Best Education Franchises 2026: Costs, Profits & Real FDD Data
Quick Summary: Education franchises span a wide investment spectrum — from $41K for a home-based tutoring territory to over $8.5M for a full-scale childcare facility. This guide covers 22 brands across childcare, tutoring, and enrichment using real Item 19 Financial Performance data from 2025–2026 FDDs.
FDD (Franchise Disclosure Document): A legal document every franchisor in the US must provide before any money changes hands. It contains 23 standardized sections covering everything from the company's history and fees to financial performance and litigation history. Think of it as the franchise's official fact sheet — required by the FTC.
Item 19 (Financial Performance Representation / FPR): The section of the FDD where franchisors can (but are not required to) share how existing franchisees have actually performed financially. When a brand makes an FPR, they've chosen to disclose real earnings data. When they don't, you have no official basis to estimate what you might earn — a significant red flag.
Item 7 (Estimated Initial Investment): The FDD section that itemizes every cost you're expected to incur to open and operate the franchise for the first three months. This is where total investment ranges come from.
Royalty fee: An ongoing payment to the franchisor, typically a percentage of your gross revenue or a flat monthly fee. Separate from the one-time initial franchise fee.
Initial franchise fee: A one-time payment when you sign the franchise agreement. It grants you the right to operate under the brand. This is one component of the total investment — not the whole cost.
Master franchise: A model where you buy rights to a territory and recruit, sell to, and support individual unit franchisees within it. You earn royalties from those units rather than operating the business yourself.
Unit franchise: The traditional model — you operate a single territory, delivering the service directly to customers.
Territory: The geographic area or population base assigned exclusively to your franchise. Some protect by zip code, others by population count. Understanding exactly what you're buying is critical before signing.
Gross revenue / Gross sales: Total amount billed or collected before any expenses, royalties, or deductions. Item 19 figures are almost always gross — not net income or profit.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for operating profitability. When a brand discloses EBITDA margins, it shows roughly how many cents of every revenue dollar remain after operating costs, before taxes and financing.
Most education franchise guides list brands, describe their programs, and move on. This one is built on data. Using 2025–2026 Franchise Disclosure Documents filed with the state of Wisconsin, we've extracted the actual Item 19 financial performance data — where franchisors report what their franchisees earned, not what they project you might earn.
Every brand in this guide makes a Financial Performance Representation, which is notable: in many franchise industries, a third or more of brands choose not to disclose earnings data. Education franchises, as a category, are unusually transparent.
Use this guide to understand which brands generate the most revenue, how investment levels and royalty structures vary between childcare, tutoring, and enrichment models, and which type of education franchise fits your capital and lifestyle goals.
All investment and fee data sourced directly from the most recent Franchise Disclosure Documents. Item 19 data represents reported gross sales or revenues from franchisees who reported for the full prior fiscal year.
| Brand | Type | Initial Fee | Royalty | Total Investment | FPR? | Item 19 Highlight |
|---|---|---|---|---|---|---|
| The Learning Experience | Childcare | $60,000 | See FDD | See FDD | Yes | 2024 avg gross sales $2,163,703 across 232 centers; median $2,160,607 |
| Goddard School | Childcare | See FDD | 10% | $5.2M–$8.6M | Yes | Reports EBITDAR for mature schools; tables image-based — see FDD |
| Primrose Schools | Childcare | $80,000 | 3% | $6.2M–$8.6M | Yes | FPR included; financial tables image-based — see FDD for figures |
| Kiddie Academy | Childcare | $70K–$125K | 7% | See FDD | Yes | Mature academies avg gross revenue $2,193,070; median $2,100,792; top quartile avg $3,098,496 |
| Lightbridge Academy | Childcare | $50,000 | 7% | $1.1M–$2.8M | Yes | FPR included; financial tables image-based — see FDD for figures |
| Celebree School | Childcare | $75,000 | 7% | See FDD | Yes | Reports revenue, expense breakdown, and EBITDAR by maturity tier |
| Kumon | Tutoring | $2,000 | $36–$43/student/mo* | See FDD | Yes | FPR included; financial tables image-based — see FDD for figures |
| Mathnasium | Tutoring | $49,000 | 10%** | $189K–$249K | Yes | Reports avg and median Gross Receipts by quartile; tables image-based — see FDD |
