The Learning Experience franchise unit economics
The Learning Experience franchisees run early education and child care from centers of about 10,000 square feet with a 5,000 square foot playground. Mature franchised centers averaged $2,186,393 in 2025 against $2,710,790 at the company's own, 24.0% more. At the 24-to-47-month stage the ranking reverses: franchised centers bill $1,941,423 against $1,681,389.
- Primary source
- The Learning Experience Systems LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 266 of 436 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
At 24 to 47 months, franchised centers bill $1,941,423 and the company's own bill $1,681,389. Past 48 months the ranking flips: $2,186,393 against $2,710,790. Franchisees are ahead through the build-up and behind at maturity, and the gap has widened every year since 2023.
- Franchisees lead by 13.4% in the build-up and trail by 24.0% at maturity.$1,941,423 against $1,681,389 at 24 to 47 months, then $2,186,393 against $2,710,790 past 48 *.
- The maturity gap widened from 11.5% to 24.0% in two years.Company mature sales rose 19.5% across the three years against 7.5% for franchised ones *.
- $1,010,764 separates the upper half of mature franchised centers from the lower half.$2,699,375 across 131 centers against $1,688,611 across 135, inside a full range of $715,099 to $4,834,709.
- Letting the franchisor develop the site costs $805,799 to $1,563,499; doing it yourself costs $2,264,799 to $5,658,799.2.8 times at the low end and 3.6 times at the high *, because the second route buys the land.
- Franchise fees take 8.5% to 9.6% of sales, including a fee on the lease itself.7% royalty, 1% brand fund, $6,300 of software and a lease administration fee of the greater of 8% of base rent or $1.80 a square foot *.
How much does a The Learning Experience franchise make?
The average The Learning Experience unit reported $2,186,393 of revenue in the 2026 FDD, and the median reported $2,168,511. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. 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 The Learning Experience performers
The Learning Experience splits its locations into groups instead of publishing one average. The best group averaged $2,699,375 a year. The worst averaged $1,688,611. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $2,168,511. The average was $2,186,393. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 1.6× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Capacity, fixed at build.Locations run 10,000 square feet. What you can sell is set by the build, and the build does not change after opening.
- What you spend to open.Opening costs $805,799 to $5,658,799, a 7.0× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Enrolment, the operating driver.This model bills on enrolment. The licence fixes how many places exist, so what is left is how many are filled, what each is priced at, and how long a family stays. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Membership and rebooking.A recurring plan turns a high-fixed-cost business from an appointment book into a subscription, which smooths the utilisation that drives the wage line. Rebooking before the customer leaves is what builds it, not marketing spend afterwards.
- Fees, and where the minimum bites.Fees run about 9.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.266 of 436 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations. The brand’s own locations are the only margin signal in the document, and they are run by the people who wrote the playbook.
How much locations differ
A million dollars between halves of the same group.
| Group | Centers | Average | Highest | Lowest |
|---|---|---|---|---|
| Franchised mature, above average | 131 | $2,699,375 | $4,834,709 | $2,187,362 |
| Franchised mature, below average | 135 | $1,688,611 | $2,180,181 | $715,099 |
| Company mature, above average | 7 | $3,344,221 | $3,993,309 | $2,796,562 |
| Company mature, below average | 10 | $2,267,388 | $2,625,926 | $1,878,833 |
| Franchised intermediate, above average | 29 | $2,497,531 | $4,156,805 | $1,959,054 |
| Franchised intermediate, below average | 30 | $1,403,852 | $1,932,176 | $333,097 |
| Company intermediate, above average | 5 | $2,172,774 | $2,643,969 | $1,792,789 |
| Company intermediate, below average | 5 | $1,190,004 | $1,393,259 | $977,948 |
As the brand reported it.
The upper half of mature franchised centers bills 1.6 times the lower half. $2,699,375 against $1,688,611, $1,010,764 apart *. Both halves have traded more than four years in the same format under the same brand.
The lowest-selling mature franchised center bills $715,099. A third of its group average, in a building sized for roughly $2.2 million of sales. The highest-selling bills $4,834,709, 6.8 times more *.
The company's lowest-selling mature center bills $1,878,833. Against $715,099 for the franchised equivalent, 2.6 times higher *. The company's minimum instead of its ceiling is what produces its 24.0% average advantage.
An intermediate franchised center in the upper half already bills $2,497,531. Above the mature franchised average of $2,186,393. So the build-up is short where the site works, and the mature average has a long tail of centers still short of it.
