From the filings

+100% units YoYHQ-led decisions

Tierra Encantada

Youth services

Software purchasing at Tierra Encantada is controlled at the headquarters level, with a mandated digital stack that includes FranConnect, Lineleader, and QuickBooks Online Essentials. The franchise operates 16 total units, 4 of which are franchised, presenting a small but high-value addressable market for vendors. With an average unit volume of $3,045,432 and 100% year-over-year unit growth, the system is in an early, tech-consolidating phase.

For software vendors selling into US franchise brands.

Live signals

Total units
16
4 franchised
Unit growth YoY
+100%
vs prior filing
AUV
$3.05M
Item 19, 2025
Royalty
7%
of gross sales
Ad fund
1%
national + local
Initial fee
$60K
per unit
Investment range
$1.55M–$4.50M
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

8%of gross sales (FY2026)

Ongoing fees: 8% of gross sales (FY2026)Royalty 7%, Ad fund 1%. Total 8% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 7%Ad fund 1%

Mandated & recommended tech

The systems vendors compete with

1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

QuickBooksIntuit
Mandatory
AccountingItem 8

nrollment, waitlist administration, family communications, scheduling, and operational reporting. You must also use our designated curriculum provider and obtain Microsoft Office, QuickBooks Online Es

FacebookMeta
MarketingItem 11

e, accounts, or other online presence that uses the Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn,

FranConnectFranConnect
CrmItem 11

ion • Software: QuickBooks Online Essentials or higher, Internet Browser, and software or programs covered by the Technology Fee (Lineleader, Digital Stack , Google Workspace, and Franconnect) • At le

InstagramMeta
MarketingItem 11

resence that uses the Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn, Snapchat, Instagram, TikTok an

LineLeaderLineLeader
Industry softwareItem 11

System: Microsoft Windows 10, or more recent version • Software: QuickBooks Online Essentials or higher, Internet Browser, and software or programs covered by the Technology Fee (Lineleader, Digital S

LinkedInLinkedIn
MarketingItem 11

s, or other online presence that uses the Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn, Snapchat,

SnapchatSnapchat
MarketingItem 11

r online presence that uses the Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn, Snapchat, Instagram,

TikTokTikTok
MarketingItem 11

t uses the Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn, Snapchat, Instagram, TikTok and Twitter,

TwitterX
MarketingItem 11

Marks, use the Marks in any fashion on any website, including social and/or networking websites, including, but not limited to, Facebook, LinkedIn, Snapchat, Instagram, TikTok and Twitter, or offer, p

Franchisor behaviours

What the franchisor requires

25 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 6 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

You must provide us with unimpeded and independent access to your Computer System in the form and manner that we may request.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Item 6

Monthly Income Statements, Balance Sheets, and enrollment reports (“Financial Reports”), which must conform to our then-current accounting standards, formats, policies and tuition payment calendar(s), are due to us no later than the 15th of each month or such other day as we establish, for the preceding month.

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Franchise agreement

Franchisor shall sell, or shall cause its designees to sell, to Franchisee the Proprietary Products.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 11

We reserve the right to change our specifications in the future to take advantage of technological advances or to adapt the system to meet operational needs and changes.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

0

Item 8

During our last fiscal year ending December 31, 2025, neither we nor our affiliates derived any revenue as a result of the sale or lease of equipment, uniforms, supplies, or services or any other Tierra Encantada Products and Services to franchisees.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We and/or our affiliates may receive revenue or other material benefits from suppliers on account of the suppliers’ dealings with us, you, or other franchisees.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

You must pay us the greater of $500 or the reasonable costs incurred in evaluating each product and/or service, including personnel and travel costs, whether or not the product and/or service, as applicable, is approved.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you would like to use any products that we have not approved, or products from other than approved suppliers you must submit a written request for approval and provide us with any information that we request.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

LLC FRANCHISE AGREEMENT EXHIBIT G TELEPHONE NUMBER ASSIGNMENT AGREEMENT AND POWER OF ATTORNEY FOR VALUE RECEIVED, the undersigned (“Franchisee”) irrevocably assigns the telephone listing and numbers stated below and any successor, changed or replacement number or numbers effective upon the date of termination of the…

Franchise management

Must the franchisee participate in a customer-satisfaction or net-promoter survey program?

