A preschool franchise allows you to run a valuable business that helps your community. Learn what you should consider when choosing.
Profitability of Preschool Franchises
Before considering preschool franchise opportunities, you’ll want to thoroughly research the industry. Opening a preschool can be a highly profitable business venture, and partnering with a reputable franchise can provide you with a solid path to success. The child care market is forecasted to experience a 5.86% compound annual growth rate (CAGR) for the next six years, reaching a value of $91.68 billion in 2030 and the demand for quality early childhood education continues growing as more parents recognize the importance of early learning, especially when both parents work.
Driving the profitability of preschool businesses is the recurring revenue. For example, if a family enrolls their child at 6 weeks old and they stay till they’re 6 years old, that’s 70.5 months of revenue from that one child. Additionally, families with multiple children will likely enroll all of their children in the same center and any future children as well.
Behind the Rising Demand
Child care is a resilient industry, even in economic downturns, as parents will still need to rely on quality child care while working. Specifically, 27 million Americans rely on child care services while they work, according to the First Five Years Fund (FFYF).
Even now, child care and preschools are becoming more challenging to enroll in due to child care deserts. Before the pandemic, the Bipartisan Policy Center reported that more than 30% of American families lived in an area where only one spot was available for child care for every three children in the area. That number is only expected to increase because during the first year of the pandemic, more than 15,800 child care providers closed, leaving many parents helpless.
Early education centers like preschools are increasing in popularity as people recognize that early introduction to education is crucial versus sending their child to simply daycare. Studies show significant long-term benefits for children who attend high-quality education before turning 5 years old. The Abecedarian Project found that early childhood school attendees are four times more likely to earn a bachelor’s degree or higher by age 30.
What to Consider When Comparing Preschool Franchise Opportunities
You want to franchise with a brand that aligns with your business goals and values. There are several factors to consider when looking at franchise opportunities, including:
- Brand recognition: Choosing a franchise with a strong brand identity and a positive reputation can significantly help you. A recognized brand can draw in more families, assure quality education, and provide a competitive edge in the market.
- Support and training: The benefit of franchising versus starting an independent preschool business is the comprehensive training and support from the franchisor. This includes initial training programs to prepare you for opening day, ongoing educational programs, marketing support, and sometimes a business consultant.
- Investment expenses and potential for returns: Understand the financial commitments, including the franchise fee, royalties, other operational costs, net worth requirement, and liquid capital requirement. Comparing these against potential revenue is crucial. Some franchisors include a glimpse of what franchisees have earned in revenue for the previous fiscal year in Item 19 of their franchise disclosure document (FDD).
- Curriculum and philosophy: Study the different brands’ educational content and philosophies. You want a brand that promotes not only intellectual development but also social, emotional, and physical as parents are keen to choose a well-rounded curriculum.
- Technological integration: In today’s digital age, franchises integrating technology for educational and administrative purposes stand out. This includes using management software, digital communication platforms for parents, and innovative educational tools in the classroom.
- Location: The success of a preschool often depends on its location. Analyzing local demographics, community needs, and competition can help predict the potential success of your location. Also, many preschool franchises are nearly sold out of territories, so choose one that has room to grow.
Why Choose Lightbridge Academy?
Lightbridge Academy, one of the fastest-growing child care franchises, allows owners to improve not only young minds but also the community. Through our Circle of Care philosophy, we place equal importance on the needs of children, families, staff, community, and you as the franchisee.
As a Lightbridge Academy franchisee, you receive extensive training and ongoing support in operations, marketing, and strategic development, equipping you with the tools to succeed.
“We have a good reputation because we were guided and trained to execute the education aspect of children in our care.”- Raj Parkash, multi-unit owner, New Jersey
Our innovative curriculum, which includes a STREAM (Science, Technology, Research, Engineering, Art, and Mathematics) focus, is designed to provide holistic development for children. Our centers use state-of-the-art technology to enhance learning and communication. Features like the ParentView® Internet Monitoring System and the parent eCommunication app allow parents to stay connected with their child’s progress.
Learn more about Lightbridge Academy and what makes us more than just a preschool, but a preferred choice in educational child care. Contact us today.
