LeafSpring Schools Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: School / education services
• Initial Investment (range): $52,000 to $55,000
• Franchise Fee: $87,500
• Royalty: 0% through month 3, 3% through month 12, then 6% of Gross Sales
• Marketing / Ad Fee: Up to 3% of Gross Sales; currently 1%
• Key additional recurring fees: Local advertising currently 1% of Gross Sales; cooperative contributions if established; possible training, audit, insurance reimbursement, and late fees
• Number of locations: 12 franchised and 1 company-owned at period end
• Best Fit: Manager-led owner with active oversight

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The disclosure lists an estimated initial investment of $52,000 to $55,000, with a separate initial franchise fee of $87,500. Based on the figures provided, the franchise fee is the largest clearly identified upfront cost.

The business also appears to require a dedicated operating structure, including a Principal Owner and a Director, and the disclosure references prototypical campuses with features such as dining area, gymnasium, shared recreational space, and multiple classrooms. That suggests the practical capital needs may extend beyond the narrow startup range shown, but the disclosure excerpt provided does not clearly establish a fuller buildout breakdown here.

On the numbers disclosed, the stated startup range is low in absolute terms, but that should be interpreted cautiously because the operating model itself appears facility- and staff-intensive.

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• Royalty: 0% of Gross Sales from opening through the 3rd month; 3% from the 4th through 12th month; 6% for the remainder of the term
• Advertising obligation: Up to 3% of Gross Sales across advertising fund, regional funds/cooperatives, and local advertising; currently 1%
• Advertising fund: Currently 0%
• Local advertising: Currently 1% of Gross Sales
• Cooperative: Amount determined by the cooperative when established
• Additional guidance: $1,000 per day plus travel and other costs
• Refresher training: $1,000 per day, up to 5 days per instance
• Late fees: $50 to $500
• NSF fee: $50
• Renewal fee: $750
• Subsequent franchise agreement fee: 10% of the then-current initial franchise fee

Overall, the core recurring fee load is moderate once the business is mature: a 6% royalty plus current advertising requirements. The stepped royalty structure reduces the burden in the first year, but other variable charges can add cost depending on compliance, training, insurance, and support needs.

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Yes, the FDD includes Item 19 financial performance data.

Franchised school gross sales

The disclosure reports historical Gross Sales for franchised schools from 2020 through 2024. For 2024, the disclosed schools ranged from:

• Low: $2,220,764
• High: $4,778,059
• Average: $3,537,789
• Median: $3,908,401

For context, the disclosed averages and medians by year were:

• 2020 average: $2,107,861 | median: $2,186,601
• 2021 average: $2,513,0235 | median: $2,767,280
• 2022 average: $2,924,743 | median: $3,230,214
• 2023 average: $3,214,067 | median: $3,434,703
• 2024 average: $3,537,789 | median: $3,908,401

The 2021 average is shown in the disclosure as $2,513,0235, and the disclosure does not clearly establish whether that figure contains a typographical error.

The spread in 2024 is meaningful. The highest reported school generated more than double the lowest reported school, which suggests notable unit-level variability even within the disclosed set.

The school-by-school 2024 gross sales listed were:

• #1: $2,220,764
• #2: $4,370,991
• #3: $4,778,059
• #4: $4,010,263
• #5: $2,338,392
• #6: $3,841,048
• #7: $2,906,158
• #8: $3,975,755
• #9: $4,110,791
• #10: $2,825,666

Additional expense and earnings table

The disclosure also includes a separate table showing:

• Net Revenue: $3,871,005 in 2024
• Cost of Goods Sold: ($2,223,823)
• Expenses: ($739,663)
• Rent: ($382,048)
• Operating Income: $525,471
• Depreciation & Interest: $31,422
• EBITDA: $556,893

The disclosure excerpt provided does not clearly establish whether this expense table reflects a franchised school, a company-owned school, or another specific subset, so it should be treated carefully.

Most importantly, revenue is not profit. The franchised school Gross Sales figures do not include costs of sales, operating expenses, rent, or other expenses needed to determine net income. The FDD also states that the franchisor did not audit franchisees' unit-level books and records, although it says it believes the data to be accurate.

There are also scope limits: 2 franchised schools were excluded because they did not match the current prototypical school format, and some listed schools opened during the reporting period, so not every unit has a full five-year history.

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• Model: B2C service business delivered through physical school locations
• Revenue pattern: Recurring revenue from ongoing school operations rather than one-time transactions
• Operations: Facility-based model with classrooms and shared spaces; requires a Principal Owner and a Director
• Staffing / infrastructure: Appears labor- and facility-intensive, with ongoing management, compliance, and operating oversight
• Technology: The disclosure indicates technology is significant

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Advantages

• Item 19 includes multi-year gross sales data for individual franchised schools.
• Reported 2024 median gross sales were $3,908,401, with several schools above $4 million.
• Royalty starts at 0% for the first 3 months and 3% through month 12 before reaching 6%.
• Outlet count was stable in the disclosed period at 12 franchised and 1 company-owned location at both start and end.

Considerations

• The model appears operationally intensive, with required active oversight and a designated Director.
• The disclosed 2024 gross sales range is wide, indicating meaningful unit-to-unit variation.
• The franchised school sales figures are unaudited and exclude expenses, so they do not show franchisee profit.
• Two franchised schools were excluded from the Item 19 gross sales presentation because they did not match the current prototype.
• Territory is non-exclusive, which can limit geographic protection.

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This franchise may fit an owner who is comfortable overseeing a structured, location-based operating business with management depth, recurring service delivery, and significant day-to-day execution demands.

It likely does not fit someone seeking a simple absentee model, a lightly staffed operation, or a business where revenue figures can be directly read as owner earnings.

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• The franchise term is 15 years, which creates a long contractual commitment.
• Monetary defaults reportedly have a 10-day cure period, and operational defaults reportedly have a 30-day cure period.
• Non-curable defaults include items such as failure to construct, decorate, equip, and maintain the school, material misrepresentation, and felony conviction.
• If the franchisor must obtain insurance on the franchisee’s behalf, reimbursement can be 110% of the costs and premiums paid.
• Additional support, refresher training, supplier approval, audits, and legal enforcement can create variable costs beyond royalty and advertising.

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LeafSpring Schools shows high reported unit revenue in the FDD, including a 2024 median gross sales figure near $3.9 million, but those figures should be separated from profitability. The main tradeoff is between sizable top-line revenue potential and a business model that appears management-heavy, facility-dependent, and subject to meaningful operating variability.

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