The brand’s own locations against yours
Ahead in the build-up, behind at the top.
| Group | Year | Centers | Average gross sales | Median | Reaching the average | Against the other owner * |
|---|---|---|---|---|---|---|
| Franchised, over 48 months | 2023 | 197 | $2,034,763 | $2,038,148 | 99 (50.3%) | −10.3% |
| 2024 | 232 | $2,163,703 | $2,160,607 | 116 (50.0%) | −18.1% | |
| 2025 | 266 | $2,186,393 | $2,168,511 | 131 (49.2%) | −19.3% | |
| Company-owned, over 48 months | 2023 | 18 | $2,269,149 | $2,269,043 | 9 (50.0%) | +11.5% |
| 2024 | 16 | $2,641,927 | $2,460,136 | 7 (43.8%) | +22.1% | |
| 2025 | 17 | $2,710,790 | $2,574,296 | 7 (41.2%) | +24.0% | |
| Franchised, 24 to 47 months | 2023 | 69 | $1,766,829 | $1,901,758 | 38 (55.1%) | +15.3% |
| 2024 | 65 | $1,863,709 | $1,888,521 | 35 (53.8%) | +15.3% | |
| 2025 | 59 | $1,941,423 | $1,932,176 | 29 (49.2%) | +15.5% | |
| Company-owned, 24 to 47 months | 2023 | 12 | $1,532,296 | $1,462,942 | 4 (33.3%) | −13.3% |
| 2024 | 11 | $1,615,902 | $1,521,312 | 5 (45.5%) | −13.3% | |
| 2025 | 10 | $1,681,389 | $1,593,024 | 5 (50.0%) | −13.4% |
Sales, medians and counts are as the brand reported it. The final column is marked *, comparing each group with the other owner at the same age in the same year.
The ranking reverses with age. Franchised centers at 24 to 47 months bill 15.5% more than the company's own at the same age, and mature franchised centers bill 19.3% less *. Whatever the company does well, it does at scale and late.
The maturity gap doubled in two years. 11.5% in 2023, 22.1% in 2024, 24.0% in 2025 *. Company mature sales rose 19.5% across the period against 7.5% for franchised ones, so the company pulled away.
Franchised mature sales moved $151,630 in three years. $2,034,763 to $2,186,393, 7.5%, or about 2.4% a year. Against the same period's wage and rent movements, that is a system holding its price.
Under half of mature franchised centers reach their own average. 131 of 266 in 2025, down from 50.3% in 2023. The median at $2,168,511 sits $17,882 below the average, so the distribution is close to symmetrical with a long upper tail.
Fees and what it costs to open
Nine percent, and a charge on the lease.
| Charge | Rate | At $2,186,393 of sales |
|---|---|---|
| Royalty | 7% of sales | $153,048 |
| Brand awareness fund | 1% of sales, ceiling 2.5% | $21,864 |
| Lease administration fee | Greater of 8% of base rent or $1.80 a square foot | $18,000 at 10,000 square feet |
| Software service fee | $525 a month | $6,300 |
| Proprietary product purchases | Cost plus 18% licensing fee | $5,000 to $10,000 |
| Total | n/a | $204,212 to $209,212 |
| Share of sales | n/a | 9.3% to 9.6% |
| Brand fund at its 2.5% ceiling | +1.5% | +$32,796 |
Ours, applying the published rates to the filed mature franchised average.
| Route | Low | High |
|---|---|---|
| New center, franchisor develops the site | $805,799 | $1,563,499 |
| New center, you develop the site | $2,264,799 | $5,658,799 |
| Acquiring an existing center | $937,300 | $3,393,000 |
| Four centers under a multiple-center addendum | $3,401,196 | $22,813,196 |
As the brand reported it.
The franchisor charges a fee on your rent. The greater of 8% of annual base rent or $1.80 a square foot, $18,000 a year at a 10,000 square foot center, and more once base rent passes $225,000 *. It is the only charge that rises with the landlord’s price;s sales.
Having the site developed for you costs $1,459,000 less at the low end. $805,799 against $2,264,799 *. The difference is the land: the turnkey route leaves a third-party developer holding it and the self-development route puts it on the franchisee's balance sheet.
Six months of wages and operating costs is $400,000 to $650,000 of the opening budget. Half the low estimate. A center that fills slowly is spending that money against an empty building. That is what the $715,099 minimum in the mature group looks like on the way down.
