SCHOOL FOR PROFIT
Primrose hits $100 million a year. For this educational leader, it’s child’s play.
The Primrose School Franchising Company, the leader in educational child care, has reached $100 million in revenues. This milestone occurred after the company earned $10 million last January, the first month that it achieved double digits, says the franchise.
“It has been an extraordinary past year,” observed Primrose president and CEO Jo Kirchner. “In 2002, we celebrated our 20th anniversary and the opening of our 100th school. In the first month of 2003 alone, we reached the important $10 million and $100 million markers.”
Primrose has experienced exceptional growth in each of the past few years, more than doubling revenues from $44 million in 1998. In 2002, despite the economy, Primrose increased revenues by 17.8%—approximately triple the average growth rate for the child care industry. Some individual Primrose franchises are up as much as 23% in revenue over the previous year.
Primrose opened 14 new schools in the past 12 months, including locations in two new states (Kansas and Virginia), for a current total of 107 schools. Primrose has more than 27,000 children currently enrolled in 10 states: Georgia, Texas, North Carolina, Florida, Alabama, Colorado, Tennessee, Ohio, Kansas and Virginia. The company plans to open 14 more schools this year.
A Child Care Revolution
Founded in Atlanta in 1982 by Paul and Marcy Erwin, Primrose revolutionized the concept of child care, making education a key part of the curriculum in an era when “all-play and nothing-but-play” was the accepted norm.
When it came time to open their fourth school, in 1988, the Erwins began to think about franchising. Only a handful of child care companies were franchised in the late 1980s, a period when the child care industry was dominated by independent businesses.
The high standards required by the Primrose brand were also a rarity in the franchise field, where there were few premium-quality/premium-priced companies. Franchising was primarily a low-end category, where volume was the key.
The Erwins hired Jo Kirchner to consult with them in developing their franchise model and strategic marketing efforts. Ms. Kirchner was profoundly impressed with the schools’ commitment to excellence—something she had personally struggled to find as a professional working mother of two children. The Erwins retired in 1999, selling the company to Security Capital Corp., a Greenwich, CT-based private equity investment firm. Ms. Kirchner then assumed the role of president and CEO.
Balancing Lives
At Primrose, the secrets to success include a concentration on both personal and professional needs.
Key is the company’s focus on families’ growing need for balance. “Our proven Balanced Learningsm curriculum offers parents peace of mind, which leads to a happy balance between career and family life,” observed Jo Kirchner.
Available exclusively at Primrose, Balanced Learning assures that children are nurtured socially, emotionally, physically and intellectually, creating well-rounded individuals ready for success in school and life.
This is done by carefully blending child-initiated and teacher-directed activities, the two leading philosophies in early childhood education. Primrose adds to this an integrated focus on character development, which includes hands-on involvement of children as young as three, in, for example, doing chores to earn money to buy food for the less fortunate. Character-building programs such as Adopt-A-Grandparent, Canathon and Spring Fling are an ongoing part of the school curriculum.
The Primrose emphasis on balance has attracted not only families, but also franchisees—successful businesswomen and businessmen who choose to leave high-paying positions in the corporate world to balance their family life with their careers. Almost half of Primrose franchisees started with their own children in the schools and 61% have opened more than one Primrose school.
“Financial security is important to everyone, but most people are also looking for the ability to make a difference, and of course we really are making a difference to thousands of children every day,” noted Ms. Kirchner. “At Primrose, franchisees make a living while touching lives.”
“Child care is probably the hardest decision a parent ever has to make,” observed Jo Kirchner. “Primrose makes it easy.”
Take a look at the Primrose School website to see what franchisees have to say about the advantages they find in owning a Primrose franchise. Some of the comments include:
- “I was looking to be my own boss and earn enough to live the life we want for our children.”
- Mark Schuh
Franchisee, entrepreneur, Primrose School in Texas and former Smoothie King franchisee
“I was looking for a successful business where I could make a difference and also be with my daughter.”
- Deb Tynan
Franchisee, two Primrose Schools in Colorado
“You get to a point in your life when you want to do something important in your community. Being a Primrose franchisee allows you to do that, and that’s a great family-friendly career,”
- Kathy Miller
Primrose franchisee, three schools in North Carolina
“As a high school principal and the father of three children, I’ve seen nothing that rivals the strong educational foundation Primrose provides. I’m very proud of the contribution we’re making to the families in our communities,”
- Shawn Batterberry, PhD.
Primrose franchisee, Colorado
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