Tierra Encantada franchise
2024 filing · May 7, 2024GrowingShares sales figures
Tierra Encantada at a glance
A Spanish-immersion child care center with fresh-cooked organic meals and cloth diapers. At the end of 2023 there were 11 Tierra Encantada locations in the US, 2 franchised and 9 company-owned, so most are run by the company itself.
The business
- Franchisor
- Tierra Encantada Franchising, LLC
- The company that sells the franchises
- Franchising since
- 2019
- 5 years of selling franchises
- Franchisor based in
- Minneapolis, Minnesota
What you pay
- Cost to open
- $1.46M–$3.06M
- Fee, build-out and opening working capital
- Franchise fee
- $60,000
- Paid once, when you sign
- Royalty
- 7%
- The greater of 7% of gross sales or $500 a week
- Brand fund
- 1%
- 1% of gross sales, paid with the royalty
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 11
- Franchised and company-owned
- Franchised
- 2
- Company-owned
- 9
- Change in 3 years
- +2
- Franchised locations, 2021–2023
- States
- 4
- Most in Minnesota, Illinois and Texas
Support and records
From Tierra Encantada Franchising, LLC’s 2024 filing; revenue and net income from its audited financial statements, page 310; 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
Tierra Encantada among all franchises with the same figure.
| Figure | Tierra Encantada | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $2,258,779 | Costs more than 93% of franchises |
| Franchise feePaid once, when you sign | $60,000 | Higher than 88% of franchises |
| RoyaltyShare of sales paid to the franchisor | 7% | Higher than 70% of brands with a set rate |
| US locationsFranchised and company-owned | 11 | Fewer than 60% of franchises |
How much a Tierra Encantada franchise costs
Opening one Tierra Encantada costs an estimated $1,455,443 to $3,062,115. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are lease, real estate and improvements ($675,222 to $1,856,899) and additional funds/working capital (pre-opening – first three months of operation) ($142,533 to $275,770). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $48,000 | $60,000 | |
| Professional Services | $66,372 | $115,080 | |
| Lease, Real Estate and Improvements | $675,222 | $1,856,899 | |
| Security, Fire, Video Surveillance, and Keycard Access System | $67,280 | $117,366 | |
| Outdoor Fence and Playground Area | $149,085 | $205,916 | |
| Signage | $34,107 | $52,458 | |
| Facility Furniture, Equipment, and Supplies | $219,157 | $270,246 | |
| Computer Equipment and Software | $4,123 | $5,047 | |
| Business Licenses and Certifications | $500 | $1,419 | |
| Insurance | $1,597 | $16,514 | |
| Initial & Grand Opening Training | $5,000 | $11,170 | |
| Opening Advertising/Marketing | $35,000 | $50,000 | |
| Pre-Opening Payroll Expenses | $7,467 | $24,230 | |
| Additional Funds/Working Capital (Pre-Opening – First Three Months of Operation) | $142,533 | $275,770 | |
| Total | $1,455,443 | $3,062,115 |
Source: Tierra Encantada Franchising, LLC, 2024 filing, page 29
Tierra Encantada franchise fee
The franchise fee is $60,000. You pay it when you sign the franchise agreement.
Source: Tierra Encantada Franchising, LLC, 2024 filing, page 18
Royalty and ongoing fees
| Royalty | The greater of 7% of gross sales or $500 a week. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid with the royalty. |
| Renewal Fee | $5,000 |
| Additional Assistance or Additional Training | $500 per day per person, plus expenses. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Tierra Encantada Franchising, LLC, 2024 filing, page 20
Other fees as filed, from pages 22–23. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Tierra Encantada publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Tierra Encantada Franchising, LLC, 2024 filing, page 76
SBA loans to Tierra Encantada franchisees
Lenders approved 4 SBA 7(a) loans for Tierra Encantada franchisees from 2021 to 2026, $9.9M in all. None has been paid off or charged off 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
How Tierra Encantada compares
Of the 40 daycare franchises on this site, Tierra Encantada is the 33rd cheapest to open and the 18th largest by number of locations.
| Figure | Tierra Encantada | Typical daycare brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $1.46M | $737K | $222K |
| Cost to open, high end | $3.06M | $1.44M | $477K |
| Franchise fee | $60K | $65K | $40K |
| Royalty | 7% | 7% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 11 | 10 | 21 |
| Closed or left per year | 0% | 1.1% | – |
| 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 |
|---|---|---|---|---|
| 2021 | 1 (+1) | 5 | +1 | 0 |
| 2022 | 2 (+1) | 9 | +1 | 0 |
| 2023 | 2 (0) | 9 | 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: Tierra Encantada Franchising, LLC, 2024 filing, page 90
Where Tierra Encantada locations are
At the end of 2023, Tierra Encantada had locations in 4 states. The most are in Minnesota, Illinois and Texas.
- Minnesota8
- Illinois1
- Texas1
- Virginia1
Source: Tierra Encantada Franchising, LLC, 2024 filing, page 91
Who owns Tierra Encantada?
Tierra Encantada franchises are sold by Tierra Encantada Franchising, LLC. It is a subsidiary of Tierra Encantada Inc.
From Tierra Encantada Franchising, LLC’s 2024 filing, page 12.
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: Tierra Encantada Franchising, LLC, 2024 filing, litigation on page 18, bankruptcy on page 18
Tierra Encantada filings
The figures on this page come from Tierra Encantada Franchising, LLC’s 2024 filing, issued May 7, 2024, on record with the Minnesota Department of Commerce.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | May 7, 2024 | Minnesota | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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