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Children's Lighthouse franchise

2024 filing · April 30, 2024GrowingShares sales figures

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Children's Lighthouse at a glance

A private preschool and child care school for children from six weeks to 12 years old. At the end of 2023 there were 69 Children's Lighthouse locations in the US, all franchised.

The business

Industry
Daycare
Also listed in education
Franchisor
Childrens Lighthouse Franchise Company
The company that sells the franchises
Who runs it
Owner
An owner must run it day to day
Franchisor based in
Fort Worth, Texas

What you pay

Cost to open
$1.07M–$1.47M
Building leased from a developer
Franchise fee
$85,000
Paid once, when you sign
Royalty
7%
3.5% of gross revenue for the first six months, then 7%
Brand fund
0.5%
0.5% of gross revenue, paid monthly; it can rise to 2%
Agreement length
20 years
Territory
Limited
Limited protection
Franchisor financing
None offered
SBA Franchise Directory
Not listed
Lenders check this list before an SBA loan

Where it is

US locations, 2023
69
Franchised and company-owned
Franchised
69
Company-owned
0
Change in 3 years
+11
Franchised locations, 2021–2023
States
9
Most in Texas, North Carolina and Kansas

Support and records

Shares sales figures
Yes
$1.94M average per location
Initial training
3 programs
Owners' training: 40 hours in class; Directors' training: 40 hours in class; Pre-opening training: 40 hours on the job
SBA loans approved
106
2001–2026
Lawsuits disclosed
Yes
Bankruptcy disclosed
None
Franchisor revenue, 2023
$9.6M
The company, not one location
Franchisor net income
$5.95M
Latest filing
Apr 30, 2024
2024 filing

From Childrens Lighthouse Franchise Company’s 2024 filing; revenue and net income from its audited financial statements, page 68; SBA status from the SBA Franchise Directory, October 28, 2026.

Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.

Where it ranks

Children's Lighthouse among all franchises with the same figure.

FigureChildren's LighthouseAmong all franchises
Cost to open, midpointHalfway between the low and high estimate$1,270,815Costs more than 87% of franchises
Franchise feePaid once, when you sign$85,000Higher than 97% of franchises
RoyaltyShare of sales paid to the franchisor7%Higher than 70% of brands with a set rate
US locationsFranchised and company-owned69More than 70% of franchises
Sales per locationYearly, as the brand reports it$1,941,556Higher than 86% of brands that share sales figures
Sales against cost to openYearly sales over the cost midpoint1.5×Lower than 53% of brands that share sales figures

How much a Children's Lighthouse franchise costs

Opening building leased from a developer costs an estimated $1,074,580 to $1,467,050. That covers the franchise fee and everything else needed to open, through the first months of working capital.

The biggest costs are furniture, fixtures, and equipment ($343,580 to $421,000) and additional funds (3 months) ($275,000). Here is every line of the estimate as filed:

What it pays forRangeLowHigh
Franchise Fee$60,000$85,000
School Development Fee$25,000
Lease Deposit$50,000$150,000
Developer Deposit$0$75,000
Project Management$25,000$30,000
Utility and Security Deposits$5,000$10,000
Furniture, Fixtures, and Equipment$343,580$421,000
Playground Equipment.$178,000$213,000
Financing Costs$5,000$27,500
Interim Interest$40,000$70,000
Opening Training Fee$15,000$25,000
Buses$2,500$5,000
Pre-Opening Marketing Expenses$35,000
Travel and Living Costs while Training$4,000$6,000
Insurance and Professional Fees$10,750$13,250
Agency License$750$1,300
Additional Funds (3 months)$275,000
Total$1,074,580$1,467,050

Source: Childrens Lighthouse Franchise Company, 2024 filing, page 16

Children's Lighthouse franchise fee

The franchise fee is $85,000. You pay it when you sign the franchise agreement.

