For the fourth consecutive year, Primrose Schools® was ranked number 1 in the child care category in Entrepreneur magazine’s Franchise 500® awards. Placement in the Franchise 500® is a highly sought-after and competitive honor, with this year’s rankings awarded based on applications from over 1,100 franchisors. On the overall list, Primrose® came in at no. 54, an improvement from 2019.
The rankings are based upon five main criteria:
- Brand strength
- Financial strength and stability
- Size and growth
- Costs and fees
The Entrepreneur Franchise 500® rankings are the world’s first, best and most comprehensive franchise ranking. Each year we are proud to be recognized among them, and even more excited to continuously claim the top spot in our category. So, how do we do it? Let’s take a deeper look into the five components that I believe keep us at the top of the class.
The Primrose brand is a beloved one, and we’re sharing that love with more families across the nation as we continue to grow. Primrose was founded in 1982 and began franchising in 1988, giving us roots that are nearly 40 years deep.
A track record of success is important, but what really sets us apart? — it’s our world-class, award-winning, proprietary curriculum. Informed by leading early education research, our Balanced Learning® approach equips children with the skills and character traits they need to be the successful leaders of tomorrow.
Every aspect of our brand from Real Estate, Franchising, School Excellence to our Franchise Owners contribute to our brand strength. The organization’s passion and dedication allowed us to experience another impressive year in 2019. Last year, in addition to Entrepreneur, we ranked No. 5 in the high-investment category on Forbes’ list of Best Franchises to Buy and were also recognized on the Franchise Times Top 200+ list for the eleventh consecutive year. We’re proud of the independent validation of our brand and expect continued success in 2020.
Financial Strength and Stability
There’s never been a stronger demand for early education and care—in fact the $57 billion childcare industry is expected to accelerate to 4.5% CAGR per annum over the next four years.1
Parents today recognize the critical role that early education plays in a child’s brain and social development. Primrose has long been recognized as a leader in early education and care and our ability to continually improve as science reveals more about child development is one of the many reasons why parents choose Primrose. No Primrose schools that have opened within the past 10 years have permanently closed.
Primrose Franchise Owners also have the highest SBA loan repayment success rate in the industry, which is another testament to our financial strength and stability2 . Designed to be both financially and emotionally satisfying, Primrose offers a fundamentally sound business paired with a meaningful, rewarding career.
Primrose provides significant support to its Franchise Owners —prior to opening, we support everything from site selection and the construction process to training, marketing, and more. Once a school is open, the Franchise Owner receives ongoing support from the Primrose Support Center Team. That’s why many people can become a successful Primrose Franchise Owner, even without a background in early education and care. Read more about becoming a Primrose Franchise Owner and the support we provide.
Size and Growth
28 new schools – a 7% growth rate – opened last year and we expect this to accelerate in future years. There are over 400 schools in the U.S., and we expect that number to continue to increase as more people experience the Primrose brand. One aspect of our brand that has helped support our growth is our flexibility. Real Estate and construction costs continue to rise, which can make the traditional model of ownership more difficult. We are beginning to secure more lease and build-to-suit opportunities, which have proven successful for our Franchise Owners in allowing them to bring premium early education and care to markets which previously would have been difficult to enter. We’re also seeing increased interest from seasoned franchise owners in other industries and multi-unit operators who see early education as a proven avenue for entrepreneurial expansion. In addition, more employers are recognizing the need and benefits of having on-site childcare, as we continue to open new Primrose on Premise® locations.
Costs and Fees
Primrose has a dedicated Franchise Finance team to guide Franchise Owners through the financing process. The Finance team maintains a group of National Preferred Lenders who provide market leading financing alternatives to assist Franchise Owners with their current and future growth strategies. We are also a verified member of the Franchise Registry by FRANdata. To learn more about the typical costs and fees associated with owning a Primrose school, please visit our website, PrimroseFranchise.com
1IBISWorld Industry Reports, Day Care in the U.S., Child Education & Development Center Franchises in the U.S.
2Based on a review of SBA loan performance over a 10-year period from 2008-2018 by FRANdata comparing peer brands with at least 50 SBA loans during that period.