Childrens Lighthouse vs Primrose Schools
Childrens Lighthouse vs Primrose Schools: Childrens Lighthouse costs $940K to $1.2M to open; Primrose Schools costs $743K to $8.6M. Childrens Lighthouse has 73 units, Primrose Schools has 389. SBA loan history: Childrens Lighthouse = 111 loans (0.0% default); Primrose Schools = 554 loans (0.0% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Childrens Lighthouse vs Primrose Schools: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Primrose Schools requires the lower minimum capital commitment ($743K vs $940K for Childrens Lighthouse), a 26% spread. Initial franchise fees come in at $85K for Childrens Lighthouse versus $80K for Primrose Schools, Primrose Schools has the lower entry fee. Ongoing royalty load is 7% for Childrens Lighthouse and 7% for Primrose Schools, equal royalty drag.
System Scale & Tenure
On scale, Primrose Schools operates 389 units to Childrens Lighthouse's 73, roughly 5× the system size. Primrose Schools has been operating 44 years (founded 1982) versus 29 for Childrens Lighthouse (founded 1997), a 15-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Primrose Schools has the deeper SBA lending track record, with 554 7(a) approvals compared with 111 for Childrens Lighthouse. Childrens Lighthouse's peak SBA year was 2020 (9 loans); Primrose Schools's peak was 2021 (57 loans). Primrose Schools's more recent peak generally indicates fresher lender appetite. Both systems have the most SBA funded units in TX. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Childrens Lighthouse deals is $1.9M vs $2.3M for Primrose Schools, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for Childrens Lighthouse and 0.0% for Primrose Schools. PeerSense FPI scores come in at 61 (Moderate) for Childrens Lighthouse and 70 (Strong) for Primrose Schools, giving Primrose Schools the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 61/100 | 70/100 |
Health Tier | Moderate | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 111 | 554 |
SBA Volume | – | – |
Default Rate | 0.0% | 0.0% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $940K to $1.2M | $743K to $8.6M |
Franchise Fee | $85K | $80K |
Royalty Rate | 7% | 7% |
Ad Fund | 0.5% | 2% |
Liquid Capital | N/A | $1.2M |
Net Worth Required | N/A | $1.2M |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 73 | 389 |
Franchised Units | 73 | 389 |
Company Owned | – | – |
Term Length | 20 yrs | 10 yrs |
Brand Information
Year Founded | 1997 | 1982 |
Franchising Since | 1960 | 1988 |
Years Franchising | 66 yrs | 38 yrs |
Headquarters | Fort Worth, TX | FRISCO, TX |
Category | Child Day Care Services | Child Day Care Services |
Website | ||
FDD Year | 2023 | 2025 |
Which Is Better, Childrens Lighthouse or Primrose Schools?
Lower upfront capital required
Primrose Schools
Childrens Lighthouse: $940K starting · Primrose Schools: $743K starting
More SBA lender confidence
Primrose Schools
Childrens Lighthouse: 111 SBA loans · Primrose Schools: 554 SBA loans
Lower SBA default rate
Tie
Childrens Lighthouse: 0.0% · Primrose Schools: 0.0%
Larger system & brand presence
Primrose Schools
Childrens Lighthouse: 73 units · Primrose Schools: 389 units
Lower ongoing royalty load
Tie
Childrens Lighthouse: 7% · Primrose Schools: 7%
More lender financing options
Primrose Schools
Childrens Lighthouse: 46 unique lenders · Primrose Schools: 106 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Childrens Lighthouse vs Primrose Schools: Franchise Funding Comparison
Comparing Childrens Lighthouse and Primrose Schools is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $743K to $8.6M.
Childrens Lighthouse has 111 SBA loans on record and Primrose Schools has 554. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Childrens Lighthouse vs Primrose Schools, Frequently Asked Questions
Which is a better franchise investment, Childrens Lighthouse or Primrose Schools?
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Which has a lower SBA default rate, Childrens Lighthouse or Primrose Schools?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman