How to Finance an Ivybrook Academy Franchise: Half-Day Preschool
By Anthony Cornella
An Ivybrook Academy franchise loan funds a different kind of early education business than a typical full-day daycare. Ivybrook runs a half-day preschool built around its own curriculum, so financing focuses on a school facility, classroom furnishings, staffing before enrollment fills and a plan to grow tuition revenue over the first school years. The brand is listed on the SBA Franchise Directory, so SBA-guaranteed loans are available to qualified buyers.
Below, we look at how Ivybrook’s model shapes borrowing, what to confirm in the Franchise Disclosure Document (FDD) and how lenders evaluate an Ivybrook deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Ivybrook Academy; the name is used only to describe the business. Fees and investment figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, so review the current FDD and franchise agreement with a franchise attorney and accountant.
Ivybrook Academy Franchise Loan at a Glance
- Concept: a franchised half-day preschool for children from 18 months to 6 years old.
- Founded: 2007 in Weddington, North Carolina, by Drew and Jennifer McWilliams; franchising since 2017.
- Footprint: the company reports schools and awarded locations across 22 states as of 2026.
- Educator incentive: in 2026 the company introduced a reduction of the initial franchise fee for qualifying current teachers, administrators and retired educators.
- Franchise fee, royalty and total investment: confirm in Items 5, 6 and 7 of the current FDD. We could not verify figures from the franchisor’s own materials.
- SBA Franchise Directory: listed under code S2840, with a note about the Collateral Assignment of Lease when real estate secures the loan.
What Is Ivybrook Academy?
Ivybrook Academy began in 2007 in Weddington, North Carolina, near Charlotte. Co-founder Jennifer McWilliams, a former first-grade teacher, developed the curriculum, and co-founder Drew McWilliams serves as CEO. The company began franchising in 2017 and describes itself as the nation’s leading franchised half-day preschool.
The curriculum combines Montessori principles, the Reggio Emilia philosophy and multiple intelligences theory. The company emphasizes individualized, hands-on learning, small classes and enrichment programs. Its franchise owners come from education, healthcare, finance, technology and corporate leadership, and in 2026 the company announced a new investment partner to support growth.
Why the half-day model matters to lenders. A half-day preschool sells structured early learning, not all-day care. That changes the operating profile: shorter days, a school-year rhythm and staffing built around class sessions rather than long shifts. Lenders will want projections that show how tuition, enrollment by age group and any enrichment or extended programs come together, and how the school handles the summer.
Ivybrook Academy Franchise Costs
We could not access a current Ivybrook FDD or a franchisor page that publishes its fees, so use the figures in the FDD you receive. Here is how the costs are usually organized.
Initial franchise fee. Item 5 discloses the fee, when it is due and any multi-school pricing. If you qualify for the educator reduction, get the terms in writing and make sure your sources-and-uses statement shows the reduced amount.
Real estate and build-out. Schools need classrooms, child-sized restrooms, an office and secure entry, plus outdoor space where licensing requires it. Owners may lease and improve a commercial space, lease a new building or buy property. Our guide to franchise real estate financing compares those paths.
Furniture, fixtures and equipment. Curriculum-specific learning materials, child-sized furniture, technology, security systems, signage and playground equipment where required.
Opening costs and working capital. Director and teacher hiring, training, licensing, insurance, enrollment marketing and pre-opening rent all come before tuition revenue. Item 7’s “additional funds” line should cover the period until enrollment supports expenses.
Total investment. Check that every Item 7 line item adds up to the stated total. Typical categories include:
- Initial franchise fee
- Lease deposits and pre-opening rent, or real estate
- Leasehold improvements or construction
- Furniture, learning materials and playground equipment
- Technology, security and signage
- Training, travel, licensing and professional fees
- Grand opening and enrollment marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, any marketing fund contribution, technology fees, transfer and renewal fees and other recurring charges. Fees based on revenue rise with enrollment. Fixed fees stay the same while a new school is still filling, so they weigh more heavily in the first year.
