Primrose Schools franchise unit economics
Primrose Schools franchisees run licensed early-education and child-care schools that charge tuition for children from six weeks to twelve years old.
Primrose Schools franchise at a glance
Primrose Schools’ Item 19 reports 2025 revenue and capacity by occupancy quartile for 520 schools, and profit after rent by occupancy quartile for 357 schools reporting rent.
Primrose Schools franchisees averaged $2,779,923 of sales in 2025, according to Item 19 of Primrose Schools’ 2026 FDD, issued 24 April 2026. The 520 in that group are 93%* of Primrose Schools’ 557 locations. Fees paid to Primrose Schools come to about 9%* of sales. A Primrose Schools franchise costs $2,182,500 to $7,960,300 to open.
- A Primrose Schools franchise costs $2,182,500 to $7,960,300 to open, including a $80,000 initial franchise fee, according to the brand's 2026 FDD.
- Primrose Schools charges a royalty of 7% of sales and a 2% brand fund contribution.
- Primrose Schools reported 557 franchised locations in its 2026 FDD.
- Primrose Schools’ 357 rent-reporting schools had EBITDA of 16.3% of revenue in 2025 on Averan’s weighting of the FDD’s quartiles. Primrose Schools’ FDD defines EBITDA as operating earnings before interest, taxes, depreciation and amortization, after rent, payroll and royalties and before owner pay.
- At the 357 rent-reporting Primrose Schools locations, wages took 44.4% and rent and space costs took 12.3% of sales.
- Work out Primrose Schools' fees at your own sales with the minimum fee calculator.
- A Primrose Schools school is licensed for about 186 children.
These figures come from Primrose Schools' 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- One point of occupancy is worth $14,860 of profit. Revenue rises $39,043 a point between the bottom and top quartiles and profit $14,860 *, 38 cents in the dollar, or roughly $7,979 a year for each additional child enrolled.
- Revenue per enrolled child holds between $18,973 and $20,623 across all four quartiles. That is an 8.7% range * at Primrose Schools, against revenue that runs 87.8% apart.
- Rent costs the top quartile $338,305 and the bottom $326,603. The two Primrose Schools rent figures sit $11,702 apart on revenue $1,600,747 apart, so rent runs from 9.5% of sales at the top to 16.7% at the bottom. The distance between EBITDAR and profit widens from 9.2 points to 17.1.
- 192 extra pre-registrations are worth $873,384 in the first year and still $726,755 three years on. 83.2% of the opening gap survives *, about $3,785 a year, every year, for each child registered before the doors open.
- 219 franchise agreements are signed and waiting against 557 schools trading. Protection over the development area runs until the school opens. A designated area exists where the owner asks for one inside the six-month window opening on the second anniversary.
How much does a Primrose Schools franchise make?
The average Primrose Schools unit reported $2,779,923 of revenue in the 2026 FDD. The brand’s disclosure document’s quartiles put EBITDA for 357 rent-reporting schools at 16.3% of revenue on Averan’s weighting. Fees come off the top first, at about 9% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top Primrose Schools performers
Primrose Schools splits its locations into groups instead of publishing one average. The top group averaged $3,586,393 a year. The lowest averaged $1,909,787. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Site and trade area.The top band sells 1.9× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Opening cost range.Opening costs $2,182,500 to $7,960,300, a 3.6× range inside one brand.
- Lease cost.Rent and space costs ran 12.3% of sales across the 357 rent-reporting Primrose Schools locations. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Live operating levers
- Wages.At the 357 rent-reporting schools, wages take 44.4% of sales, against EBITDA of 16.3% *. The levers at Primrose Schools are classroom staffing against enrollment and scheduling against demand hour by hour.
- Rent stays the same when sales fall.Rent and building costs take 12.3% of sales at the 357 rent-reporting schools. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Enrollment.The license sets the number of places. Track how many are filled, the price of each, and how long families stay.
- Fees.Primrose Schools’ fees run about 9.0% of sales, and Primrose Schools sets no minimum royalty.
