Ivybrook Academy franchise unit economics
Ivybrook Academy franchisees run half-day preschools that charge tuition for children aged 1 to 6, with optional private kindergarten classes and summer camps.
Ivybrook Academy franchise at a glance
Ivybrook Academy’s Item 19 reports 2025 gross revenue for 27 franchised schools open 24 months or more and for 21 schools open 36 months or more, with no cost or profit figures.
Ivybrook Academy schools open 24 months or more, 27 of them, averaged $933,598 of gross revenue in 2025, with a median of $852,482, according to Item 19 of Ivybrook Academy’s 2026 FDD, issued 4 June 2026. The 27 in that group are 55%* of Ivybrook Academy’s 49 franchised schools. Fees paid to Ivybrook Academy come to about 9.32%* of sales.
- An Ivybrook Academy franchise costs $643,400 to $1,174,500 to open, an estimate that assumes a tenant improvement allowance from the landlord.
- Ivybrook Academy charges a royalty of 7% of Gross Revenue and a Brand Development Fund contribution of 2%, up from 1% on January 1, 2026.
- Ivybrook Academy requires local marketing of at least 1% of Gross Revenue and charges a $250 monthly technology fee.
- Ivybrook Academy schools open 36 months or more, 21 of them, averaged $1,029,405 in 2025, with a median of $1,009,387.
- Ivybrook Academy had 49 franchised schools and 1 affiliate-owned school at the end of 2025, up from 26 franchised schools at the start of 2023.
These figures come from Ivybrook Academy's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 9.32% is an Averan calculation: 7% royalty and 2% brand fund applied to the $933,598 average for schools open 24 months or more, plus $3,000 a year of technology fees, divided by $933,598. Local marketing spent by the franchisee is not included.
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Talk to Averan → Averan Ivybrook Academy Conversion Package →- The 21 schools open 36 months or more averaged $1,029,405, 10.3% above the 27-school average. Their median was $1,009,387 and their lowest school $538,305.* The 36-month group is part of the 24-month group, so the two averages overlap.
- The 6 schools open 24 to 36 months averaged about $598,274 in 2025. That figure is Averan’s subtraction of the 21 older schools from the 27.* The 21 older schools averaged 72.1% more.* These are different schools in the same year, not one school tracked over time.
- Item 19 publishes gross revenue only. Note 5 states that it contains no information on costs, expenses or profitability, and that a school with higher revenue may not be more profitable than one with lower revenue.
- The investment estimate assumes a tenant improvement allowance of $0 to $60 a square foot. On a space of 6,000 to 7,000 square feet, the top of that range is $420,000.* Item 7 states that not every landlord grants an allowance, and the estimate excludes sitework, permits and entitlement costs.
- Franchised schools went from 26 to 49 between the start of 2023 and the end of 2025. Item 20 reports 26 openings and 3 schools that ceased operations, one a year in Texas, with no terminations, non-renewals or reacquisitions.
Gross revenue
How much does an Ivybrook Academy franchise make?
| Group | Schools | Average | Median | Highest | Lowest |
|---|---|---|---|---|---|
| Open 24 months or more | 27 | $933,598 | $852,482 | $1,525,692 | $368,404 |
| Open 36 months or more | 21 | $1,029,405 | $1,009,387 | $1,525,692 | $538,305 |
| Open 24 to 36 months * | 6 | $598,274 | not published | not published | not published |
Source: Item 19, Table 1, 2026 FDD, for January 1 to December 31, 2025. The last row is an Averan calculation, marked *: (27 × $933,598 − 21 × $1,029,405) ÷ 6. It assumes the 21 schools open 36 months or more are all in the 27-school group, which follows from the group definitions.
The 27 franchised schools open 24 months or more averaged $933,598 of gross revenue in 2025. The median school in that group reported $852,482. The highest reported $1,525,692 and the lowest $368,404. Gross revenue is all revenue of the school before costs, less refunds and sales taxes, and the figures come from franchisee reports that the franchisor has not audited.
The 21 schools open 36 months or more averaged $1,029,405, with a median of $1,009,387. In that group the median is 98.1% of the average, against 91.3% in the 24-month group.* The lowest school in the 36-month group reported $538,305.
The 6 schools open 24 to 36 months averaged about $598,274.* Item 19 does not print this group; it is Averan’s arithmetic on the two printed averages. The 21 older schools averaged 72.1% more than these 6.* The comparison is between different schools in 2025, so it does not show how any one school grew.
Item 19 contains no cost, expense or profit information. Note 5 states that a school with higher revenue may not be more profitable than a school with lower revenue. Rent, teacher wages, the brand charges and local marketing all come out of gross revenue.