| Sylvan Learning | Tutoring | $33K–$37K | 11% | $140K–$299K | Yes | Top quartile avg gross sales $810,698; 2nd quartile avg $366,443; overall median $375,138 |
| Huntington Learning Centers | Tutoring | $36,000 | 9.5% | See FDD | Yes | FPR included; detailed tables in FDD |
| Club Z! | Tutoring | $27,250 | 8% | $41K–$57K | Yes | Reports student counts by quartile; median 45 students per territory |
| The Tutoring Center | Tutoring | $32,000 | $1,500/mo flat | See FDD | Yes | FPR included; reports revenue data in FDD |
| JEI Learning Centers | Tutoring | $22,500 | See FDD | See FDD | Yes | FPR included; financial tables image-based — see FDD for figures |
| Code Ninjas | Enrichment/STEM | $40,000 | 8% | See FDD | Yes | Center overall avg gross sales $241,242; median $225,536; top 25% avg $381,693 |
| Snapology | Enrichment/STEM | $24K–$47.5K | 7% | $187K–$286K | Yes | Full-time mobile avg $157,035; median $106,927; high $504,708 |
| School of Rock | Enrichment/Arts | $59,900 | 8% | See FDD | Yes | Franchised schools avg total sales $672,488; median $640,486; company-owned avg $925,351 |
| Bach to Rock | Enrichment/Arts | $45,000 | See FDD | See FDD | Yes | FPR included; see FDD for detailed figures |
| Challenge Island | Enrichment/STEM | $49,900 | 7% | See FDD | Yes | FPR included; see FDD for detailed figures |
| Engineering For Kids | Enrichment/STEM | $30,000 | 7% | See FDD | Yes | FPR included; see FDD for detailed figures |
| iCode | Enrichment/STEM | See FDD | 8% | $77K–$165K | Yes | FPR included; see FDD for detailed figures |
| Bricks 4 Kidz | Enrichment/STEM | $25,000 | 7% | See FDD | Yes | Reports avg gross revenue by performance group in 2026 FDD |
| Kidcreate Studio | Enrichment/Arts | $45,000 | See FDD | See FDD | Yes | Reports affiliate and franchised location Gross Sales from 2015–2024 |
*Kumon uses a per-student royalty model: $36–$40.50 per full-paying student per month (increasing to $38–$42.75 in January 2026). See Item 6 of their FDD for the full fee structure.
**Mathnasium charges 10% of monthly Gross Receipts or a minimum of $1,500/month (whichever is greater), plus a base royalty of $650/month. See Item 6 of their FDD for details.
The Franchise Disclosure Document's Item 19 is the most important section most franchise buyers never read carefully. Franchisors are not required to make a Financial Performance Representation — but all 22 education brands in this guide do. Here's what the numbers actually tell us.
Childcare franchises represent the largest investment and the highest revenues in the education space. These are real estate-intensive businesses: you're building or leasing a facility designed to serve hundreds of children, with licensing requirements, staffing ratios, and regulatory oversight that shape every aspect of operations.
Kiddie Academy's 2025 FDD is one of the most detailed in this category. Across 280 mature academies (those that have been operating long enough to reach stabilized enrollment), the average Gross Revenue was $2,193,070 and the median was $2,100,792. Their top quartile of 70 academies averaged $3,098,496 in Gross Revenue with a median of $2,888,826. Labor expense was the largest cost line: the mature academy average was $1,006,981 (roughly 46% of revenue), with occupancy at $359,158 (16%) and miscellaneous expenses at $267,017 (12%). The resulting average Gross Profit was $559,914 and the median was $495,797.
The Learning Experience's 2025 FDD covers 232 centers that reported for 2024. The average Gross Sales were $2,163,703, with a median of $2,160,607. Their company-owned centers (19 locations) performed slightly differently: average Gross Sales of $2,269,149 with a median of $2,269,043. The data also shows year-over-year growth: in 2022, the average across 173 centers was $1,979,344, rising to $2,034,763 across 197 centers in 2023.
Celebree School's Item 19 includes expense breakdowns and EBITDAR figures by maturity tier, making it one of the more complete disclosures for understanding actual profitability rather than just revenue.
Goddard School and Primrose Schools both make Financial Performance Representations in their 2025 FDDs, though their financial tables are formatted in a way that requires reading the FDD directly. Goddard's Item 19 includes average EBITDAR data — a useful profitability proxy that accounts for rent-related expenses separately, which matters in a sector where facility costs vary enormously by market.
The investment required to enter childcare is substantial. Goddard School's total estimated initial investment ranges from $5,232,500 to $8,568,000. Primrose Schools ranges from $6,192,660 to $8,595,000. Lightbridge Academy is a comparatively accessible entry point at $1,115,233 to $2,828,500, while still requiring significant capital.
