How to Finance a Four Seasons Preschool Franchise: Fees and SBA
By Chris Cornella
A Four Seasons Preschool franchise loan helps an owner open a licensed early learning school under a brand that has operated in Watertown, Massachusetts, since 1981 and began franchising in 2023. Because the franchise program is young, lenders will rely heavily on the franchisor’s disclosure document, the owner’s own background and a realistic plan for building enrollment.
This article walks through what the franchisor publishes about its costs and fees, how a preschool project is typically structured, what the brand’s SBA Franchise Directory listing means and which financing options fit a new school, a resale or a second location.
US Professional Funding is not affiliated with, sponsored by or endorsed by Four Seasons Preschool; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice.
Four Seasons Preschool Franchise Loan at a Glance
- Founded: 1981 in Watertown, Massachusetts, by Karen Arena, according to the company.
- Franchising since: 2023, according to the company.
- Initial franchise fee: $50,000, according to the franchisor’s franchise page.
- Minimum initial investment: $275,100, including the franchise fee and training, according to the franchisor’s franchise page.
- Royalty: 6% of gross sales.
- Corporate marketing fund: 1% of gross sales.
- Programs: infant, toddler, preschool and pre-kindergarten, with private kindergarten at select locations.
- Net worth and liquidity minimums: not published on the franchisor’s public pages; ask for them during discovery.
- SBA Franchise Directory: listed as Four Seasons Preschool (code S8707), with a note about the lease rider when real estate secures the loan.
What Is Four Seasons Preschool?
Four Seasons Preschool started in September 1981, when Karen Arena opened her school in Watertown. Her daughter, Tracey Hanley, serves as director and curriculum coordinator and trains staff and franchise owners. The company says that in 2023 the two decided to franchise the school, with a stated mission of improving early childhood education for families, children and teachers.
The brand emphasizes play-based learning, a safe and nurturing setting, a strong family focus and respect for teachers. One goal of the franchise program, according to the company, is to help experienced teachers become owners of their own centers. The franchisor describes the model as built for a single owner-operator with a small team.
How lenders view a young franchise system. A school with four decades of local history gives the concept credibility, but the franchise network itself is new. Lenders cannot point to a long record of franchised schools, so they focus on you: your education or management background, your liquidity, your enrollment plan and the strength of the site. The disclosure document becomes the central reference for costs, fees and obligations.
Four Seasons Preschool Franchise Costs
The franchisor’s public franchise page lists a $50,000 initial franchise fee and a minimum initial investment of $275,100, which includes the franchise fee and training. The full Item 7 table in the current Franchise Disclosure Document (FDD) will show the complete range and how it is built. We could not access the FDD itself, so the line items below are the categories to review rather than verified dollar amounts.
Initial franchise fee
The $50,000 fee is typically paid when the franchise agreement is signed. Lenders count it as part of total project cost, and it is usually covered by the owner’s cash injection or included in the loan.
Facility and build-out
A licensed preschool needs classrooms sized for state ratio and square-footage rules, child-height restrooms and sinks, secure entry, fire and life-safety systems, kitchen or food-prep space where meals are served and, in most states, a fenced outdoor play area. Leasehold improvements are often the largest variable in a childcare project, and the cost depends heavily on whether the space was previously used for childcare.
Furniture, fixtures and equipment
Expect classroom furniture, cribs and infant equipment, cubbies, learning materials, playground equipment, office technology and security cameras. Infant rooms add cost because they require more specialized furniture and lower ratios.
Opening costs and working capital
Licensing, inspections, background checks, teacher hiring and training, pre-opening marketing, insurance, deposits and rent before opening all come before tuition revenue. Enrollment builds over time, so working capital should cover payroll and rent while classrooms fill.
Item 7 categories to review in the FDD:
- Initial franchise fee
- Training, travel and lodging
- Lease deposits and rent before opening
- Leasehold improvements and playground
- Classroom furniture, fixtures and equipment
- Signage
- Technology, security and office equipment
- Licenses, permits and professional fees
- Insurance
- Grand opening marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
According to the franchisor’s franchise page, owners pay a royalty of 6% of gross sales and contribute 1% of gross sales to the corporate marketing fund. Item 6 of the FDD will list any technology, training, transfer or renewal fees.
