Lightbridge Academy
Lightbridge Academy offers early learning programs for infants to kindergarten-aged children, including summer camps. Known for comprehensive educational centers, it operates in the early childhood education sector.
Lightbridge Academy franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operating a Lightbridge Academy Center ranges from $834,868 to $1,409,735 for a leased center and between $834,868 to $2,609,735 for a leased center that requires leasehold improvements. For a purchased center, the investment is between $5,801,350 to $8,122,575 [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 and must be paid when you sign the franchise agreement. This fee is not refundable under any circumstances. [p.15, p.109]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of all "Gross Revenues" of the Lightbridge Academy Center during the preceding month. For the first six months of operation, it is reduced to 4%. The franchise agreement may vary materially upon renewal, potentially including higher royalty and advertising fees [p.107]. Advertising fees are included in the royalty payment as they represent sales-based royalties related entirely to the use of the Company's intellectual property [p.92].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.6]. This means you cannot freely sell or transfer your franchise without the franchisor's approval under normal circumstances.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable period, which cannot exceed thirty (30) days after written notice [p.241]. This isn't specified in the excerpts for other grounds of termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees or transferees.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, corporate-owned locations, and other channels of distribution or competitive brands that the company controls within your Development Area [p.46, p.45]. Additionally, the franchisor does not offer any option, right of first refusal, or similar rights to acquire additional franchises in neighboring locations [p.46, p.47].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for new franchisees, which includes training for up to four individuals (Franchisee and its Director) at no additional cost. For existing franchisees opening additional centers or those under a Multi-Unit Operator Agreement, training is provided for two individuals. Additional personnel require payment of the current tuition rate. The franchisor also requires Regional Managers for multi-unit operations to complete the standard training program within 90 days of assuming their positions. This isn't specified in the excerpts regarding ongoing support beyond initial and required training. [p.118, p.204]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Lightbridge Franchise Company, LLC, does not make any financial performance representations other than the preceding one. They also do not authorize their employees or representatives to make such representations either orally or in writing [p.72]. However, if you are purchasing an existing Center, they may provide actual records of that Center [p.72]. If you receive any other financial performance information or projections, you should report it to the franchisor's management and relevant regulatory agencies as instructed [p.72].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling merchandise that is approved in advance by the franchisor. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than those available elsewhere [p.4].