Published on 3 Aug 2023 Time 5 min read Last update by 10 May 2024

Top 5 Daycare Franchise Opportunities and Trends

Daycare Franchise Opportunities

The child daycare franchise industry provides care for infants and young children of working families, as well as preschool instruction in preparation for kindergarten. This industry is divided into two sectors, center-based daycares, and home daycares, with center-based daycares generating most of the revenue. This is because home daycares typically only have one primary caregiver and therefore have a much smaller enrollment. Kindergartens and in-home nanny services are excluded from this industry. This industry has very high market fragmentation. In this article, we will explore the top 5 daycare franchise opportunities, while also discussing the latest trends within the child daycare franchise industry.

Contents

Education Industry Trends

Companies in the education industry will continue to invest in digitizing their curriculum and teaching methods, as the business world comes to increasingly rely on virtual platforms to conduct their operations. The COVID-19 pandemic has only amplified the need for education to be made accessible online, and many institutions that were traditionally brick-and-mortar have been forced to transition to a virtual platform. Even before the pandemic, the advent of technology has been viewed as an opportunity to better facilitate student learning, and many businesses in the education industry have relied on digital tools to enrich their curriculum. A separate driving force for this trend of digitization in the education industry as a whole is the shift of the US from a manufacturing-based economy to a service-based economy, with more and more jobs requiring higher education.

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As a result, many working adults are looking to advance their education, but in a way that is flexible with their busy schedules. Institutions of the education industry that can provide this flexibility through a virtual platform have become increasingly valuable.

Child Daycare Franchise Industry Trends

From 2015-2020, the daycare industry grew by 2.4%, making it a $55 billion market. However, many operators in the daycare industry were forced to shut down due to the COVID-19 pandemic, and revenue was projected to decline by 8.1% in 2020 alone. Furthermore, additional expenses because of the pandemic cut into profits — some closed daycare centers provided at-home learning technology at no additional cost, and those that remained open were forced to spend money on cleaning facilities and protective equipment for employees. Nevertheless, the daycare industry is expected to slowly return to its previous demand as unemployment starts to recover and the population of children under the age of nine is anticipated to increase at an accelerated rate.

Meanwhile, despite declines in government subsidies for social services, increases in disposable income and corporate profit will likely further demand for daycare, thus contributing to growth in the industry.

5 Best Daycare Franchise Opportunities

The Goddard School

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Total U.S. Locations
598
Net Unit Growth (3 years)
79
Initial Investment
$460K-$7.58M
Royalty Fees
7%
Estimated Profits
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Estimated Resale Value
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The Goddard School is an early education childhood program that could be a great investing opportunity for individuals that are interested in running their own daycare franchise. The program runs a comprehensive curriculum for children from six weeks to six years old. When you become a franchisee of The Goddard School, you will oversee a school that provides top-quality preschool learning programs and childcare services for children aged 6 weeks to 10 years, all operating under The Goddard School brand.

Primrose Schools

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Total U.S. Locations
483
Net Unit Growth (3 years)
65
Initial Investment
$736K-$8.45M
Royalty Fees
7%
Estimated Profits
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Estimated Resale Value
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Primrose Schools is a daycare franchise that focuses on early childhood education. They ensure that their students have a balanced life that includes good education, social and emotional learning, and physical activity. Primrose School Franchising SPE, LLC provides franchise opportunities for potential franchises that are interested in operating facilities using the Primrose Schools brand. These franchises offer different learning activities, including childcare services and catering to children aged six weeks to twelve years old.

Kiddie Academy

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Total U.S. Locations
306
Net Unit Growth (3 years)
59
Initial Investment
$3.36M-$6.77M
Royalty Fees
7%
Estimated Profits
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Estimated Resale Value
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Kiddie Academy is a daycare franchise that will allow the franchisee to operate an early childhood learning and childcare facility offering programs for children between six weeks and 12 years of age under the name Kiddie Academy. As a franchisee, you will receive comprehensive training in addition to marketing support. Also, the franchisor will keep supporting you to help your business succeed.

Lightbridge Academy

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Total U.S. Locations
67
Net Unit Growth (3 years)
20
Initial Investment
$621K-$5.2M
Royalty Fees
7%
Estimated Profits
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Estimated Resale Value
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Lightbridge Academy has highly trained staff members that provide children with a great learning environment so they can reach their full potential. They have a well-rounded curriculum that ensures that children develop academically, socially, and emotionally. Lightbridge Academy will only grant franchises to potential franchisees that are passionate about making a difference in the lives of children and families.

KidsPark

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Total U.S. Locations
22
Net Unit Growth (3 years)
4
Initial Investment
$261K-$450K
Royalty Fees
5%
Estimated Profits
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Estimated Resale Value
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KidsPark franchisees manage childcare centers that offer flexible hourly drop-in services, along with preschool programs and private parties specially designed for children between the ages of 2 and 12 years.

Conclusion

In conclusion, daycare franchises offer a significant opportunity to make a positive impact on children’s lives while running successful businesses. From comprehensive education programs to nurturing environments. In this article, we explored the top 5 daycare franchise opportunities that we believe present attractive options for aspiring entrepreneurs. With the industry’s projected rebound and increasing demand for daycare services, these franchises hold great potential for growth and success, contributing to a brighter future in the childcare sector.

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