When sizing a Four Seasons Preschool franchise loan, lenders subtract these fees, along with teacher payroll and rent, before testing whether projected cash flow covers loan payments. Because payroll is the largest expense in a preschool, lenders often build projections around classroom-by-classroom enrollment and staffing ratios rather than a single sales figure.
Franchisor Requirements for New Owners
The franchisor says it looks for owners committed to early childhood education who can hire staff who share that commitment, with strong sales and customer service skills for face-to-face work with parents, basic bookkeeping and computer skills, time management and leadership ability. Education, childcare or administrative experience is helpful but not required.
The company describes its process as completing an online form, a kick-off meeting, a Discovery Day at corporate headquarters, then signing the agreement, onboarding and training. Net worth and liquid capital minimums are not published on its public pages, so ask for them early.
Ways to Own a Four Seasons Preschool
A new school. Most buyers will open a new location, which requires a start-up loan covering build-out, equipment and an enrollment ramp. Our educational center start-up financing page explains how these projects are structured.
Buying an existing school. As the network grows, resales may become available. A purchase brings enrolled families, trained teachers and a licensed facility, and lenders will review historical financials. Licensing usually does not transfer automatically, so read our article on buying a childcare center and licensing rules. See also educational center acquisition financing.
Multiple schools. Ask whether the franchisor offers development rights for more than one territory and what schedule applies.
Financing Options for a Four Seasons Preschool Franchise
SBA 7(a) loans
An SBA 7(a) loan can be the broadest form of Four Seasons Preschool franchise loan because it can combine the franchise fee, build-out, equipment and working capital in one loan. It fits start-ups and acquisitions where lenders want longer terms to support an enrollment ramp.
SBA 504 loans
If you buy or build a dedicated preschool building, an SBA 504 loan may finance the real estate and long-lived fixtures. Owning the building can protect against rent increases, but it adds project cost.
Conventional term loans
Owners with strong collateral and liquidity may qualify for conventional bank financing, especially for a second school.
Equipment financing
Playground structures, cribs and infant equipment, classroom furniture, security systems and technology can be financed separately, which can preserve cash for working capital.
Working capital and lines of credit
Payroll must be met every period while classrooms fill. A reserve or line of credit helps through the ramp and around slower enrollment periods. Read more about educational center working capital and planning cash flow around the school calendar.
Seller financing on resales
On a resale, a seller may agree to carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA program rules may limit how they are structured.
SBA Loans for Four Seasons Preschool Franchisees
SBA lenders check whether a franchise brand appears on the SBA Franchise Directory, which shows the agency has reviewed the franchise documents for eligibility. Four Seasons Preschool is listed under code S8707, which can simplify document review for a lender.
The listing carries a note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Lease Agreement may not be executed. In plain terms, the brand has a lease rider meant for owners who lease their site. If you own the property and pledge it as collateral, that rider should not be signed, because there is no third-party landlord lease for it to modify. Tell your lender early whether you will lease or own.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for educational businesses covers the process in more detail.
How Lenders Evaluate a Four Seasons Preschool Deal
Personal credit and financial history. Lenders review personal credit, tax returns and any past business debt.
Net worth and liquidity. Expect to show cash for an injection plus reserves beyond the minimum investment.
Industry and management experience. Teaching, center director or business management experience strengthens an application, especially with a young franchise system.
Business plan and projections. Build projections by classroom, age group, ratio and tuition, and show the enrollment ramp month by month. Address infant care separately, since it is more staff-intensive.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 17, 19 and 20. Item 19 shows whether the franchisor makes financial performance representations; Item 20 shows outlet counts. Our article on how the FDD shapes franchise financing explains what lenders look for.
Site, lease and licensing. Zoning, outdoor play space, drop-off traffic and state licensing approval all affect timing and cost.
For resales, historical financials. Lenders review enrollment trends, staff turnover, tuition collections and licensing history.
