Preschool franchises build on the same basic idea as any other franchise, with a recognizable brand and business model developed by a parent organization that supports its franchisees every step of the way.
Understanding the Basics of Preschool Franchising
Preschool franchises provide consistency and quality that put parents at ease, with brand recognition and a consistent increase in sales that can lead to a uniquely profitable, rewarding experience. At The Goddard School, we have an extensive support network, with over 600 franchise locations, and the most current academically endorsed methods for early childhood education.
Defining a Preschool Franchise
A preschool franchise is a usually profitable partnership through which the preschool franchisee benefits from brand recognition, resources, and guidance, reaping all the benefits of a large brand’s support while simultaneously opening their own business. A child care franchise is also uniquely rewarding for those with a passion for education and growing young minds. Though the fees for franchises can be steep, with initial investments going into the six figures, a number of small business loans are available, and unlike a small independent daycare, franchises provide a well-defined brand with help in everything from securing a location to forming lesson plans.
How Preschool Franchises Work
How does a franchise work? Preschool franchises lay out franchisees everything from starting costs to marketing costs to information on what the parent organization will provide. Some franchisors help with securing a location, enrollment support, digital marketing, and other professional resources so you can build and run a successful business.
Benefits and Drawbacks of Owning a Preschool Franchise
Owning a preschool franchise is a significant investment, and it is important to consider franchise advantages and disadvantages before signing at the dotted line. The support you receive as part of a larger franchise can be critical, especially if you have not opened and operated your own business before, but the costs are also significant, even with the loans offered. Below are some advantages and potential disadvantages to consider before you open your doors to educate the next generation.
The Advantages of Owning a Preschool Franchise
The advantages of franchising a preschool are vast. You will be given access to a business model that has already been tested for success, as well as have use of a known brand name that will give prospective parents peace of mind. The support you’ll receive from the franchise is invaluable, and you also get access to fellow franchisees of the same company, who can give you advice and offer collaboration opportunities for shared growth and success.
Potential Disadvantages to Consider
It is important to consider any franchise disadvantage, too, so you can make an informed decision before opening your new business. There is an initial franchise fee along with ongoing royalties, and while grants and loans can help with these costs, the expense can still be significant. However, when you invest in a franchise with a proven business model and track record of success, these costs can be mediated. Franchisors also set guidelines that franchisees must follow, and while their good reputation can help jumpstart your business, should the parent organization receive bad press or develop a bad reputation at another location, it can impact your business negatively, too. Again, while franchise guidelines might be limiting, they are there for a reason especially when working with a successful franchise.
Choosing the Right Preschool Franchise
There are a plethora of franchise opportunities to consider, and finding the right franchise is a vital part of starting off on the right foot. Be sure to do your research on a prospective franchisor’s track record and online reputation – what are people saying about their experiences? You should also crunch the numbers and make sure you can afford the initial franchise fee and ongoing royalties, and also that the cost is worth the support and resources the franchisor provides, as well as any restrictions and requirements the franchisor has. Finally, be sure to do local research as well so you can understand who your competition would be, the size of your prospective customer base, and what parents are looking for in your area.
Purchasing a Franchise
While purchasing a franchise can be more costly in the short term, the long term benefits can make up for the initial out of pocket, with ongoing resources that not only set you up for success, but continue to guide you every step of the way.