Start a Tierra Encantada Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $1.5M - $2.9M

Units as of 2024: 12 100.0% over 3 years

Tierra Encantada, founded in 2013, is a daycare and preschool program in the United States. The concept was franchised beginning in 2019. With several locations in the United States, Tierra Encantada is dedicated to providing a warm, community-loving Spanish immersion early education program.

Tierra Encantada aims to provide a wholesome environment that can be a second home for children, complete with cloth diapers and fresh organic meals. A Tierra Encantada franchise will be an opportunity for you to give back to your community by providing a safe and fun place for children to be cared for and educated.

Why You May Want To Start a Tierra Encantada Franchise

If you love the idea of providing children with an organic, interactive learning early childhood program, then opening a Tierra Encantada franchise may be for you. Through your Tierra Encantada franchise, you'll focus on bilingual, interactive learning that may allow your franchise to stand out from other daycare and early learning centers.

As you run your Tierra Encantada franchise, you may get the opportunity to ease the stress of many parents by ensuring their children are happy, safe, and educated. You and your team will be responsible for creating an environment where the children can learn, grow, and expand their language skills. You may interact with children every day and help their parents and guardians have peace of mind about their children.

What Might Make a Tierra Encantada Franchise a Good Choice?

Opening a Tierra Encantada franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.

To be part of the Tierra Encantada team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How To Open a Tierra Encantada Franchise

As you decide if opening a Tierra Encantada franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Tierra Encantada franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Tierra Encantada franchising team questions.

If awarded a franchise, franchisees receive a great deal of support from the Tierra Encantada brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, research, and construction. They also receive hands-on training and continued support after their franchise location has opened.

Company Overview

About Tierra Encantada

Industry	Children's Businesses
Related Categories	Childcare, Tutoring, Children's Education/Enrichment
Founded	2013
Leadership	Kristen Denzer, CEO
Corporate Address	2700 30th Ave. S. Minneapolis, MN 55406
Social	Facebook, LinkedIn, Instagram, YouTube, Pinterest

Business Overview

Franchising Since	2019 (5 years)
# of employees at HQ	31
Where seeking	This company is offering new franchises in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming
# of Units	12 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Tierra Encantada franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$60,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$1,534,643 - $2,900,684
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$300,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	7%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	1%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Tierra Encantada has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	20 hours
Classroom Training	84 hours
Ongoing Support	Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates Regional Advertising Social Media SEO Website Development Email Marketing

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	20-26
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes