Tierra Encantada Franchise FDD, Profits & Costs (2025)
Tierra Encantada is a Spanish immersion daycare and preschool franchise that provides care for children aged six weeks to six years. Founded in 2013 in Minneapolis, Minnesota, the company has established itself as a leader in early childhood Spanish immersion education.
Its headquarters remain in Minneapolis, reflecting its commitment to the community where it began.The franchise began expanding its unique educational model through franchising in 2019.
Tierra Encantada offers a distinctive program that combines language immersion with organic, scratch-made meals and the use of cloth diapers, catering to the holistic development of children. This approach not only addresses the growing demand for bilingual education but also appeals to families seeking environmentally conscious childcare options.
The franchise’s success is attributed to its commitment to high-quality early education, a play-based curriculum, and a nurturing environment that fosters both cognitive and social development in young children.
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Initial Investment
How much does it cost to start a Tierra Encantada franchise? It costs on average between $1,455,000 – $3,062,000 to start a Tierra Encantada franchised center.
This includes costs for construction, equipment, classroom materials, and initial operating expenses. The exact amount depends on various factors, including the type of childcare facility you establish, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount of Expenditure |
|---|---|
| Initial Franchise Fee | $48,000 – $60,000 |
| Professional Services | $66,372 – $115,080 |
| Lease, Real Estate, and Improvements | $675,222 – $1,856,899 |
| Security, Fire, Video Surveillance, and Keycard Access System | $67,280 – $117,366 |
| Outdoor Fence and Playground Area | $149,085 – $205,916 |
| Signage | $34,107 – $52,458 |
| Facility Furniture, Equipment, and Supplies | $219,157 – $270,246 |
| Computer Equipment and Software | $4,123 – $5,047 |
| Business Licenses and Certifications | $500 – $1,419 |
| Insurance | $1,597 – $16,514 |
| Initial & Grand Opening Training | $5,000 – $11,170 |
| Opening Advertising/Marketing | $35,000 – $50,000 |
| Pre-Opening Payroll Expenses | $7,467 – $24,230 |
| Additional Funds/Working Capital (Pre-Opening – First Three Months of Operation) | $142,533 – $275,770 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $1,455,443 – $3,062,115 |
Average Revenue (AUV)
How much revenue can you make with a Tierra Encantada franchise? A Tierra Encantada franchised business makes on average $2,545,000 in revenue (AUV) per year.
This compares to $1,984,000 yearly revenue for similar preschool franchises. Below are a few Tierra Encantada competitors as a comparison:
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Tierra Encantada Franchise Disclosure Document
Frequently Asked Questions
How many Tierra Encantada locations are there?
As of the latest data, Tierra Encantada operates 18 Spanish immersion daycare and preschool centers across the United States.
What is the total investment required to open a Tierra Encantada franchise?
The total investment required to open a Tierra Encantada franchise ranges from $1,455,000 to $3,062,000.
What are the ongoing fees for a Tierra Encantada franchise?
Tierra Encantada franchisees pay a 7% royalty fee on gross sales for ongoing support and a 1% marketing fee to fund national advertising efforts. These fees ensure consistent quality and brand recognition across all locations.
What are the financial requirements to become a Tierra Encantada franchisee?
To qualify as a Tierra Encantada franchisee, candidates should have a minimum net worth of $1,000,000 and liquid assets of at least $300,000. These financial criteria ensure that franchisees possess the necessary resources to manage the initial investment and sustain operations during the startup phase.
How much can a Tierra Encantada franchise owner expect to earn?
The average gross sales for a Tierra Encantada franchise are approximately $2.55 million per location. Assuming a 15% operating profit margin, $2.55 million yearly revenue can result in $383,000 EBITDA annually.
Who owns Tierra Encantada?
Tierra Encantada is owned by its founder and CEO, Kristen Denzer. In July 2024, the company received a significant minority growth investment from Susquehanna Growth Equity (SGE), marking its first institutional investment since its founding in 2013.
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