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Primrose Schools

Primrose Schools

The total investment to open a Primrose Schools franchise ranges from $742,900 to $8.6M. The initial franchise fee is $80,000. Ongoing royalties are 7% plus a 2% advertising fee.

What is the Primrose Schools franchise?

Primrose Schools is an early education and childcare franchise with more than 500 schools across 35+ states. It serves children from six weeks through twelve years using its proprietary Balanced Learning curriculum, developed by education experts and supported by more than four decades of early childhood development research. Paul and Marcy Erwin founded the company in 1982 in Marietta, Georgia. Their model combines purposeful play, teacher guided instruction, and child initiated exploration to support intellectual, social, emotional, and physical development. Roark Capital Group acquired a majority stake in 2018. Its portfolio includes dozens of franchise brands with more than $60 billion in combined system sales. Every Primrose school is accredited by Cognia, formerly AdvancED and SACS, which also accredits K 12 schools and universities.

The sector has faced closures since the COVID 19 pandemic, the expiration of federal stabilization funding that began in 2024, and ongoing shortages of early childhood educators. Primrose competes with KinderCare, The Goddard School, Kiddie Academy, Lightbridge Academy, and The Learning Experience, along with independent daycare centers, church based programs, and home based providers. Its differentiation centers on the Balanced Learning curriculum, Cognia accreditation, and a school like setting focused on education rather than custodial care. This positioning supports premium tuition and appeals to families focused on cognitive and social development.

A new Primrose franchise has an initial franchise fee of $80,000. The fee is $70,000 for existing franchisees and $50,000 for qualifying VetFran military veterans. Total investment ranges from approximately $742,900 for build to suit lease arrangements to $6,192,660 to $8,595,000 under the real estate development program, in which the franchisee owns or develops the property. The five development programs are real estate development, build to suit developer lease, permanent lease, independent development, and site first development. Ongoing fees include a 7% royalty on gross revenues, a 2% Primrose Brand Fund contribution that may increase to 3%, a 1% local advertising requirement, and potential cooperative advertising contributions of up to 2%. The standard franchise agreement has a long term that reflects the capital required and the enrollment ramp up period. Primrose and its affiliates do not offer financing, so franchisees must arrange capital through conventional lending, SBA loans, or private equity.

Primrose provides training and operational support covering education delivery, child safety, licensing, parent communication, and business management. Training starts with remote orientation and self guided industry study, followed by sessions at designated facilities and on site training at approved Primrose schools. Franchisees must complete pre opening training at least 16 weeks before opening and additional post opening training within 6 to 12 months. Topics include Balanced Learning implementation, Cognia standards, staff recruitment and retention, enrollment marketing, parent engagement, financial management, and state childcare licensing. Ongoing assistance includes field consulting, marketing guidance, curriculum updates, teacher development resources, and centralized technology and operational platforms. Primrose continually updates its research backed curriculum, which helps franchisees avoid developing their own program. This support is relevant in a regulated industry where licensing, safety, and education requirements vary by state and municipality.

Revenue depends on enrollment capacity, tuition rates, and occupancy. Tuition varies by market and age group. Infant care has the highest per child rates, and after school programs add revenue during afternoon hours and school breaks.

Primrose has grown from one school in 1982 to more than 500 locations across 35+ states. All locations are independently owned franchises, and Primrose operates no company owned schools. Since Roark Capital acquired its majority stake in 2018, the brand has continued adding schools while investing in curriculum, technology, and marketing. Demand is supported by dual income households, a reduced supply of licensed childcare slots after independent provider closures, and continuing federal and state discussion about childcare access and affordability.

A suitable franchisee is a well capitalized business professional or investor with an interest in education and community impact, enough capital for the investment, and the patience to manage the enrollment ramp up. Education or childcare experience is not required because Primrose provides training. Business management, leadership, and the ability to recruit and retain qualified teachers are important. Franchisees can pursue multi unit development within a region. Real estate development programs may exceed $8 million, so typical candidates include experienced business owners, real estate investors, and professionals with significant personal wealth or access to institutional capital.

Loan Activity Score

70/100

SBA Default Rate

0.0%

Active Lenders

106

According to its Franchise Disclosure Document or public business records, Primrose Schools has 389 locations, all owned by franchisees. Public SBA loan records show 106 lenders made 554 loans to franchisees of Primrose Schools. PeerSense calculates Primrose Schools's score as 70 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document.

2025 FDD VERIFIEDChild Day Care Services

Franchising since 1982 · 389 locations

Investment

$742,900 to $8.6M

Franchise Fee

$80,000

Total Units

389

389 franchised

Loan Activity Score
Very high
70
SBA Lending
25
Lender Quality
13
Transparency
10
Reach
10
Momentum
12

Proprietary PeerSense metric

Strong
Capital Sources
106SBA lenders

Distinct lenders in public SBA records for Primrose Schools

554

Total SBA loans

$2.3M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Primrose Schools

Loan Activity Score Breakdown

Major Brand (100+ loans)

Very High Confidence
70out of 100
Strong
Market Momentum12/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence13/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency10/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

0.0%

vs 10.8% peer avg

SBA Loans

554

Total Volume

$1247.0M

Active Lenders

106

15 selective

States

36

vs. SBA Sector Average

+10.8%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (0.0%)
Item 19 financial data disclosed
389 locations nationwide

Data Insights

Key performance metrics for Primrose Schools based on SBA lending data

SBA Default Rate

0.0%

10.8% below peer avg

SBA Loan Volume

554 loans

Across 106 lenders

Lender Diversity

106 lenders

Avg 5.2 loans per lender

Investment Tier

Premium investment

$742,900 to $8,595,000 total

Primrose Schools: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2021

57 approvals. The best year on record for Primrose Schools.

Top SBA State

Texas

97 SBA financed Primrose Schools locations, the densest operator footprint.

Average Loan Size

$2.3M

Median $2.0M. Use as a sizing anchor when modeling your own Primrose Schools unit.

Lender Concentration

24.9%

Moderately Spread

Share of Primrose Schools approvals captured by the top 3 SBA lenders.

Primrose Schools's SBA lending pipeline peaked in 2021 (57 approvals). The last five fiscal years account for 43% of cumulative volume ($471M approved). Operator density is highest in Texas with 97 SBA financed locations. Average funded ticket sits at $2.3M, with the median at $2.0M. Lender mix is moderately spread: the top three SBA lenders account for 24.9% of approvals. Borrowers have leverage to shop multiple credit boxes.

Payment Estimator

Loan Amount$594K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$7,690

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Primrose Schools, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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1 FDD Available for Primrose Schools

Review franchise fees, investment ranges, royalties, Item 19 financial data, and year over year trends. Request complimentary access through your PeerSense funding advisor.

Primrose Schools

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; it does not lend, fund, or approve loans, and 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