About Ducklings Early Learning Center Franchise
Ducklings Early Learning Center is a childcare and early education franchise that provides age appropriate learning programs for infants, toddlers, and preschool age children.
The brand has been franchising since 2016, offering a structured curriculum designed to nurture cognitive, social, and emotional development during a child's most formative years.
The franchise fee is $65,000.
Ducklings Early Learning Center Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues | National brand fund |
| Total Investment Range | $512,900 – $1,496,000 | Includes build-out, inventory, working capital |
The investment range of $513K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $65,000 |
| Your Training Expenses | $500 | $8,000 |
| Rent deposits | $30,000 | $60,000 |
| Real Estate Improvements, Construction and/or Remodeling | $100,000 | $850,000 |
| Computer Hardware and Software | $7,000 | $10,000 |
| Office Supplies | $1,000 | $2,500 |
| Signage | $5,000 | $8,000 |
| Furniture and Equipment | $200,000 | $335,000 |
| Utilities | $0 | $2,000 |
| Branded Material | $3,500 | $3,500 |
| Uniforms | $500 | $1,000 |
| Inventory | $6,000 | $8,000 |
| Market Introduction | $10,000 | $10,000 |
| Insurance | $1,000 | $7,000 |
| Licenses and Permits | $250 | $500 |
| Legal and Accounting | $3,000 | $5,000 |
| Dues and Subscriptions | $150 | $500 |
| Additional Funds | $80,000 | $120,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then-current initial franchise fee; provided however, (i) for transfers to an existing franchisee in good standing with Franchisor, the transfer fee is 50% of the then-current initial franchise fee, (ii) for a transfer to add an owner or entity that does not affect management control, the transfer fee is $1,500, and (iii) for a transfer to a spouse, parent or child upon death or permanent disability of Franchisee or Franchise’s Principal, as the case may be, the transfer fee is $3,500.00. |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Technology Fee | $650 per month |
| Audit Fee | Cost of examination plus related expenses (if Gross Revenue understated by 2% or more) |
| Required Minimum Expenditure for Local Marketing and Advertising | 1% of Gross Revenue |
| Advertising Cooperative | Up to one-half of your required minimum local advertising expenditure |
| Late Fee | $75 |
| Interest | 18% annum from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $50 |
| Interim Management Fee | Greater of (i) two times the salary paid to individual(s) we assign to operate your Franchise, or (ii) 10% of weekly Gross Revenue, plus all travel related and other expenses |
| Initial Training (for new owner, director or subsequently hired personnel) | $5,000 per person |
| Additional Training (convention registration) | $700 per person, subject to increase |
| Additional Training (remedial at your location) | $500 per day, plus our expenses |
| Evaluation Fee | Actual cost of inspection and testing of a proposed item or vendor |
| Indemnification | Amount of loss or damages plus costs |
| Damages, Costs and Expenses for Non-compliance | Actual damages, costs and expenses |
| Insurance Reimbursement | Amount paid by us for your insurance obligations, plus a 10% administrative fee |
| Taxes | Amount of taxes |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | The Initial Training Program is administered in 3 phases, totaling 86 hours of classroom training and 34 hours of on-the-job training. |
| Classroom Training | 86 hours |
| On-the-Job Training | 34 hours |
| Training Location | Remote, Online and/or Video Conferencing for Phases 1 and 2. West Chester, PA or other designated location for Phase 3, including at the corporate outlet in Kennett Square, Pennsylvania. |
| Additional Training | The franchisor offers mandatory or optional additional training programs, including up to three days of ongoing training annually and an annual business meeting or franchisee conference, each up to three days. Remedial in-territory training and assistance are also available upon request or as deemed appropriate by the franchisor. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Protected |
| Exclusive Territory | No |
| Territory Size | All or a portion of a listed town, city, or county, identified by a group of contiguous zip codes. |
| Description | Franchisees are granted a limited protected territory, defined by contiguous zip codes within a town, city, or county. The territory size is determined individually based on demographics, household numbers and incomes, traffic patterns, and community needs, utilizing recent census data and third-party mapping. While the franchisor will not open another Ducklings outlet or grant rights to others within the territory, it reserves the right to sell products and services through alternative distribution channels within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | To renew, the franchisee must be in full compliance with the agreement, have no more than three events of default during the current term, provide written notice at least six months before term end, execute a new franchise agreement (which may have different terms), have the right to occupy the premises or approved relocation, remodel the business, execute a general release, comply with current qualifications and training, and pay the renewal fee. |
