Financing a Primrose Schools with an SBA loan
Since FY2020, 46 Primrose Schools locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.
Primrose Schools franchising: primroseschools.com
What a Primrose Schools deal looks like
Primrose Schools is an established brand in the SBA loan file: 46 acquisitions cleared underwriting in the last five years. The median loan was $1,394,000 at 7.50 percent. Amortized over 25 years, that is about $10,302 a month, or $123,618 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $154,889 of buyer cash, some of which a seller note on standby can sometimes cover.
Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.
7(a) or 504 for a Primrose Schools?
Primrose Schools deals often include the real estate, which is why the median loan here is large and runs long. When the building is part of the purchase, the SBA 504 program is usually the better fit: a 50/40/10 stack, a bank first lien, a fixed-rate CDC debenture, and 10 percent down, with the real estate amortized up to 25 years. Model that structure in the 504 calculator.
When you are buying an existing Primrose Schools as a going concern without the real estate, a 7(a) loan is the usual route, typically over 10 years. Price it in the 7(a) calculator.
What it costs to open a Primrose Schools
These are Primrose Schools's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.
- Total initial investment
- $742,900 to $8,595,000
- Initial franchise fee
- $80,000
- Ongoing royalty
- 7% of gross sales
- Net worth required
- $750,000
- Liquid capital required
- $350,000
Early childhood education, figures from the 2024 FDD. Sources: Franchise Chatter — Primrose Schools 2024 FDD review (Item 5, 7, royalty), FranchiseDirect — Primrose Schools costs & fees (investment range, fee), FDD Exchange — Primrose Schools 2024 FDD summary, FranchiseGator — Primrose Schools net worth / liquid capital. Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.
Lenders that actually write these
The banks below approved the most Primrose Schools acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.
- Live Oak Banking Company17 Primrose Schools loans
- America First Federal Credit Union10 Primrose Schools loans
- BMO Bank National Association2 Primrose Schools loans
- Customers Bank2 Primrose Schools loans
- Pinnacle Bank2 Primrose Schools loans
SBA conditions on this brand
1. Only the negotiated addendum may be used. 2. Franchisor’s Collateral Assignment of Lease and Subordination Agreement may be used.
Every franchise the SBA will finance carries an entry in its directory, and some carry conditions like this one about how the real estate and the lease may be held. A lender has to clear these before funding, so they are worth reading before you make an offer.
Frequently asked questions
How much does it cost to buy a Primrose Schools franchise?
Opening a Primrose Schools takes a total initial investment of about $742,900 to $8,595,000, including a $80,000 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Primrose Schools was $1,394,000 in the federal loan file.
Can you buy a Primrose Schools with an SBA loan?
Yes. 46 Primrose Schools locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. The directory attaches a lender condition to this brand, so a lender clears that before funding.
How much do you need for a down payment on a Primrose Schools?
SBA requires a minimum 10 percent equity injection. On the median Primrose Schools loan of $1,394,000, that is roughly $154,889 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 25 years, around $10,302 a month at the median rate.
Which lenders finance Primrose Schools acquisitions?
Live Oak Banking Company, America First Federal Credit Union and BMO Bank National Association wrote the most Primrose Schools acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.
Other childcare brands buyers finance
Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Primrose Schools's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Primrose Schools or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.