Context you underwrite around
- Locations included.These figures cover 520 of 557 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
What reaches the line
Profit and loss including rent, 2025
| Line | Top quartile | Second quartile | Third quartile | Bottom quartile |
|---|---|---|---|---|
| Schools | 89 | 89 | 89 | 90 |
| Average occupancy | 94% | 83% | 71% | 53% |
| Sales | $3,557,271 | $3,242,538 | $2,594,458 | $1,956,524 |
| Wages and taxes | $1,515,385 | $1,436,181 | $1,169,228 | $913,076 |
| Advertising and royalty | $358,173 | $317,682 | $264,121 | $194,577 |
| Other expenses | $408,289 | $360,798 | $316,025 | $229,549 |
| School operating expenses | $168,154 | $170,628 | $149,751 | $133,018 |
| Rent | $338,305 | $381,071 | $352,510 | $326,603 |
| Total expenses | $2,788,305 | $2,666,361 | $2,251,635 | $1,796,822 |
| profit | $768,966 | $576,178 | $342,824 | $159,702 |
| margin | 21.6% | 17.8% | 13.2% | 8.2% |
| Rent as a share of revenue | 9.5% | 11.8% | 13.6% | 16.7% |
| Wages as a share of revenue | 42.6% | 44.3% | 45.1% | 46.7% |
As the brand reported it.
| Line | Gap, bottom to top | Per point of occupancy | Share of the extra revenue |
|---|---|---|---|
| Sales | $1,600,747 | $39,043 | 100.0% |
| Wages and taxes | $602,309 | $14,690 | 37.6% |
| Other expenses | $178,740 | $4,360 | 11.2% |
| Advertising and royalty | $163,596 | $3,990 | 10.2% |
| School operating expenses | $35,136 | $857 | 2.2% |
| Rent | $11,702 | $285 | 0.7% |
| Total expenses | $991,483 | $24,183 | 61.9% |
| profit | $609,264 | $14,860 | 38.1% |
Ours throughout, taking the difference between the top and bottom quartile averages in the table above and dividing by the 41 points of occupancy that separate them.
Wages absorb 37.6% of each additional revenue dollar while sitting at 42.6% to 46.7% of revenue overall. * Staffing ratios are set by license, so the room is already staffed; filling the remaining places adds teachers more slowly than it adds tuition.
Rent takes 0.7% of the extra revenue and 9.5% to 16.7% of the total. The bottom quartile pays $326,603 on $1,956,524 of sales and the top pays $338,305 on $3,557,271. A lease signed for a full building is the fixed cost that decides whether occupancy is comfortable or fatal.
EBITDAR of 25.3% in the bottom quartile becomes profit of 8.2%. That is a 17.1-point drop, against 9.2 points at the top. Any Primrose figure quoted before rent overstates a school with low occupancy about twice as much as a full one.
The lowest-selling school in the top occupancy group lost $99,466 at profit. That group has a median of $678,972 and a high of $1,873,081. High occupancy sets the ceiling; the lease, the wages build and the size of the building decide where inside it a school lands.
Filling a new school
Revenue by opening year, 2025
| Measure | 2022 vintage | 2023 vintage | 2024 vintage |
|---|---|---|---|
| Schools | 13 | 15 | 16 |
| Average revenue | $3,578,371 | $2,898,249 | $1,943,324 |
| Median revenue | $3,144,507 | $2,724,821 | $1,959,063 |
| Reaching the average | 4 of 13 | 5 of 15 | 8 of 16 |
| Highest | $6,286,293 | $5,564,134 | $3,091,732 |
| Lowest | $2,091,049 | $1,718,873 | $949,040 |
| Adaptive-reuse schools | 4 | 3 | 1 |
| Adaptive-reuse average | $5,125,427 | $3,424,789 | $2,101,562 |
| Adaptive-reuse premium * | +43.2% | +18.2% | +8.1% |
As the brand reported it, with the premium row marked *.