Before approving an Ivybrook Academy franchise loan, lenders subtract every Item 6 fee from projected revenue to test whether the school can cover debt payments. In a half-day model, the main question is how quickly classes fill and what the tuition mix looks like. Teacher wages are the biggest cost, and a lender will check that staffing in the projections matches licensing ratios for each age group.
Franchisor Requirements for New Owners
Ask Ivybrook for its current net worth and liquid capital requirements. Lenders will check that you can make the equity injection and still hold reserves after opening. The franchisor trains owners on school operations, enrollment, staffing, curriculum and community engagement, and supports real estate, site selection, marketing and operations before and after opening.
Plan to lead hiring and local relationships yourself, supported by a qualified director and teachers who deliver the curriculum. Expect an application, discovery meetings, an FDD review period and approval before you sign.
Ways to Own an Ivybrook Academy
Open a new school. Most owners develop a new location with franchisor support on site selection. Financing covers build-out, furnishings, the franchise fee and a working capital reserve. See our start-up financing for educational centers.
Buy an existing school. When an existing Ivybrook school is sold, the buyer takes over enrolled families, staff and a licensed site. Lenders can underwrite real tuition history, and the franchisor must approve the transfer. Our educational center acquisition financing explains how these purchases are structured.
Develop more than one school. Owners who sign for multiple locations should match development deadlines to realistic financing timelines. Each school needs its own site and funding.
Financing Options for an Ivybrook Academy Franchise
SBA 7(a) loans. An SBA 7(a) loan can cover the franchise fee, leasehold improvements, furnishings, working capital and, where relevant, real estate.
SBA 504 loans. When an owner buys the building, an SBA 504 real estate loan provides long-term fixed-asset financing, usually alongside a separate loan for furnishings and working capital.
Conventional term loans. Experienced owners with strong collateral may use conventional business financing, which generally calls for more equity than SBA loans.
Real estate and expansion. Owners who buy or expand a facility can look at educational facility expansion loans.
Equipment financing. Curriculum materials, classroom furniture, playground structures, security and check-in systems and technology can be financed separately.
Working capital and lines of credit. A school-year calendar can create uneven cash flow around summer and fall enrollment. A line of credit helps cover payroll and rent during those swings. See our working capital for educational businesses.
Seller financing on resales. A seller may carry part of the price on an existing school. Seller notes are typically subordinate to the senior lender, and SBA rules may limit how they count toward equity.
SBA Loans for Ivybrook Academy Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally need a brand to be listed before they can make an SBA-guaranteed loan to its franchisees. A listing does not approve any borrower.
Ivybrook Academy is listed under code S2840. The directory note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease document may not be executed. In plain English, the Collateral Assignment of Lease is a franchisor document that can let the franchisor step into a franchisee’s lease. When the loan is secured by real estate, as when the owner buys the building with SBA financing, the directory says that document may not be signed, so the closing package is built around the property itself rather than lease-related franchisor rights. If you plan to own the property, tell your lender and franchise attorney early so the closing documents are prepared correctly.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for educational businesses covers documentation, and the SBA loan calculator can give rough payment estimates for planning only.
How Lenders Evaluate an Ivybrook Academy Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus personal guarantees from significant owners.
Net worth and liquidity. Lenders look at what you will have left after the equity injection. Our article on how much franchise you can afford walks through that math.
Industry and management experience. Teaching or school administration experience counts in your favor and may qualify you for the educator incentive. Managers from other fields should show how they will hire a strong director.
Business plan and projections. Model enrollment by class and age group, tuition, sessions per day, summer programming, staffing at licensing ratios and every Item 6 fee.
The FDD and franchise agreement. Lenders review the term, renewal, transfer, territory and any Item 10 financing, and check whether Item 19 contains financial performance representations.
Site, lease or real estate. Licensing feasibility, outdoor space, safe drop-off and pick-up and the number of young families nearby all matter. A lease should run at least as long as the loan.
Historical financials for resales. Several years of profit and loss statements, enrollment records, tuition schedules and licensing reports.
