Tierra Encantada Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

2
+
0%
0%
Investment required

?

$1,542,000 - $3,658,000
Revenue (AUV)

?

$2,902,000
Undisclosed
Pro
+
14.0%
+
xx%
-xx%
14.0%
Initial franchise fee

?

$60,000
Royalty fees

?

7.00%
+
1% + $2,000 per month
Operating Profit

?

23.4%

Pro
Franchisees

?

2
+
0%
0%
Investment required

?

$1,542,000 - $3,658,000
Franchise fee

?

$60,000
Royalty fees

?

7.00%
+
1% + $2,000 per month
Revenue (AUV)

?

$2,902,000
Undisclosed
Pro
+
14.0%
+
xx%
-xx%
14.0%
Operating Profit

?

23.4%

Pro

Tierra Encantada: Shaping Young Minds Through Spanish Immersion

Tierra Encantada is a daycare and preschool franchise that specializes in Spanish immersion programs for children from six weeks to six years old. Established in 2013 in Minneapolis, Minnesota, the brand has become a recognized name in early childhood bilingual education.

With its headquarters still based in Minneapolis, Tierra Encantada has stayed true to its roots while expanding its reach through franchising since 2019. The franchise’s model blends immersive language learning with organic, freshly prepared meals and the use of cloth diapers, creating a well-rounded and eco-friendly childcare experience.

Tierra Encantada has earned its reputation thanks to its focus on exceptional early education, a playful and engaging curriculum, and an environment that supports both the intellectual and social growth of young children. Its holistic approach appeals to families who value both bilingual learning and sustainable practices.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $48,000 – $60,000
Professional Services $66,372 – $115,080
Lease, Real Estate, and Improvements $675,222 – $1,856,899
Security, Fire, Video Surveillance, and Keycard Access System $67,280 – $117,366
Outdoor Fence and Playground Area $149,085 – $205,916
Signage $34,107 – $52,458
Facility Furniture, Equipment, and Supplies $219,157 – $270,246
Computer Equipment and Software $4,123 – $5,047
Business Licenses and Certifications $500 – $1,419
Insurance $1,597 – $16,514
Initial & Grand Opening Training $5,000 – $11,170
Opening Advertising/Marketing $35,000 – $50,000
Pre-Opening Payroll Expenses $7,467 – $24,230
Additional Funds/Working Capital (Pre-Opening – First Three Months of Operation) $142,533 – $275,770
TOTAL ESTIMATED INITIAL INVESTMENT $1,455,443 – $3,062,115

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

2

+
0%
0%
No growth
New

$60,000

$1,542,000

-

$3,658,000

n.a.

$2,902,000

Pro

n.a.

Pro

23.4%

Pro

Education

Training

Tierra Encantada provides a detailed and structured training program for its franchisees to ensure smooth operations and brand consistency. Here’s a summary of the training programs:

  1. Initial Training
    Franchisees, the Operating Principal, and the Center Director must complete a roughly 10-day initial training program before opening, covering center operations and the Tierra Encantada system.
  2. Grand Opening Training
    At the time of opening, Tierra Encantada may provide on-site training, including employee training and pre-opening assistance, typically lasting up to 10 business days.
  3. Refresher Training and Conventions
    The franchisor may require periodic refresher courses or attendance at conventions and conferences for the Operating Principal, Center Director, or staff.
  4. Training for Additional or Replacement Personnel
    If a new Operating Principal or Center Director is hired, they must complete the initial training as soon as possible to meet franchisor standards.
  5. Additional or Supplemental Training
    If Tierra Encantada determines extra training is needed, franchisees must participate and cover the associated costs, including the franchisor’s per diem and expenses.

Territory Protection

Tierra Encantada offers franchisees a protected territory as specified in the Franchise Agreement, typically defined by factors like demographics, traffic, and nearby businesses. As long as the franchisee remains in compliance, the franchisor agrees not to open or allow others to open another Tierra Encantada Center within that territory.

Generally, each territory includes a population of at least 50,000 people, but the territory is not exclusive, meaning franchisees may still face competition from other channels or brands. The franchisor reserves the right to operate or license businesses outside the assigned territory and to sell products through alternative channels like the internet or mail order.

Franchisees may only provide off-premises services within their territory with the franchisor’s written consent and are prohibited from doing so outside the territory without permission. Under the Area Development Agreement, the franchisor similarly commits not to establish competing locations in the development area if the developer meets their obligations, but still retains broad rights to operate or license other businesses.

Number of units

2025
Franchised units

2

2

2

Company-owned units

9

9

11

Total units

11

11

13

Competitors

Safari Kid

Investment required
$377,000
-
$1,273,000
Franchisees
18
+
-10%
-10%

Montessori Kids Universe

Investment required
$562,000
-
$1,139,000
Franchisees
19
+
58%
58%

The Learning Experience

Investment required
$686,000
-
$5,609,000
Franchisees
326
+
21%
21%

The Goddard School

Investment required
$704,000
-
$8,514,000
Franchisees
627
+
9%
9%

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