Revenue thresholds
Share of schools above each revenue level, 2025
| Gross revenue above | Open 24 months or more (27) | Open 36 months or more (21) | Difference * |
|---|---|---|---|
| $750,000 | 70% | 81% | 11 points |
| $1,000,000 | 41% | 52% | 11 points |
| $1,250,000 | 30% | 38% | 8 points |
Source: Item 19, Table 2, 2026 FDD. Percentages are rounded to the nearest whole number by the franchisor. The last column is an Averan subtraction, marked *.
Item 19 splits schools by revenue threshold, not into quartiles or bands. It publishes the share of each group above $750,000, $1,000,000 and $1,250,000, plus each group’s average, median, highest and lowest.
41% of the 27 schools open 24 months or more exceeded $1,000,000 of gross revenue in 2025. In the 21 schools open 36 months or more, the share was 52%. 30% of the 24-month group and 38% of the 36-month group exceeded $1,250,000.
The highest school in both groups reported $1,525,692. In the 24-month group that is 4.1 times the lowest school; in the 36-month group it is 2.8 times.*
27 of the 49 franchised schools open at the end of 2025 are in the figures, or 55.1%.* Of 31 schools eligible for the 24-month group, 4 were left out for incomplete reporting or not meeting the criteria; of 23 eligible for the 36-month group, 2 were left out. The franchisor states that none were excluded on the basis of financial performance.
Brand charges
Brand charges
| Charge | Rate in Item 6 | At the $933,598 average * |
|---|---|---|
| Royalty | 7% of Gross Revenue, monthly | $65,352 |
| Brand Development Fund | 2% of Gross Revenue, monthly (1% before January 1, 2026) | $18,672 |
| Technology fee | $250 a month | $3,000 |
| Marketing cooperative | Up to 2% of Gross Revenue; none formed | not charged today |
| Paid to the brand | 9% of Gross Revenue plus $250 a month | $87,024 (9.32% of sales) |
| Local marketing, spent by the franchisee | At least 1% of Gross Revenue; in the first 12 months, at least the greater of $1,250 a month or 1% | $9,336 |
Source: Item 6, 2026 FDD. Dollar amounts and the total percentage are Averan calculations, marked *, applying the Item 6 rates to the Item 19 average of $933,598 for schools open 24 months or more.
The franchisor charges a 7% royalty, a 2% Brand Development Fund contribution and a $250 monthly technology fee. The franchisee must also spend at least 1% of Gross Revenue on local marketing. At the 24-month average the charges paid to the franchisor come to about $87,024 a year, or 9.32% of sales, and the local marketing to $9,336.* At the 36-month average of $1,029,405 the charges paid to the franchisor come to about $95,646, or 9.29%.*
The Brand Development Fund rate rose from 1% to 2% of Gross Revenue on January 1, 2026. The 2025 revenue figures in Item 19 were earned under the 1% rate. At the 24-month average the extra point is about $9,336 a year.*
In the first 12 months after opening, local marketing must be at least the greater of $1,250 a month or 1% of Gross Revenue. That is at least $15,000 for the year, and the $1,250 minimum applies until monthly revenue passes $125,000, or $1,500,000 a year.*
The franchisor may require a marketing cooperative with contributions of up to 2% of Gross Revenue. None exists today. Other charges are event-based: a $10,000 transfer fee, a $10,000 transfer training fee, a renewal fee of the greater of $10,000 or 10% of the then-current initial fee, and non-compliance cure costs at the franchisor’s costs plus 10%.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $50,000 | $50,000 |
| Training and opening support fee | $15,000 | $15,000 |
| Real estate and facility coordination fee | $10,000 | $10,000 |
| Construction and leasehold improvements | $350,000 | $775,000 |
| Furniture, fixtures, classroom equipment and decor | $75,000 | $110,000 |
| Outdoor classroom (playground equipment) | $25,000 | $40,000 |
| Signage | $8,000 | $14,000 |
| Computer hardware and software | $1,000 | $2,500 |
| Rent deposit | $15,000 | $25,000 |
| Utility deposits | $1,000 | $2,500 |
| Insurance deposits and premiums | $3,000 | $8,500 |
| Pre-opening travel | $400 | $2,000 |
| Grand opening advertising | $35,000 | $50,000 |
| Professional fees | $25,000 | $35,000 |
| Additional funds, 3 months | $30,000 | $35,000 |
| Total | $643,400 | $1,174,500 |
Source: Item 7, 2026 FDD. The cover page states that $83,500 of the total is paid to the franchisor or its affiliates: the three fees above plus an $8,500 decor package inside the furniture line.
An Ivybrook Academy franchise costs $643,400 to $1,174,500 to open. Construction and leasehold improvements are the largest line, at $350,000 to $775,000, which is 54.4% of the low total and 66.0% of the high total.* $83,500 is paid to the franchisor or its affiliates, 13.0% of the low total.*
The construction estimate assumes a tenant improvement allowance of about $0 to $60 a square foot on 6,000 to 7,000 square feet. At the top of that range the allowance is $420,000.* Item 7 states that not every landlord grants one. The estimate also excludes sitework, government approvals, permits and entitlement costs, and assumes the space already has HVAC, plumbing and electrical systems.