| Measure | Top third | Middle third | Bottom third |
|---|---|---|---|
| Schools | 15 | 15 | 14 |
| Average pre-registrations | 207 | 69 | 15 |
| Median pre-registrations | 181 | 61 | 14 |
| Pre-registration range | 126–432 | 41–113 | 0–36 |
| Average first-year revenue | $2,441,092 | $1,725,008 | $1,567,708 |
| Median first-year revenue | $2,265,276 | $1,651,608 | $1,586,471 |
| Average 2025 revenue | $3,122,440 | $2,649,122 | $2,395,685 |
| Median 2025 revenue | $3,077,175 | $2,212,919 | $2,335,390 |
| Gain, first year to 2025 * | $681,348 | $924,114 | $827,977 |
| Gap against the bottom third * | $726,755 | $253,437 | n/a |
Pre-registrations, revenue and counts are as the brand reported it; the last two rows are marked *.
Revenue climbs $817,524 a year through the build-up. $1,943,324 in the 2024 vintage against $3,578,371 in the 2022 vintage *, about 21 points of occupancy a year, or 39 children. A school opened in 2022 now sits 28.7% above the 520-school quartile average of $2,779,923.
192 extra pre-registrations bought $873,384 of first-year revenue. That is $4,549 apiece *. Three years on, $726,755 of that gap is still there, 83.2% of it, so the enrollment list on opening day sets a level.
The middle and bottom thirds gained more after opening than the top third. That is $924,114 and $827,977 against $681,348 *. They gained faster and still finished $473,318 and $726,755 behind, because the top third opened $873,384 of first-year revenue ahead of the bottom third.
Adaptive-reuse schools cost $2,864,100 less to open at the low end and out-earn the average vintage. That is $2,182,500 against $5,016,600. That low figure has a $1,219,050 tenant improvement allowance inside it. The cheapest adaptive-reuse build that went without one reported $1,450,450 of development cost, which puts its total at $2,212,450 *.
Occupancy
Revenue and capacity by occupancy quartile, 2025
| Measure | Top quartile | Second quartile | Third quartile | Bottom quartile |
|---|---|---|---|---|
| Schools | 130 | 130 | 130 | 130 |
| Average occupancy | 94% | 83% | 72% | 52% |
| Occupancy range | 88%–116% | 78%–88% | 65%–78% | 15%–64% |
| Average revenue | $3,586,393 | $3,109,936 | $2,513,577 | $1,909,787 |
| Median revenue | $3,308,944 | $2,993,809 | $2,468,120 | $1,863,251 |
| Highest | $8,566,973 | $6,286,293 | $4,423,752 | $4,492,102 |
| Lowest | $2,279,295 | $1,494,483 | $1,303,900 | $705,779 |
| Reaching the average | 49 of 130 | 53 of 130 | 57 of 130 | 61 of 130 |
| Average licensed capacity | 185 | 188 | 184 | 188 |
| Children enrolled * | 174 | 156 | 132 | 98 |
| Revenue per child * | $20,623 | $19,930 | $18,973 | $19,535 |
| Revenue per point of occupancy * | $38,153 | $37,469 | $34,911 | $36,727 |
Revenue, occupancy, capacity and counts are as the brand reported it. The last three rows are marked *, multiplying average occupancy by average licensed capacity and dividing revenue by the result.
Revenue per enrolled child sits between $18,973 and $20,623. * That is an 8.7% range across Primrose Schools quartiles whose revenue runs 87.8% apart. So the top quartile charges about the same per child as the bottom and simply serves 76 more of them.
Under half of each quartile reaches its own quarter's average. That is 49 of 130 at the top, rising to 61 of 130 at the bottom. The higher the occupancy group, the more one very large school pulls the average away from the middle of the group.
Inside the top occupancy group, revenue runs from $2,279,295 to $8,566,973. That is 3.8 times, at occupancy between 88% and 116%. Licensed capacity in that group runs 144 to 418, so size accounts for the range where occupancy is already settled.
The highest-selling school in the bottom group billed $4,492,102 at 64% occupancy or less. That compares with a group average of $1,909,787. Bottom-quarter capacity reaches 296 places, which is where a half-empty building still out-earns a full one.