Source: Childrens Lighthouse Franchise Company, 2024 filing, page 11

Royalty and ongoing fees

Royalty3.5% of gross revenue for the first six months, then 7%.
Brand or marketing fund0.5% of gross revenue, paid monthly; it can rise to 2%.
Software Fees and Upgrades$49 per month as of the date of this disclosure document
Local Advertising1% of Gross Revenue

The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.

Source: Childrens Lighthouse Franchise Company, 2024 filing, pages 12 and 13

Other fees as filed, from page 13. The filing lists every fee, including late fees and audit costs.

Sales and earnings

Shares figures Children's Lighthouse publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.

Average revenue
$1,941,556
Median revenue
$1,906,407

Yearly figures for 2023, covering franchised schools open all of 2023 (67 locations). The average is about 1.5 times the midpoint of the cost to open.

Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.

Source: Childrens Lighthouse Franchise Company, 2024 filing, page 44

SBA loans to Children's Lighthouse franchisees

Lenders approved 106 SBA-backed loans for Children's Lighthouse franchisees from 2001 to 2026, $235.4M in all: 78 7(a) loans and 28 504 loans. All 55 that have ended were paid in full; none was charged off. The other 51 haven’t ended yet.

A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.

Source: SBA 7(a) and 504 loan data, as of September 30, 2026

Growth and closures

Share of franchised locations, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.

MeasureChildren's LighthouseTypical daycare brandTypical franchise
GrowthNet change in franchised locations+3% / +19%+4.3% / +19%+1.2% / +10%
ClosuresTerminated, not renewed or stopped operating0% / 0%0% / 4.5%3.9% / 16%
Bought backLocations the franchisor took back0% / 0%0% / 0%0% / 0%

Typical daycare brand is the median of the 15 brands in daycare franchises with three years of counts.

How Children's Lighthouse compares

Of the 40 daycare franchises on this site, Children's Lighthouse is the 31st cheapest to open and the 7th largest by number of locations.

FigureChildren's LighthouseTypical daycare brandTypical franchise
Cost to open, low end$1.07M$737K$222K
Cost to open, high end$1.47M$1.44M$477K
Franchise fee$85K$65K$40K
Royalty7%7%6%
Brand fund0.5%2%2%
Sales per location$1.94M$2.19M$794K
US locations691021
Shares earnings figuresYes29 of 402,147 of 3,352

Typical is the median across the 40 brands in daycare franchises; typical franchise, across every brand here.

Locations opened and closed

11 opened
0 closed or left
Franchised locations, last 3 years
2021
6 opened0 closed or left
64 (+6)
2022
3 opened0 closed or left
67 (+3)
2023
2 opened0 closed or left
69 (+2)
YearFranchisedCompany-ownedOpenedClosed
202164 (+6)0+60
202267 (+3)0+30
202369 (+2)0+20

Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.

See which brands grew most in the fastest-growing franchises rankings.

More in the guides: daycare franchise costs and franchise failure rates.

Source: Childrens Lighthouse Franchise Company, 2024 filing, page 46

Source filing (2024, PDF)

Where Children's Lighthouse locations are

At the end of 2023, Children's Lighthouse had franchised locations in 9 states. The most are in Texas, North Carolina and Kansas.

  • Texas53
  • North Carolina6
  • Kansas3
  • California2
  • Alabama1
  • Colorado1

Source: Childrens Lighthouse Franchise Company, 2024 filing, page 47

Who owns Children's Lighthouse?

Children's Lighthouse franchises are sold by Childrens Lighthouse Franchise Company. Its filing names no parent company.

From Childrens Lighthouse Franchise Company’s 2024 filing, page 8.

Children's Lighthouse filings

The figures on this page come from Childrens Lighthouse Franchise Company’s 2024 filing, issued April 30, 2024, on record with the Minnesota Department of Commerce.

Children's Lighthouse filings, newest first
FilingIssuedRegistryOn this page
2024 filingApril 30, 2024MinnesotaCosts, fees and locations, 2021–2023

Each link opens the filing as a PDF. See the newest filings across all brands.

Other daycare franchises

All daycare franchises

Children's Lighthouse is also on these lists: education franchises.

Compare Children's Lighthouse side by side