The franchisee must spend at least $35,000 on pre-opening marketing. Item 7 estimates $35,000 to $50,000, paid to approved suppliers, separate from local marketing and Brand Development Fund contributions. Additional funds of $30,000 to $35,000 cover the first 3 months.
Item 11 puts the typical time from signing to opening at 12 to 18 months. The franchisor may terminate if the school is not open within 18 months. The territory is the lesser of a population of 125,000 or a three-mile radius around the school. The term is 15 years, with two renewals of 10 years each. Each school must gain NAEYC accreditation once eligible after two years of operation.
The initial franchise fee is $50,000 for the first school, $40,000 for the second and $30,000 for the third and each after. Under a Development Agreement the franchisee pays a $20,000 deposit for each additional school, credited against that school’s fee. Buying an existing school replaces the initial fee with a $10,000 transfer training fee.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | Franchised at end | Affiliate-owned at end | Transfers |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 26 | 8 | 0 | 0 | 0 | 1 | 33 | 1 | 0 |
| 2024 | 33 | 8 | 0 | 0 | 0 | 1 | 40 | 1 | 0 |
| 2025 | 40 | 10 | 0 | 0 | 0 | 1 | 49 | 1 | 5 |
| 2023–2025 | 26 | 26 | 0 | 0 | 0 | 3 | 49 | 1 | 5 |
Source: Item 20, Tables 1 to 4, 2026 FDD. The 2023–2025 openings and ceased totals are Averan sums of the yearly figures. The affiliate-owned school in North Carolina is owned by McWilliams Education Services, LLC.
Franchised schools went from 26 at the start of 2023 to 49 at the end of 2025. That is an increase of 88.5%.* 26 schools opened over the three years and 3 ceased operations for other reasons, one a year, all in Texas. There were no terminations, non-renewals or reacquisitions.
By the June 4, 2026 issuance date there were 52 franchised schools. Five opened in 2026, in Arizona, Georgia, North Carolina, New Hampshire and Virginia, and two schools in Texas ceased operations.
33 franchise agreements were signed for schools not yet open at the end of 2025. Item 20 projects 13 franchised openings in 2026. By the issuance date, 61 agreements had been signed for schools not yet open.
5 franchised schools changed owners in 2025. Item 20 reports no transfers in 2023 or 2024. One school, in Weddington, North Carolina, is owned by a franchisor affiliate and has been throughout the three years.
Questions we get asked
Questions owners ask
How much does it cost to open an Ivybrook Academy franchise?
The 2026 FDD estimates $643,400 to $1,174,500, including the $50,000 initial franchise fee and 3 months of additional funds. The estimate assumes a tenant improvement allowance of about $0 to $60 a square foot, which not every landlord grants, and excludes sitework, permits and entitlement costs.
What fees does an Ivybrook Academy franchisee pay?
A royalty of 7% of Gross Revenue, a Brand Development Fund contribution of 2%, a $250 monthly technology fee, and at least 1% of Gross Revenue spent on local marketing. At the 2025 average for schools open 24 months or more, the charges paid to the franchisor come to about $87,024 a year, or 9.32% of sales, on Averan’s calculation.*
How much does an Ivybrook Academy school make?
The 27 franchised schools open 24 months or more averaged $933,598 of gross revenue in 2025, with a median of $852,482. The 21 schools open 36 months or more averaged $1,029,405, with a median of $1,009,387. Item 19 gives no cost or profit figures.
How many Ivybrook Academy schools are there?
Item 20 reports 49 franchised schools and 1 affiliate-owned school at the end of 2025. The franchisor states there were 52 franchised schools open on June 4, 2026, and 61 signed agreements for schools not yet open.
Does the Ivybrook Academy FDD show profit?
No. Item 19 presents gross revenue only and states that it includes no information on costs, expenses or profitability. A buyer would need to build cost estimates for rent, teacher wages and the brand charges separately.
How long does it take to open an Ivybrook Academy school?
Item 11 estimates 12 to 18 months from signing the franchise agreement to opening. The franchisor may terminate the agreement if the school has not opened within 18 months.
Questions worth putting to Ivybrook Academy
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Ivybrook Academy see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Ivybrook Academy locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for an Ivybrook Academy owner
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Other brands in the Early Education And Child Care guide: Building Kidz School · Celebree School · Kiddie Academy · Lightbridge Academy · Primrose Schools · Soccer Shots · The Goddard School · The Learning Experience.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Ivybrook Franchising, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Ivybrook Academy is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Ivybrook Franchising, LLC, 2026 Franchise Disclosure Document, issued 4 June 2026.