Fees and what it costs to open
Royalty and brand charges by revenue level
| Level | Revenue | Royalty at 7% | Brand fund at 2% | Local advertising at 1% | Paid to the brand | With local advertising and a 1% cooperative |
|---|---|---|---|---|---|---|
| Highest school | $8,566,973 | $599,688 | $171,339 | $85,670 | $771,027 | $942,367 |
| Top occupancy quartile | $3,557,271 | $249,009 | $71,145 | $35,573 | $320,154 | $391,300 |
| quartile average | $2,779,923 | $194,595 | $55,598 | $27,799 | $250,193 | $305,792 |
| Bottom occupancy quartile | $1,956,524 | $136,957 | $39,130 | $19,565 | $176,087 | $215,218 |
| Lowest-selling school reporting | $690,168 | $48,312 | $13,803 | $12,000 | $62,115 | $81,017 |
We applied the published rates to filed revenue. The quarter average is the mean of the four equal quartile averages covering all 520 schools.
| Item | New-build low | New-build high | Adaptive-reuse low | Adaptive-reuse high |
|---|---|---|---|---|
| Development costs | $4,254,600 | $6,202,500 | $1,390,500 | $5,507,500 |
| School equipment and supplies | $313,000 | $383,000 | $313,000 | $383,000 |
| Additional funds, three months | $180,000 | $420,000 | $180,000 | $420,000 |
| Financing cost | $55,000 | $310,000 | $55,000 | $310,000 |
| Security deposit and rent guarantee | $0 | $250,000 | $0 | $250,000 |
| Marketing, advertising and grand opening | $75,000 | $105,000 | $75,000 | $105,000 |
| Initial franchise fee | $80,000 | $80,000 | $50,000 | $80,000 |
| Real estate fee | $25,000 | $70,000 | $25,000 | $70,000 |
| Initial training fee | $35,000 | $35,000 | $35,000 | $35,000 |
| Utility security deposits | $10,000 | $30,000 | $10,000 | $30,000 |
| Miscellaneous | $10,000 | $45,000 | $10,000 | $45,000 |
| Insurance | $5,000 | $20,000 | $5,000 | $20,000 |
| Licenses | $4,000 | $7,000 | $4,000 | $7,000 |
| Vehicle lease | $0 | $2,800 | $0 | $2,800 |
| Total | $5,016,600 | $7,960,300 | $2,182,500 | $7,265,300 |
As the brand reported it, reordered here by size; all four columns add to their stated totals exactly *.
Discounts available
- Primrose Schools charges qualifying veterans and members of the U.S. Armed Forces $50,000 instead of $80,000 for their first school (VetFran).
- Primrose Schools charges qualifying existing franchisees $70,000 instead of $80,000 for a new school.
From Item 5 of the Primrose Schools 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Item 7 of the FDD starts the initial franchise fee at $50,000, a discounted price. This page uses the full fee for one unit, $80,000.
The building is 78% to 85% of the cost of opening. That is $4,254,600 to $6,202,500 of a $5,016,600 to $7,960,300 total *. Everything the brand charges to open a new-build school comes to $140,000 at the low end, 2.8% of the project.
The cooperative ends on 30 June 2026, returning $27,799 a year at the quarter average *. That is worth 0.7 of a point of occupancy. The brand fund can move from 2% to 3% under the agreement, which would take the same amount back.
The $1,000 monthly minimum local advertising charge governs below $1,200,000 of revenue. * At the lowest-selling school reporting, $690,168, it lands at 1.74% against 1%. With local advertising and a 1% cooperative, that school’s charges come to 11.7% of sales, the highest in the table; the royalty and brand fund paid to the brand are 9.0%.
A second school costs $27,000 less to start. The franchise fee is $70,000 against $80,000, and the training fee is $18,000 against $35,000. Veterans pay $50,000 on a first school, and a control transfer costs the two sides 40% and 60% of the existing-franchisee fee, $70,000 between them. The inspection fee is $1,000 to $3,000.
Questions we get asked
Questions owners ask.
How much does a Primrose Schools franchise make?