Tutoring franchises offer a fundamentally different economic model than childcare. The physical footprint is smaller, the staff-to-student ratios are more favorable, and many models allow for home-based or hybrid operations. The tradeoff: revenue per location is typically lower, and student retention requires ongoing marketing effort.
Sylvan Learning's 2025 FDD provides a clear quartile breakdown. The top quartile of centers (110 units) averaged $810,698 in gross sales, with the highest individual center reaching $2,991,644. The second quartile averaged $366,443. The median across all reporting centers was $375,138, with the bottom quartile averaging $189,428. Sylvan's total investment ranges from $140,322 to $299,412, and its royalty rate of 11% is the highest percentage-based fee in our education dataset.
Club Z! operates a home-based tutoring model with the lowest total investment in our dataset: $40,975 to $57,425. Their 2025 FDD Item 19 reports student counts rather than dollar revenue, with a median of 45 students per territory, a low of 16, and a high of 217. At an 8% royalty and a $27,250 initial franchise fee, Club Z! is the most accessible entry point into tutoring franchising.
Kumon's model is unique in several ways. The initial franchise fee is just $2,000 — by far the lowest in any education franchise. But Kumon's royalty is a per-student monthly fee ($36–$40.50 per full-paying student, increasing to $38–$42.75 in 2026) rather than a percentage of revenue. This means the effective royalty rate depends entirely on your tuition pricing and student count. Kumon has over 1,400 centers in the US and makes an FPR in their 2025 FDD, though the financial tables require reviewing the FDD directly.
Mathnasium's 2025 FDD reports average and median Gross Receipts broken down by quartile. While the actual dollar figures are formatted as tables within the FDD (requiring direct review), the surrounding text provides important context: 999 centers were in operation as of December 31, 2024, with 861 qualifying for the financial performance representation. Mathnasium's investment ranges from $188,516 to $249,096, and its royalty structure is 10% of monthly Gross Receipts (minimum $1,500/month) plus a $650/month base royalty.
Huntington Learning Centers charges a 9.5% royalty with a $36,000 initial franchise fee and makes an FPR in their 2025 FDD with detailed financial tables.
Enrichment franchises — covering coding, engineering, music, art, and hands-on science — are the most diverse subcategory and often the most accessible in terms of investment. Many operate mobile or classroom-based models without requiring a dedicated retail location.
Code Ninjas' 2025 FDD provides one of the most detailed Item 19 breakdowns in our dataset. Across 214 Center-format locations, the overall average gross sales were $241,242 with a median of $225,536. The top 25% of centers averaged $381,693 (high of $694,995), while the bottom 25% averaged $125,353. Code Ninjas also operates a Studio format (13 locations): smaller footprints averaging $187,848 in gross sales. The data also includes monthly active student counts — a useful operational metric. 45% of centers met or exceeded the average, suggesting a reasonably balanced distribution.
School of Rock's 2025 FDD shows franchised schools averaged $672,488 in total sales during 2024, with a median of $640,486. The highest franchised school reported $2,091,171, while the lowest reported $173,015. Company-owned schools performed at a premium: averaging $925,351 with a median of $824,785. School of Rock also discloses a profit and loss statement for company-owned designated schools, providing one of the few full cost structure disclosures in the enrichment category.
Snapology's FDD breaks results by business model. Full-time mobile Snapology businesses averaged $157,035 in 2024 gross sales (median $106,927, high $504,708). Full-time classroom locations averaged $74,763 (median $39,049). Protected area size — measured in number of children aged 0–14 in the territory — is a key driver of performance.
Bricks 4 Kidz's 2026 FDD reports average gross revenue by performance group, with figures ranked across the franchise system. At a $25,000 initial fee and 7% royalty, it offers one of the more affordable enrichment franchise entry points.
Kidcreate Studio reports Gross Sales data for both affiliate-owned and franchised locations from 2015 through 2024, providing a uniquely long historical view. Their Two-in-One Studio format (combining in-studio classes with mobile programs) shows how revenue has evolved over nearly a decade of operation.
Best for: Well-capitalized buyers who want a large-scale, recurring-revenue business with deep community roots and long customer lifecycles (children typically enroll for 3–5 years).
Kiddie Academy's mature academies averaging $2.19M in Gross Revenue and top-quartile operators at $3.1M illustrate the upside. The Learning Experience's 2024 average of $2.16M across 232 centers shows strong system-wide performance. But these are $1M–$8.5M investments that require significant build-out time, staffing infrastructure, and regulatory compliance. Expect a multi-year ramp to stabilization.