Yes

Franchise agreement

Franchisee shall participate in all customer surveys and satisfaction audits, which may require that Franchisee provide discounted or complimentary products or services, provided that such discounted or complimentary sales shall not be included in the Gross Sales of the Franchised Center.

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Item 6

We may ourselves, or through an independent service, conduct inspections or a “mystery customer” quality control and evaluation program.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Item 14

We may revise the contents of the Operations Manual, and you must comply with each new or changed standard.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 11

You may not develop or open a Tierra Encantada Center at a site that we have not approved.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

Franchisee shall not establish a separate website, account, or online presence containing the Proprietary Marks or relating in any way to the Franchised Center, without Franchisor’s prior written approval (which Franchisor shall not be obligated to provide).

Is a minimum grand opening advertising spend required?

Yes

Item 7

These expenses include your pre-opening minimum local advertising obligation of $40,000 and will be used for advertising, digital marketing services, and other promotional activities we have approved.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

You must also spend at least $4,000 monthly during your first six months of operations (or until you are full, if sooner) on local advertising (e.g., marketing, promotions, publicity, paid digital ads, social network) we have approved, and then $2,000 monthly thereafter until such time as your Center is full, and…

Operations

Must the franchisee buy products from a designated distributor?

Yes

Franchise agreement

Franchisee shall purchase all equipment, fixtures, furnishings, signs, décor, supplies, services, and products required for the establishment and operation of the Franchised Center from Suppliers designated or approved in writing by Franchisor

Must equipment be purchased from designated or approved suppliers?

Yes

Franchise agreement

Franchisee shall purchase all equipment, fixtures, furnishings, signs, décor, supplies, services, and products required for the establishment and operation of the Franchised Center from Suppliers designated or approved in writing by Franchisor

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Franchise agreement

Payment will be made by an electronic funds transfer program (the “EFT Program”) under which Franchisor will automatically withdraw from Franchisee’s bank account all payments Franchisee owes to Franchisor under this Agreement or any other agreement between Franchisor (or its affiliates) and Franchisee.

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 15

Additionally, you must designate either yourself, your Operating Principal (if you are an entity) or a Center Director (subject to our reasonable approval) to assume the full-time responsibility for daily supervision and operation of the Franchised Center.

Must employees wear uniforms specified by the franchisor?

Yes

Item 8

You must also have uniforms displaying the Marks and that meet our specifications, which may only be available from a single supplier.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You will need to acquire (either by purchase or lease) the computer hardware and software system (a “Computer System”) that we may specify from time to time.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

You must provide us with unimpeded and independent access to your Computer System in the form and manner that we may request.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 6

We may require that you and/or your staff complete refresher and additional training programs, and we may offer the programs on a voluntary basis.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

The person holding a controlling interest in Franchisee and its Operating Principal (if different) are required to register for and attend the convention annually in accordance with Franchisor’s policies.

The filing answers no to 3 questions
  • Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
  • Is there a franchisee advisory council, association or committee?Item 20
  • Must the franchisee participate in a regional advertising cooperative when one exists?Item 11

The vendor opportunity at Tierra Encantada

Tierra Encantada is a youth services franchise headquartered in Minnesota with 16 total units, 4 of which are franchised. The system reported an average unit volume of $3,045,432 in its 2026 FDD, and unit count grew 100% year-over-year. For software vendors, this is a small but concentrated target: 12 company-owned locations and a franchisor that mandates core technology across the system. The operator footprint is thin, with 17 mapped operators, only 2 of whom are multi-unit. Most operators run a single location, meaning HQ is the sole gatekeeper for technology decisions.