| Transfer Fee | 75% of the then-current initial franchise fee; 50% for transfers to an existing franchisee in good standing; $1,500 for transfers to add an owner or entity not affecting management control; $3,500 for transfers to a spouse, parent, or child upon death or permanent disability. |
| Transfer Conditions | Transfers require franchisor consent, which will not be unreasonably withheld if conditions are met. These include the proposed transferee meeting current franchisee standards, having sufficient business experience and financial resources, successfully completing initial training, and executing the then-standard franchise agreement. The franchisee must have paid all amounts owed, and both parties must sign a general release. The franchisor must approve material terms, and the franchisee must indemnify the franchisor for 3 years post-transfer. Landlord consent for lease assignment is also required. |
| Termination for Cause | The franchisor may terminate the agreement for various defaults, some of which are non-curable (e.g., insolvency, falsifying reports, ceasing operations for 5+ days, losing premises possession, failure to open within 24 months, repeated understatement of Gross Revenue, unauthorized use of Marks/Confidential Information, felony conviction, creating public health/safety threat, failure to obtain accreditation, non-compliance with non-compete covenants, or multiple defaults). Other defaults are curable within 5 days (e.g., non-payment of fees) or a reasonable time for non-monetary obligations, though repeated curable defaults can become non-curable. |
| Non-Compete Period | 24 months |
| Non-Compete Details | For 24 months after termination or expiration, the franchisee and its principals may not directly or indirectly divert customers to competitors, or participate as an owner, partner, director, officer, employee, consultant, or agent in any early childhood education or childcare business within 25 miles of their former Ducklings Early Learning Center outlet location or any other Ducklings Early Learning Center location. They also cannot perform any act injurious to the goodwill of the Marks or System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee is required to personally supervise the Franchised Business. A qualified Director must be appointed, meet franchisor qualifications, and successfully complete the Initial Management Training Program and all other required training. The Director must devote full-time to the job and cannot have interests in competing businesses or other employment. If the franchisee is a business entity, the Director is not required to have an equity interest but must meet approval. |
| Required Suppliers | Franchisees must purchase all inventory, equipment, computer systems, and certain software from designated suppliers or in accordance with franchisor specifications. The franchisor is the only approved supplier for certain branded materials, including stationery, business cards, folders, brochures, posters, stickers, and staff T-shirts. |
| Supply Restrictions | The franchisor maintains written lists of approved equipment, fixtures, inventory, and services (by brand name and/or specifications) and designated suppliers, which are updated periodically. Franchisees must request written approval for any unapproved items or suppliers, providing samples and information for evaluation. The franchisor reserves the right to revoke approval if standards are not met. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2020, the franchisor did not receive any revenue, rebates, discounts, or other material consideration from franchisee-required leases or purchases. However, the franchisor may do so in the future and may retain any such benefits at its sole discretion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any note, lease, or obligation on behalf of the franchisee. |
Ducklings Early Learning Center Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Ducklings Early Learning Center Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Ducklings Early Learning Center System Growth
Ducklings Early Learning Center currently operates 2 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 0 | 0 | 4 |
| 2019 | 1 | 0 | 4 |
| 2020 | 3 | 0 | 7 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by REESE CPA LLC for year ending December 31.
Ducklings Early Learning Center Franchise — FAQ
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