Best for: Operators who want a services-based business with moderate investment, recurring tuition revenue, and flexible scaling potential. The model rewards local marketing skill and community relationships.
Sylvan's top-quartile average of $811K shows the upside for strong operators, while the median of $375K represents a more typical trajectory. Club Z!'s home-based model ($41K–$57K total investment) is ideal for owner-operators who want to minimize overhead while building a client base. Kumon's $2,000 initial fee makes it the most accessible franchise in education, though the per-student royalty model means your fee burden scales directly with enrollment.
Best for: Buyers who want a differentiated business in a growing market segment, with moderate investment and multiple revenue streams (classes, camps, parties, after-school programs).
Code Ninjas centers averaging $241K with a median of $226K set realistic expectations for coding-focused enrichment. School of Rock's franchised schools at $672K average represent the higher end — and the fact that company-owned schools average $925K suggests room for optimization. Mobile-first models like Snapology and Bricks 4 Kidz offer the lowest barriers to entry in the enrichment space.
Royalty structures in education franchises are more varied than in most industries, and comparing them requires looking beyond the headline percentage.
At the low end, Primrose Schools charges 3% of Gross Revenues for its Brand Fund — one of the lowest ongoing fee burdens in the childcare space. Celebree School and Kiddie Academy both charge 7%, while Goddard School is at 10%.
In tutoring, the range is wider. Club Z! charges 8%. Huntington is at 9.5%. Mathnasium layers a 10% royalty (minimum $1,500/month) with a $650/month base royalty — meaning a center doing $15,000/month in Gross Receipts pays $2,150/month in royalties alone, an effective rate of over 14%. Sylvan Learning at 11% has the highest pure percentage in our dataset.
Kumon's per-student model is the outlier. At $36–$43 per student per month, the effective royalty rate depends entirely on your tuition pricing. If you charge $150/month per student, the royalty represents roughly 24–29% of that student's tuition. If you charge $250/month, it drops to 14–17%. This is a fundamentally different economic model from percentage-based royalties.
The Tutoring Center uses a flat $1,500/month royalty — which is advantageous for higher-revenue operators but can be a burden during the ramp-up period.
In enrichment, most brands cluster at 7–8%: Bricks 4 Kidz and Engineering For Kids at 7%, Code Ninjas and School of Rock at 8%. These are relatively standard structures.
The total fee burden is what matters. Add the royalty to marketing fund contributions (1–3% at most brands), technology fees, and any other ongoing payments disclosed in Item 6. A brand with a 7% royalty plus a 2% marketing fund and a $300/month tech fee may cost more in practice than a brand with an 8% royalty and no additional fees.
Home-based and mobile-model franchises. Club Z! ($41K–$57K total investment) is the most affordable tutoring franchise. Bricks 4 Kidz, Engineering For Kids, and Challenge Island all have initial fees under $50,000, though total investment depends on whether you operate mobile-only or lease a facility. Kumon's $2,000 initial franchise fee is the lowest in all of franchising, though total investment including lease and build-out adds to this.
Center-based tutoring and coding franchises. iCode ($77K–$165K), Sylvan Learning ($140K–$299K), Mathnasium ($189K–$249K), and Snapology ($187K–$286K) fall in this range. These typically require a retail or commercial lease with classroom build-out, furniture, and technology.
Larger enrichment centers and smaller childcare operations. School of Rock and Bach to Rock typically fall here due to studio build-out requirements including soundproofing and instruments. Lightbridge Academy's lower range ($1.1M) approaches this tier.
Full-service childcare facilities. Lightbridge Academy ($1.1M–$2.8M), Goddard School ($5.2M–$8.6M), and Primrose Schools ($6.2M–$8.6M) require purpose-built or extensively renovated facilities, typically involving commercial real estate, construction, licensing, and SBA or conventional financing.
Maturity is the strongest predictor. Kiddie Academy's data makes this explicit: mature academies averaged $2.19M in Gross Revenue, with top-quartile operators at $3.1M. The Learning Experience's year-over-year data shows growth from $1.98M average (2022) to $2.16M (2024) as the system matures. Education businesses take time to build enrollment, reputation, and staff quality. Model your expectations around a 2–4 year ramp, not year-one projections.
Revenue model matters more than brand. Childcare generates $2M+ per location because it serves dozens or hundreds of children daily on a full-time basis. Tutoring serves fewer students per hour at lower price points. Code Ninjas' $241K average vs. School of Rock's $672K vs. Kiddie Academy's $2.19M are not quality differences — they reflect fundamentally different business models with different capital requirements, staffing needs, and lifestyle implications.