The brand fund can rise from 1% to 2.5%. $32,796 a year more at the mature average *, which would take the total load past 11%. It is the largest single piece of contractual headroom in the fee schedule.
The network of locations
A hundred and forty-two openings, zero terminations. (Item 20)
| Measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Franchised at start | 301 | 326 | 386 |
| Opened | 31 | 54 | 57 |
| Company centers bought by franchisees | 7 | 9 | 4 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 11 | 2 | 5 |
| Ceased for other reasons | 2 | 1 | 6 |
| Franchised at end | 326 | 386 | 436 |
| Company-owned at end | 40 | 31 | 29 |
| Total outlets at end | 366 | 417 | 465 |
As the brand reported it; every year reconciles exactly *.
Zero terminations and zero non-renewals in three years. Across a system that grew from 339 outlets to 465. The nine departures in that period are all filed as ceasing for other reasons, and 18 more moved back to the franchisor.
The company is a seller of centers and a buyer of them at the same time. Twenty went to franchisees across the three years and 18 came back. Its own estate shrank from 38 to 29 while its mature centers pulled 24.0% ahead of franchised ones on sales.
Openings nearly doubled, from 31 to 57 a year. The intermediate franchised group fell from 69 centers to 59 over the same period. Because centers kept graduating into the mature group faster than new ones reached 24 months.
The mature franchised group grew from 197 centers to 266. Thirty-five percent more centers carrying an average that rose 7.5%. A growing denominator holding its average is the sign of new sites performing near the old ones.
Questions we get asked
Questions owners ask.
What should a Learning Experience center be billing?
Among 266 franchised centers open more than 48 months, gross sales averaged $2,186,393 in 2025 with a median of $2,168,511, and 131 of them reached the average. The upper half averaged $2,699,375 and the lower half $1,688,611, with the full range running $715,099 to $4,834,709. Among 59 franchised centers at 24 to 47 months the average was $1,941,423 with a median of $1,932,176.
How do company-owned centers compare?
At maturity they bill more: $2,710,790 across 17 centers against $2,186,393 across 266 franchised ones, which is 24.0% and marked *. At 24 to 47 months they bill less: $1,681,389 across 10 centers against $1,941,423 across 59 franchised ones, which is 13.4% and also marked *. The company's advantage sits in its minimum. Its lowest-selling mature center bills $1,878,833 against $715,099 for the lowest-selling franchised one.
What does the brand take?
A royalty of 7% of sales on the first of each month. A brand awareness fund contribution currently 1%, which the franchisor may raise to 2.5%. A lease administration fee of the greater of 8% of annual base rent or $1.80 a square foot a year. A software service fee of $525 a month, capped at 5% annual increases, with a further app subscription of about $99 a month reserved. And proprietary product purchases at cost plus an 18% licensing fee, estimated at $5,000 to $10,000 a year. At the mature franchised average that comes to $204,212 to $209,212, or 9.3% to 9.6% of sales, which is marked *.
What does it cost to open?
Two routes. With the franchisor finding and developing the site, $805,799 to $1,563,499, including a $60,000 franchise fee and a site development service charge of $250,000 to $312,500. Developing the site yourself, $2,264,799 to $5,658,799, which replaces that charge with a $75,000 site coordination fee and adds the land. Acquiring an existing center runs $937,300 to $3,393,000 plus an acquisition fee, and four centers under a multiple-center addendum run $3,401,196 to $22,813,196. Six months of salaries and operating costs account for $400,000 to $650,000 of the first route.
Who does bookkeeping for a Learning Experience franchise?
Three things shape the close here. The lease administration fee is the greater of two measures, 8% of base rent or $1.80 a square foot. So it needs recalculating whenever the lease steps up. A center paying more than $225,000 of base rent at 10,000 square feet has moved onto the percentage, which is marked *. Second, proprietary product purchases have an 18% licensing fee on top of cost plus freight, insurance and tax. So the landed cost of those items sits well above their invoice line and belongs in cost of sales. Third, late reporting has its own schedule ($50 an occurrence plus $30 a day, 5% of an enrolled corporate child's tuition a day for corporate contract reports) which makes the reporting calendar a cash item. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to The Learning Experience
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- 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 The Learning Experience locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic 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 →Which half of the mature group are you in?
A structured review of your unit economics, cash forecast. Reporting, built around sales per center against the published halves, a lease administration fee that moves with rent. The landed cost of proprietary purchases.
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