Primrose Schools franchisees averaged $2,779,923 of sales in 2025, according to Item 19 of Primrose Schools’ 2026 FDD, issued 24 April 2026. The 520 in that group are 93%* of Primrose Schools’ 557 locations. Fees paid to Primrose Schools come to about 9%* of sales. A Primrose Schools franchise costs $2,182,500 to $7,960,300 to open.
What should a Primrose Schools franchise be billing?
Across 520 schools that traded all of 2025, revenue by occupancy quartile averaged $3,586,393, $3,109,936, $2,513,577 and $1,909,787. The medians are $3,308,944, $2,993,809, $2,468,120 and $1,863,251. The full range runs from $705,779 to $8,566,973. Between 37.7% and 46.9% of each quartile reached its own average. Against average licensed capacity of 184 to 188 places, revenue works out at $18,973 to $20,623 per enrolled child, which is marked *.
What actually reaches the bottom line at Primrose Schools?
Among 357 schools reporting rent, profit averaged $768,966, $576,178, $342,824 and $159,702 by occupancy quartile, 21.6%, 17.8%, 13.2% and 8.2% of revenue. Wages run 42.6% to 46.7%, advertising and royalty about 10%, other expenses 11.1% to 12.2%, school operating expenses 4.7% to 6.8% and rent 9.5% to 16.7%. Measured before rent, across 405 schools, EBITDAR reads 30.8%, 28.8%, 25.2% and 25.3%. None of these figures include owner compensation. The lowest profit in each quartile is negative in three of the four.
How long does a new Primrose Schools school take to fill?
For 44 schools opened between 2022 and 2024, 2025 revenue averaged $1,943,324 for the 2024 vintage, $2,898,249 for 2023 and $3,578,371 for 2022, a climb of about $817,524 a year, which is marked *. The 2022 vintage now sits 28.7% above the quarter average of $2,779,923. Pre-opening registrations set much of the level: the third of schools opening with 207 registered children averaged $2,441,092 in their first year against $1,567,708 for the third opening with 15. Three years later the gap between those groups is still $726,755.
What fees does Primrose Schools charge?
The Primrose Schools royalty is 7% of sales and the brand fund fee is currently 2%. The agreement permits a 3% brand fund fee, and both are collected by direct debit on the 10th of the following month. Local advertising is 1% of the previous month's revenue or $1,000 a month, whichever is greater. Cooperative contributions of 1% apply in markets with ten or more schools, end on 30 June 2026 and can be reinstated later. The academic curriculum material license fee is $4,000 a school a year. The royalty and brand fund paid to the brand come to 9% of revenue. That is marked *. The filed advertising and royalty line averages 10.0% across the four quartiles.
Who does bookkeeping for a Primrose Schools franchise?
Three things shape the close here. Occupancy is the operating metric and the financial one at the same time, so a month-end enrollment count belongs beside the revenue figure. Each point is worth $39,043 of annual revenue and $14,860 of profit. That is marked *. A school tracking only dollars finds out about a drift in enrollment a quarter late. Second, the royalty and brand fund come out by direct debit on the 10th, based on revenue billed. So tuition on terms creates a fee liability ahead of the cash. Third, rent sits at 9.5% to 16.7% of revenue depending purely on how full the building is. That makes a lease-adjusted margin the number worth watching. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to Primrose Schools
These are questions the Primrose Schools filing leaves open. An owner or a buyer can put them to Primrose Schools directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does Primrose Schools see in its highest-selling locations, such as trade area, years open and size?
- 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 Primrose Schools 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. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is a point of occupancy worth in your school at Primrose Schools?
We review your unit economics and cash forecast and build your reporting around enrollment tracked beside revenue, a lease-adjusted margin, and the build-up your vintage is actually on.
Talk to AveranWhere these figures come from.
Every figure here comes from Primrose School Franchising SPE, 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. Primrose Schools® is a registered 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: Primrose School Franchising SPE, LLC, 2026 Franchise Disclosure Document, issued 24 April 2026.
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Primrose Schools reads against the rest of the early education and child care group: Celebree School · Kiddie Academy · Lightbridge Academy · Soccer Shots · The Goddard School · The Learning Experience. The early education and child care guide compares all of them on the same figures.
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.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- 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.