Expense structure varies dramatically. Kiddie Academy's disclosure is instructive: labor at 46% of revenue, occupancy at 16%, and miscellaneous at 12% leave a gross profit margin of roughly 26%. Childcare is labor-intensive by regulation (staff-to-child ratios are mandated). Tutoring and enrichment typically have more favorable labor economics since instructors serve larger groups.
Territory size drives enrichment performance. Snapology's data ties performance directly to protected area size measured in children aged 0–14. Larger territories produce more revenue — but also require more marketing investment and operational logistics to serve.
By average gross revenue, childcare brands lead: Kiddie Academy's mature academies average $2,193,070 and The Learning Experience averages $2,163,703 across 232 centers. But these require $1M–$8.5M in investment. Among lower-investment options, School of Rock franchised schools average $672,488, and Sylvan Learning's top quartile averages $810,698.
It depends on the model. A home-based tutoring franchise like Club Z! can be started for $41K–$57K. Center-based tutoring and coding franchises typically require $100K–$300K. Full-service childcare facilities like Goddard School ($5.2M–$8.6M) and Primrose Schools ($6.2M–$8.6M) require multi-million dollar investments, usually with SBA financing.
Tutoring franchises like Club Z! and some enrichment models can work with a semi-absentee operator once systems are established. Childcare franchises generally require active involvement due to licensing requirements, staffing complexity, and regulatory oversight. Enrichment franchises vary — mobile models like Bricks 4 Kidz are more manageable semi-absentee than studio-based models like School of Rock.
Item 19 is where franchisors voluntarily disclose how existing franchisees have performed financially. All 22 brands in this guide make a Financial Performance Representation — an unusually high rate compared to other franchise industries. Most report average and median gross revenues broken down by quartile, tenure, or location type. A few (Kiddie Academy, Celebree School, School of Rock) go further and disclose expense breakdowns or operating profit data.
For center-based tutoring ($100K–$300K investment), industry data suggests 12–24 months to reach breakeven. Childcare facilities take longer due to enrollment ramp-up periods — Kiddie Academy's distinction between "mature" and non-mature academies implies a stabilization period of several years. Home-based models like Club Z! have the fastest path to breakeven given their minimal overhead.
Kumon's $2,000 initial franchise fee is the lowest in franchising, but the per-student royalty ($36–$43/month per student, increasing in 2026) creates an ongoing cost structure that scales with enrollment. Kumon has over 1,400 US centers and strong brand recognition, particularly in math and reading. The FDD includes financial performance data, but the key question is whether the per-student royalty model works in your local market given your expected tuition pricing.
What is the average time to enrollment stabilization in your system? Compare the answer to what Kiddie Academy's Item 19 data shows about mature vs. non-mature academy performance. Childcare enrollment ramp-up can take 2–4 years.
What is the actual total fee burden as a percentage of gross revenue? Add royalty + marketing fund + technology fees + any other Item 6 fees. Mathnasium's layered structure (10% royalty + $650/month base + $250/month + 2% marketing) can exceed 14% of Gross Receipts for smaller centers.
How is your territory defined and protected? Some brands define territories by geography, others by population of children in a specific age range (Snapology uses children aged 0–14). Understanding what you're buying is critical, especially in suburban markets where competing franchisees of the same brand may be nearby.
For childcare: what are the licensing requirements and timeline in my state? State-by-state licensing, staff-to-child ratios, and facility requirements vary enormously and directly affect your build-out timeline and operating costs.
For enrichment: what percentage of revenue comes from recurring programs vs. one-time events? Camps, birthday parties, and special events can be significant revenue drivers — but recurring after-school programs and classes provide more predictable cash flow. Ask existing franchisees how their revenue breaks down.
Childcare, tutoring, and enrichment are fundamentally different businesses that happen to share an industry label. The right choice depends on your available capital, risk tolerance, operational style, and long-term goals. A $50K tutoring territory and a $7M childcare build-out are both "education franchises" — but they require entirely different skills, timelines, and financial planning.
The FDD data in this guide gives you a starting point for comparing real performance across brands. Use it to narrow your options, then read the full FDD for any brand you're seriously considering. Our franchise advisors can help you assess which opportunity fits your budget and goals at no cost to you.
Javier is an experienced franchise industry professional with a focus on development, operations, and performance. With almost a decade of experience in the industry, he has witnessed both the successes and failures of franchise owners. Javier strongly believes that buying a franchise is not just an investment, but a life-changing event that presents a unique opportunity for personal and professional growth. He enjoys helping aspiring franchise owners navigate the decision-making process and increase their chances of success.
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