Tierra Encantada
Education & Child Enrichment · Early Childhood Education
- Active units
- 4
- Royalty
- 7.0%
Franchised, year-end 2025
of weekly Net Sales
About Tierra Encantada
Tierra Encantada is a warm and community-oriented Spanish Immersion Daycare and Preschool brand located in Minneapolis, MN. As leaders in Spanish immersion early education, Tierra Encantada offers a unique program that focuses on cultivating young minds and laying loving foundations. With a play-based curriculum and nutritious scratch-made meals prepared from organic ingredients, Tierra Encantada creates a welcoming and inclusive environment where all families feel at home. Their program is built on strong core values and high standards, designed to care for the whole child. Spanish immersion is at the heart of their program, enriched with social and emotional development and a play-based S-T-E-A-M curriculum. Parents rave about their well-designed classrooms, and the friendly and hands-on teachers. Give your child the opportunity to grow up bilingual at Tierra Encantada, where they prioritize your child's care and early learning experience.
Key terms
- Franchise fee
$60k
- Discretionary reductions
We may agree to reduce the initial fees in situations where a prospective franchisee has System experience or to induce development.
- Brand fund
1.0% of Net Sales
- Footprint
8,500 – 12,000 sq ft
- Area Development Fee - first franchise under ADA
$60k
- Area Development Fee - second franchise under ADA
$40k
- Area Development Fee - each additional franchise under ADA
$25k
- Veteran discount
20.0% off franchise fee — 20% off the applicable initial fee for current U.S. Military members and honorably discharged veterans
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations4
Franchised units open at year-end
- New openings2
Gross new units opened during the calendar year
- 1-year unit growth rate100.0%
Net unit growth versus prior year
- 3-year unit CAGR41.4%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio2.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin17.8%
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$3.0M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open15 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate7.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns14.1%
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 18 of 21 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.