The most profitable childcare franchises of 2024
Once you’ve decided to invest in a childcare franchise, how do you choose the right one? With so many options available, and more coming to market every year, determining which will meet your investment needs while providing the best experience for families and children can be a challenge.
Strong childcare franchises rely on excellent care, continuous enrichment, flexible programs for various ages and needs, and strong finances to ensure a successful business venture.
Our most profitable childcare franchises of 2023 exemplify this commitment to whole child support and strong business structures. Each offers unique services and advantages, while also offering a chance for franchisees to make a difference in their community while building a thriving business.
In this post, we cover:
- What makes an exemplary childcare franchise
- Why investors should consider the childcare sector
- The most profitable childcare franchises of 2023
Let’s get started!
What makes an exemplary childcare franchise?
Modern childcare facilities go far beyond the child-minders of decades past. Contemporary childcare centers double as student enrichment programs. These facilities give parents and guardians the peace of mind of a safe, high-quality environment paired with enrichment and nurturing to foster whole-student learning from the earliest stages of development.
When researching franchises, look for options that meet all the following criteria:
Child-to-teacher ratio
An educational format supporting low child-to-teacher ratios creates a more focused environment and provides ample opportunity for each student to learn. This enables teachers to provide individualized instruction, foster a better understanding of the material, and create more personalized experiences for students. Smaller class sizes also allow more space for collaboration and group activities that can help children develop social skills. Look for a franchise with a reasonable ratio based on age, activities, and curriculum.
Curriculum and technology
Many childcare franchises also offer enrichment options for the children in their care. Technology equips staff with the tools and materials needed to create rich student learning experiences during the day. The franchise should offer its owners high-quality enrichment materials with age-appropriate content and technology to support student growth. This enables personalized instruction tailored to individuals, which leads to higher client satisfaction and better growth opportunities.
Recruitment/enrichment support
Building a childcare business requires time and effort in recruitment and hiring. Marketing must meet a two-pronged need for enrollment and staff hiring. Look for a program that provides resources and training to build a thriving childcare center with caring, professional staff. Also, find a franchise that supports its owners through extensive marketing and recruitment for enrollment.
Network availability
Highly rated childcare centers are in high demand despite their seemingly plentiful options. Look for a network that offers owners room to grow their business. This means offering wide geographic areas between locations and availability to scale to multiple locations within the network. Even in areas where other childcare centers exist, partnering with a strong franchise can give owners a competitive edge and ensure a strong potential enrollment market.
Why invest in childcare centers?
Childcare centers offer a unique opportunity for business owners to provide valuable services to their communities while enjoying healthy earning potential. According to a May 2023 report from Research and Markets, the global child daycare services market grew from $289.09 billion in 2022 to $290.87 billion in 2023 at a compound annual growth rate (CAGR) of 0.6%. By 2027, the child daycare services market is expected to reach $384.44 billion at a CAGR of 7.2%.
With the rising cost of childcare, families are looking for quality, reliable early childhood development and resources that they can trust. Investing in a franchise provides the extra resources necessary to ensure that children have access to a safe and nurturing environment that can help them reach their full potential.
By investing in an established network with strong marketing and recruitment capabilities, it is easier for owners to expand their businesses and support more families. This is especially beneficial in areas with fewer childcare options available. Finally, owning a childcare center provides franchise owners with an excellent investment opportunity as demand grows for quality early learning programs.
The right franchise and location can provide plentiful growth opportunities in an industry that makes a positive impact on individual children and the community in which they live.
The best childcare franchises of 2023
We’ve compiled a list of the best franchises serving the early childcare industry. Each of these brands brings together strong marketing, financials, curriculum, and franchisee support to create growth opportunities for owners and their enrolled students.
Ducklings Early Learning Center
Pennsylvania-based Ducklings Early Learning Center was founded in the early nineties, and offers programs for children from as young as six weeks to kindergarten age. Their centers are recognized and accredited by the National Association for the Education of Young Children (NAEYC) and Pennsylvania’s Keystone STARS. New franchisees do not need a background in education or teaching, as the Ducklings support team offers thorough training in their proprietary Here We Grow® curriculum for all new owners and staff, as well as ongoing support. The company currently offers renewable ten-year franchise agreements that include exclusive territories and is expanding in the mid-Atlantic region.
Fast facts:
- Locations: 7
- Founded:1994
- Franchised: 2016
- EBITDA: $1,445,169
- Startup cost: $700K – $1.8M
- Franchise fee: $75,000
Adventure Kids Playcare
Catering primarily to busy parents who need safe, reliable childcare outside of “normal” business hours, Adventure Kids Playcare locations provide hourly childcare and entertainment environments for children aged six weeks to 12 years. Their services include drop-in childcare at an approved place and off-site childcare at private gatherings. 100% of franchise owners are also the business’ operators, as the franchise does not permit absentee ownership, but the unusual hours provide a unique element of flexibility.
Fast facts:
- Locations: 16
- Founded: 2004
- Franchised: 2006
- EBITDA: $537,971
- Startup cost: $491K – $632K
- Franchise fee: $29,500
KidsPark
With no reservations required and operating hours that span days, evenings, and weekends, KidsPark is another childcare franchise that focuses on busy families. Besides hourly care, locations offer private parties, preschool, last-minute backup care, holiday events, and programs for school age kids. Since 1994, the franchise has grown to 21 locations across four states, and offers new franchisees assistance with all aspects of the businesses, including financing, training, marketing, any state licensing requirements.
Fast facts:
- Locations: 21
- Founded: 1994
- Franchised: 2003
- EBITDA: $478,196
- Startup cost: $294K – $517K
- Franchise fee: $30,000
Lightbridge Academy
Lightbridge Academy is a leading childcare franchise providing safe and nurturing early learning environments for children from six weeks to 12 years old. Founded in 1997, Lightbridge has grown rapidly to more than 70 locations across the United States. Each of these provides safe, high-quality care that fosters each child’s cognitive, physical, social, and emotional development. Lightbridge Academy provides an educational program called the Circle of Care, which brings together staff, parents, community, and franchise owners to support child growth. The centers offer age-appropriate activities like music time, playtime, language arts, math activities, and more. Also, Lightbridge offers parents real-time access to their child’s daily activities with the innovative ParentView® Internet Monitoring app.
Fast facts:
- Locations: 67
- Founded: 1997
- Franchised: 2011
- EBITDA: $2,214,072
- Startup cost: $622K–$1M
- Franchise fee: $40,000
Building Kidz School
Building Kidz School offers performing arts-focused childcare for all age groups, from infants to school age kids. The proprietary curriculum fully integrates music, dance, and theater to meet age appropriate development standards through classes and Broadway style productions. Unlike other childcare business opportunities, Building Kidz leverages a flexible business model that allows for acquisitions, conversions, new site development, partnerships with churches, partnerships with corporations for onsite and offsite campuses, and even partnerships with apartment complexes. As a franchisor, Building Kidz Worldwide dedicates 25% of profits to helping underprivileged children at home and around the world.
Fast facts:
- Locations: 40
- Founded: 2002
- Franchised: 2015
- EBITDA: $1,102,576
- Startup cost: $266K-$1.1M
- Franchise fee: $50,000
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