The addressable market is limited to these 16 units, but the high AUV and centralized purchasing model mean a single deal can cover the entire system. The top states are Minnesota (6 units), Virginia (4), Texas (2), South Carolina (1), and Alabama (1).

Who controls software purchasing

Software purchasing authority sits squarely at headquarters. The FDD lists five C-suite executives: Kristen Denzer (Chief Executive Officer/Founder), Lauren Halgerson (Chief Operations Officer), Robert Thesing (Chief Development Officer), Kristie Skluzacek (Chief Financial Officer), and Marta Sweezo (Chief Marketing Officer). For a software vendor, the likely buying center includes the CEO, COO, and CFO. The franchisor mandates several systems, which signals that any new tool must be sold to this group, not to individual franchisees.

There is no parent company on file; Tierra Encantada appears independently owned. This simplifies the sales path—no enterprise parent to navigate, just a tight executive team.

Mandated and current tech stack

The 2026 FDD mandates a 'Digital Stack' and names three specific vendors. FranConnect by FranConnect is mandated, likely for franchise management and operations. Lineleader is also mandated, and QuickBooks Online Essentials by Intuit Inc. is the required accounting system. These mandates cover core operational and financial workflows. Any vendor pitching adjacent software—such as payroll, scheduling, or enrollment management—must integrate with or displace these incumbents.

No other tech systems are disclosed in the FDD. The absence of a named POS or CRM suggests either those functions are handled within the mandated stack or remain open for vendor pitches.

Procurement, renewals, and timing

Item 8 of the FDD does not provide a procurement signal, so the exact supplier approval process is not publicly disclosed. Given the mandated tech stack, vendors should expect a top-down procurement model where HQ selects and requires systems for all locations.

Renewal terms offer a potential window for software evaluation. The initial franchise term is 10 years. Upon renewal, franchisees must sign a new Franchise Agreement that the FDD explicitly states may contain materially different terms, including different fee requirements and territorial rights. This forced renegotiation every decade could prompt a review of the tech stack. With 100% unit growth recently, new unit openings are the more immediate trigger for technology adoption.

How to read the Tierra Encantada FDD

The embedded PDF viewer below contains the full 2026 Franchise Disclosure Document. For software vendors, the critical sections are Item 11 (the mandated systems listed above) and Item 1 (the executive team). Item 17 outlines the renewal conditions and the 10-year term. Item 8, which would normally describe procurement restrictions, is silent in this filing. Use this FDD to verify the current tech stack before your first call with HQ.

For a ranked target list of franchise systems matched to your software category, talk to FranCloud.

Questions vendors ask

Tierra Encantada, answered from the filing

The C-suite controls purchasing. Key executives include CEO/Founder Kristen Denzer, COO Lauren Halgerson, and CFO Kristie Skluzacek. The franchisor mandates core systems, so any software pitch must clear HQ first.
The FDD mandates a 'Digital Stack' and names FranConnect (by FranConnect) and Lineleader as required systems. QuickBooks Online Essentials by Intuit Inc. is mandated for accounting.
There are 16 total units: 12 company-owned and 4 franchised. The footprint spans 5 states, led by Minnesota (6) and Virginia (4).
The most recent FDD does not disclose a specific Item 8 procurement model. Vendors should assume HQ exercises tight control over the tech stack given the high number of mandated systems.
The initial franchise term is 10 years. Renewals require signing a materially different new agreement. With 100% unit growth, new location openings are the most likely trigger for tech evaluation.
The 2026 FDD was filed with state franchise regulators. You can review the embedded PDF viewer below for the full legal document and tech disclosures.
Source

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Tierra Encantada2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

16 operators run 17 mapped locations. 1 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit15
2–9 units1

Top states by locations

VA4
MN4
TX2
SC1
AL1

Ownership

The portfolio behind Tierra Encantada

unknown of vibrant youth brands.

Related Youth services brands

Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.