Karter Schools franchise
2023 filing · May 3, 2023Shares sales figures
Karter Schools at a glance
A private school offering childcare, education and before- and after-school programs for infants to 12-year-olds. At the end of 2022 there were 3 Karter Schools locations in the US, all company-owned.
The business
- Franchisor
- Karter Schools, Inc
- The company that sells the franchises
- Franchising since
- 2022
- Franchisor based in
- Sterling, Virginia
What you pay
- Cost to open
- $2.47M–$9.27M
- A freestanding school on owned land
- Franchise fee
- $75,000
- Paid once, when you sign
- Royalty
- 5%–6%
- 5% of gross sales in the first two years, then 6%, paid weekly once enrollment reaches a set level
- Brand fund
- 2%
- 2% of gross sales, paid monthly
- Renewal fee
- See terms
- 10% of the then current initial franchise fee
- Agreement length
- 25 years
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 3
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 3
- Change in 3 years
- 0
- Franchised locations, 2020–2022
- States
- 1
- Most in Virginia
From Karter Schools, Inc’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Karter Schools among all franchises with the same figure.
| Figure | Karter Schools | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $5,873,838 | Costs more than 97% of franchises |
| Franchise feePaid once, when you sign | $75,000 | Higher than 95% of franchises |
| US locationsFranchised and company-owned | 3 | Fewer than 78% of franchises |
How much a Karter Schools franchise costs
Opening a freestanding school on owned land costs an estimated $2,473,425 to $9,274,250. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are real estate development costs ($2,000,000 to $8,000,000) and architect fees ($50,000 to $350,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| PRE-OPENING COSTS Initial Franchise Fee | $75,000 | ||
| Launch Fee | $20,000 | $40,000 | |
| Initial Training Fee | $35,000 | ||
| Interior Design Fee | $25,000 | $60,000 | |
| Real Estate Development Costs | $2,000,000 | $8,000,000 | |
| Architect Fees | $50,000 | $350,000 | |
| Opening Package | $100,000 | $300,000 | |
| Other Furniture, Fixtures, and Equipment | $10,000 | $68,000 | |
| Vehicle Monthly Payments | $2,700 | $6,000 | |
| Signage | $10,000 | $20,000 | |
| Management System | $10,500 | $15,500 | |
| Technology Services Fees | $7,225 | $7,450 | |
| Technology Fee | $6,000 | ||
| Utility Deposits | $10,000 | $20,000 | |
| Insurance Premiums | $5,000 | $12,000 | |
| Pre-opening Travel and Training Expense | $3,000 | $4,300 | |
| Accreditation | $4,000 | $5,000 | |
| Additional Funds | $100,000 | $250,000 | |
| Total | $2,473,425 | $9,274,250 | |
Source: Karter Schools, Inc, 2023 filing, page 19
Karter Schools franchise fee
The franchise fee is $75,000. You pay it when you sign the franchise agreement.
Source: Karter Schools, Inc, 2023 filing, page 11
Royalty and ongoing fees
| Royalty | 5% of gross sales in the first two years, then 6%, paid weekly once enrollment reaches a set level. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid monthly. |
| Technology Fee | $2,000 |
| Renewal Fee | 10% of the then current initial franchise fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Karter Schools, Inc, 2023 filing, page 12
Other fees as filed, from pages 13–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Karter Schools publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Karter Schools, Inc, 2023 filing, page 54
How Karter Schools compares
Of the 40 daycare franchises on this site, Karter Schools is the 38th cheapest to open and the 23rd largest by number of locations.
| Figure | Karter Schools | Typical daycare brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $2.47M | $737K | $222K |
| Cost to open, high end | $9.27M | $1.44M | $477K |
| Franchise fee | $75K | $65K | $40K |
| Brand fund | 2% | 2% | 2% |
| US locations | 3 | 10 | 21 |
| Shares earnings figures | Yes | 29 of 40 | 2,147 of 3,352 |
Typical is the median across the 40 brands in daycare franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 2 | 0 | 0 |
| 2021 | 0 (0) | 2 | 0 | 0 |
| 2022 | 0 (0) | 3 | 0 | 0 |
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: Karter Schools, Inc, 2023 filing, page 55
Where Karter Schools locations are
At the end of 2022, Karter Schools had locations in 1 state. The most are in Virginia.
- Virginia3
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Virginia | 0 | 3 | 3 |
Source: Karter Schools, Inc, 2023 filing, page 56
Who owns Karter Schools?
Karter Schools franchises are sold by Karter Schools, Inc.
From Karter Schools, Inc’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Karter Schools, Inc, 2023 filing, litigation on page 11, bankruptcy on page 11
Karter Schools filings
The figures on this page come from Karter Schools, Inc’s 2023 filing, issued May 3, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | May 3, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other daycare franchises
All daycare franchises
Karter Schools is also on these lists: education franchises.