Multi-Unit Growth and Development Agreements
The company reports dozens of awarded locations still to open, which suggests that many owners commit to development ahead of opening. Before signing for multiple schools, map each opening date to a financing plan. Most lenders want the first school to show stable enrollment before funding the second, and they underwrite the combined cash flow of the existing schools. A director or operations lead who can manage across schools makes later loans easier to approve.
Real-World Scenarios
A retired educator opening a first school. A retired elementary principal uses the educator incentive and an SBA 7(a) loan to fund leasehold improvements, furnishings and a working capital reserve in a leased suburban space.
A corporate professional buying the building. A finance executive buys a small commercial building with SBA financing. Because the real estate secures the loan, the SBA directory note on the Collateral Assignment of Lease applies, and the attorney prepares the documents accordingly.
A buyer purchasing an existing school. A healthcare manager buys an established Ivybrook school. The lender underwrites its enrollment history, and the franchisor approves the transfer before closing.
Common Mistakes to Avoid
- Projecting full-day revenue for a half-day model
- Ignoring summer and school-year cash flow swings
- Signing a development schedule faster than financing can support
- Choosing a site before confirming licensing and zoning
- Overlooking the Collateral Assignment of Lease note when buying real estate
- Assuming the educator fee reduction applies without written confirmation
See more mistakes education business owners make with loans.
Next Steps to Finance Your Ivybrook Academy Franchise
Step 1: Request the current FDD. Review the fees, investment table, financing disclosures and transfer terms.
Step 2: Confirm your incentives and requirements. Ask about financial qualifications and whether the educator reduction applies to you.
Step 3: Review with advisors. Work through the FDD and agreement with a franchise attorney and an accountant.
Step 4: Talk with a financing specialist. Decide between leasing and owning, and between SBA and conventional loans, before you choose a site.
Step 5: Secure the site. Confirm licensing feasibility and get build-out bids.
Step 6: Apply and close. Submit projections, personal financial documents and franchise documents, and coordinate closing with the opening timeline.
Ivybrook Academy Franchise Loan FAQs
How much does an Ivybrook Academy franchise cost?
The total initial investment appears in Item 7 of the current FDD. Costs depend on whether you lease or buy, the size of the build-out and how much working capital you need.
What is the Ivybrook franchise fee?
Item 5 of the FDD discloses it. In 2026, the company introduced a reduction of the initial franchise fee for qualifying current teachers, administrators and retired educators, so ask whether you qualify.
What royalty does Ivybrook charge?
Royalty and marketing fees are listed in Item 6 of the FDD. Lenders subtract them before sizing your loan.
Is Ivybrook Academy eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S2840. Every borrower must still meet lender and SBA requirements.
What does the SBA directory note mean?
When real estate where the school operates secures the SBA loan, the Collateral Assignment of Lease may not be signed. It mainly affects owners who buy their building.
Do I need a teaching background?
No. The company says its owners come from education, healthcare, finance, technology and corporate leadership. Educators may qualify for the fee reduction.
Can I buy an existing Ivybrook school?
Yes, when one is for sale and the franchisor approves the transfer. Lenders use the school’s actual enrollment and financials.
Does Ivybrook offer financing?
Any franchisor financing is disclosed in Item 10 of the FDD. Most owners use SBA, conventional or equipment financing.
Can an Ivybrook Academy franchise loan include working capital?
Yes. SBA 7(a) and many conventional loans can include working capital, and a line of credit can help with seasonal swings.
Does the FDD include financial performance data?
Check Item 19 of the current FDD. Build projections from verified sources and local market research.
Final Thoughts
Ivybrook’s half-day model, educator-friendly incentive and SBA directory listing give buyers several paths to ownership. The strongest Ivybrook Academy franchise loan requests rest on realistic enrollment projections, a licensable site, the right real estate documents and reserves for the school-year cycle.
US Professional Funding helps franchise owners finance start-ups, acquisitions, real estate, equipment and working capital. Explore our franchise financing programs and financing for educational services businesses.
