capital acquired a majority stake in Primrose Schools in 2018. Primrose Schools was founded in 1982 by Paul and Marcy Erwin, and the company operates as a leading provider of early childhood education and care through a franchise model.
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