Facility and Licensing Deep Dive
Licensing is what separates preschool financing from most franchises. A lender will want to know that the site can be licensed for the capacity in your plan before funding. Allow time for inspections, and keep a cushion for changes that inspectors require.
Conversions of former childcare space can save build-out cost, but confirm that existing fixtures meet current code. New construction offers control but takes longer and requires more capital.
Multi-Unit Growth and Development Agreements
A second school is usually financed on the strength of the first. Lenders want to see the first location’s enrollment, staffing stability and cash flow before committing. Building a strong director at the first school frees the owner to open the next. Plan reserves so a new location’s ramp does not strain the first.
Real-World Scenarios
The teacher turned owner. An experienced preschool teacher with modest savings partners with a family member who contributes capital. The lender values her classroom experience and the partner’s liquidity and structures an SBA 7(a) start-up loan with a working capital reserve.
The building buyer. A buyer finds a freestanding former childcare building. An SBA 504 loan finances the real estate while a separate loan covers the franchise fee and equipment. Because the owner holds the property, the lease rider is not used.
The resale purchase. A buyer acquires an operating school from a franchisee who is retiring. The lender reviews enrollment history and licensing, and the seller carries a small subordinate note.
The second school. An owner with a stable first school opens a second in a nearby town, using the first school’s cash flow and a conventional loan.
Common Mistakes to Avoid
- Underestimating build-out and licensing costs for an older space.
- Projecting full enrollment too quickly.
- Skipping the FDD review of Items 6, 7 and 17.
- Leaving too little working capital for payroll during the ramp.
- Not telling the lender whether the property will be leased or owned.
See educational business loan mistakes for more.
Next Steps to Finance Your Four Seasons Preschool Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17, 19 and 20 with an attorney.
Step 2: Confirm the franchisor’s requirements. Ask for current net worth and liquidity minimums.
Step 3: Choose a site. Confirm zoning, outdoor play space and licensing feasibility.
Step 4: Build your plan. Model enrollment by classroom and staffing by ratio. The SBA loan calculator gives planning estimates only, not an offer or approval.
Step 5: Assemble documents. Gather tax returns, financial statements, résumés, the business plan and contractor quotes.
Step 6: Apply and coordinate. Align franchisor approval, lease or purchase, licensing and loan approval.
Four Seasons Preschool Franchise Loan FAQs
How much does a Four Seasons Preschool franchise cost?
The franchisor lists a minimum initial investment of $275,100, including the franchise fee and training. The full range is in Item 7 of the current FDD.
What is the Four Seasons Preschool franchise fee?
The franchisor lists a $50,000 initial franchise fee.
What royalty does Four Seasons Preschool charge?
A royalty of 6% of gross sales plus a 1% corporate marketing fund contribution, according to the franchisor.
How much liquid capital do I need?
The franchisor does not publish minimums on its public pages. Lenders will expect an injection plus reserves.
Is Four Seasons Preschool eligible for SBA loans?
It is listed on the SBA Franchise Directory under code S8707. Eligibility still depends on the borrower, project and lender approval.
Do I need childcare experience?
The franchisor says education, childcare or administrative experience is helpful but not required. Lenders generally give it weight.
Can I finance equipment separately?
Yes. Classroom furniture, playground equipment and technology can be financed separately or within a Four Seasons Preschool franchise loan.
Can I buy an existing Four Seasons Preschool?
If a resale is available, an acquisition loan can finance it, subject to franchisor transfer approval and licensing.
Does the franchisor offer financing?
Check Item 10 of the FDD.
How long is the franchise agreement?
The term and renewal rights are in Item 17 of the FDD.
Final Thoughts
A Four Seasons Preschool franchise loan funds a school built on a long-running local model but a young franchise system. Owners who study the FDD, plan the enrollment ramp carefully and keep healthy reserves give lenders what they need to approve the deal.
US Professional Funding helps preschool and childcare owners finance start-ups, acquisitions, real estate and working capital. Learn more about our franchise financing and educational services financing, including school real estate expansion.
