Legacy Academy Franchise Cost and 3 Alternative Education Franchises (2024)
Legacy Academy franchise is a nationally acclaimed preschool and childcare center that nurtures children, helping prepare them for school, career, and life. The year of foundation is 1998 and has many locations throughout the US nowadays. Their programs are based on the latest research in child development and education. Their aim is to promote cognitive, social, emotional, and physical development in children. The Academy provides a safe, enriching, and stimulating environment for children to learn and grow. They have a highly trained and professional staff dedicated to provide the best possible care for each child. The staff is passionate about their work and committed to make a difference in the lives of children.
All Legacy Academy schools are NAEYC accredited or in process. Legacy claims to have developed a curriculum that no other school has. The Legacy Academy curriculum, Framework For Their Future, was designed by a team of child development and childcare professionals.
Melissa Turner (President, and Owner of Legacy Academy) runs Legacy Academy. According to its website, Legacy Academy has 15 locations.
How is Legacy Academy Franchise Positioned in the Children’s Programs Industry?
Children’s Programs are typically activities and programs children can participate in after school or during the summer. These programs are popular for parents that both work full-time and would want their children to develop hobbies in extracurricular activities. Furthermore, schools are now looking for well-rounded students, not only should they excel in school but they should also be involved in other activities to be “the full package.”
Many Children’s Programs businesses overlap with Children’s Education Programs, especially because some of the sub-sectors like tutoring are also after-school activities. However, businesses in the Children’s Programs industry focus outside of academics. Many of these programs involve physical activity like sports, swimming, or outdoor play. Another popular type of program uses the creative arts, teaching kids music, dance, or other types of performance. These programs are a step above what is available in schools, but more cost-effective for parents compared to private lessons.
The After-School Program industry has over 230,000 open businesses in the U.S. Supporting more than 1.1 million jobs and with a $22 billion market size.
How Much is a Legacy Academy Franchise?
The initial Legacy Academy Franchise Fee is $75,000. You have to pay this upfront fee when opening a Legacy Academy franchise.
Legacy Academy Franchise Cost
The estimated total investment necessary to begin the operation of a Legacy Academy Franchise ranges from $3,524,600 – $6,135,500.
Legacy Academy Franchise Requirements
Legacy Academy has a cash requirement of $250,000.
Owning a Legacy Academy Franchise Requires Ongoing Fees
Royalty: 5% of Gross Revenue
Ad Royalty: 1% of Gross Revenue
In our online business platform Vetted Biz, we have reviewed over 1,600 businesses and franchises. Of the businesses we have reviewed in the Children’s Programs space, we have seen a range of investment amounts start at $4,710 all the way up to $4,319,450. Much of what factors into the investment amount is what type of children’s activity it will be and how large would you want the space to be based on how many children you want to participate. Based on our research, the average royalty fee takes up 7.1% of gross revenue, and the average marketing fee is 1.9%.
Legal troubles for Legacy Academy
Legacy Academy has in its record multiple suits. Franchisees have alleged that the franchisor misled them by providing old information. It is highly recommended to do your full due diligence. And not miss anything in order to not be in trouble later.
Alternatives to a Legacy Academy Franchise
Kiddie Academy
Kiddie Academy Educational Child Care is an American franchise system of specially designed early childhood learning and child care facilities. Offering programs for children between six weeks and 12 years of age with over 250 franchised academies in 30 states and the District of Columbia. Kiddie Academy is headquartered in Abingdon, MD.
The total investment necessary to begin the operation of a Kiddie Academy Franchise is $417,000 – $1,039,000 for a leased Kiddie Academy franchise location. And $3,722,000 – $4,530,000 for a purchased Kiddie Academy franchised location. This includes between $65,000 and $145,000 in Initial Fees that you will have to pay to the franchisor or an affiliate.
Royalties are 7% of Gross Revenues, Brand Building Fund Contribution is 2% of Gross Revenues among the major ongoing costs of running a Kiddie Academy Franchise.
In 2021, the median gross revenue for Kiddie Academy franchises was $1,543,161.
Over the last three years, the company has been expanding. While they have had only 1 company-operated unit, franchising units have increased. Over the last three years, franchises have opened at a rate of 24 units a year.
The Goddard School
The Goddard School is an early childhood education provider with more than 500 franchised Schools in 37 states and hundreds of markets, including the Atlanta, Boston, Chicago, Houston, New York City, Philadelphia, Portland, and St. Louis markets. Goddard Systems, Inc. (GSI) franchises The Goddard School from its headquarters in King of Prussia, PA.
If you lease the school facility and the landlord constructs the improvements, the total investment necessary to begin the operation of The Goddard School franchise is from $818,300 to $1,090,100 for a school and from $390,650 to $670,950 for an associated satellite school. This includes $259,000 to $283,000 that you have to pay to the franchisor or affiliate for a school and $61,250 to $67,750 for an associated satellite school. If you purchase the land and build the school facility, the total investment necessary to begin the operation of The Goddard School franchise is from $3,844,300 to $7,360,100 for a school and from $3,416,650 to $6,940,950 for an associated satellite school. This includes $259,000 to $283,000 that you have to pay to the franchisor or affiliate for a school and $61,250 to $67,750 for an associated satellite school.
Royalty Fee for a Goddard School Franchise is 7% of Gross Receipts of the School. If you are an existing franchisee purchasing an additional (new) franchise for a reduced initial license fee, the royalty fee reduces during the first year of operation of the new School to 2% of Gross Receipts for months 1-3, 4% for months 4-6, and 6% for months 7-12. The Marketing Fund Marketing Fee is 4% of Gross Receipts, including the Gross Receipts derived from any Satellite Location or Annex, per month.
The Median Revenue for a Goddard School Franchise in 2021 was $1,669,054 while the EBITDA was $321,938.
Over the last three years, the company has been expanding. While they have no company-operated units, franchising units have increased. Over the last three years, franchises have opened at a rate of 30 units a year.
The Learning Experience
The Learning Experience is a childcare business that claims to provide a “curriculum that develops the whole child.”
The total investment necessary to begin the operation of a Center is between $589,419 and $5,225,419 per Center, depending on whether you purchase an existing Center, develop your own Center, or retain the franchisor to develop your Center (excluding the purchase of land). This includes payments that you have to pay to the franchisor or affiliate that range from $525,000 to $2,625,000 (if you purchase an existing Center), $162,399 to $212,399 (if you develop your own Center), and $267,399 to $384,899 (if the franchisor develops the Center for you). If you sign a Multiple Franchise Center (MFC) Addendum to develop franchised Centers, then your total expenses will range from $2,295,676 to $20,839,676.
Royalties are 7% of the Center’s Gross Revenue, which includes all revenue related to the Center. And the Brand Awareness Fund is currently, 1% of Gross Revenue. However, the franchisor has the right to increase the minimum payment up to 2.5% of Gross Revenue.
The median gross sales for a mature Center in 2021 were $1,419,992.
Over the last three years, the company has been expanding. Both company-owned and franchised units have increased. Over the last three years, franchises have opened at a rate of 26 units a year. Company-owned units also increased from 23 in 2019 to 34 in 2021.
Conclusion
The preschooling and school business in the USA is big and Legacy Academy offers a chunk of it. However, there are alternatives to a Legacy Academy franchise that have a more established network.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Children’s Programs Industry.
