Starting a daycare franchise is a popular way to enter the childcare industry because it offers a proven business model and established brand recognition. It involves partnering with a franchisor who provides the systems, training, and support needed to launch a successful childcare program.
What is a daycare franchise?
A daycare franchise is a business arrangement where an individual (the franchisee) pays to use the branding, trademarks, and operational systems of an established childcare company (the franchisor).
This model allows you to open a childcare program with a roadmap for success. Instead of building a curriculum, marketing strategy, and business plan from scratch, you follow the franchisor's proven playbook.
Key components include:
- The franchisor: The parent company that owns the brand (e.g., The Goddard School, Primrose Schools).
- The franchisee: The business owner who operates a specific location under that brand.
- Franchise agreement: The legal contract outlining fees, support, and operational standards.
How to start a daycare franchise
Starting a daycare franchise involves researching brands, securing funding, and following a structured launch process. Here are the eight essential steps to get started.
1. Research and choose the right franchise
Begin by evaluating different franchises based on their reputation, support, and culture. Look for a franchisor that aligns with your educational philosophy. Attend franchise expos and speak with current franchise owners to get a realistic view of the day-to-day operations.
2. Understand the financial obligations
Franchising requires significant capital. You will need to cover the initial franchise fee, real estate costs, and startup supplies. Review the Franchise Disclosure Document (FDD) carefully to understand ongoing costs like royalty fees (typically 5–7% of revenue) and marketing fund contributions.
3. Select a location and get licensed
Location is critical for enrollment. Look for accessible sites near residential areas or major commute routes. You must also navigate local zoning laws and obtain the necessary childcare licenses to operate legally in your state.
4. Set up your facility
Your facility needs to be safe, engaging, and compliant with franchise standards. This includes designing classroom layouts, setting up outdoor play areas, and purchasing age-appropriate furniture. Adopting childcare management software like brightwheel early on will help streamline administrative tasks from day one.
5. Hire qualified staff
Your teachers are the heart of your program. Focus on recruiting qualified staff who are passionate about early childhood education. Implement a strong onboarding process and an employee handbook to set clear expectations and retention goals.
6. Develop policies and procedures
Even with a franchise model, you need clear local policies specific to your program. This includes payment policies, health and safety protocols, and emergency procedures. Clear communication here builds trust with families.
7. Create a marketing strategy
While the franchisor provides high-level branding, you are responsible for local marketing. Use social media, community events, and open houses to attract local families and fill your enrollment capacity.
8. Utilize provided training and support
Take full advantage of the initial and ongoing training provided by the franchisor. This support is one of the biggest benefits of franchising, offering you guidance on everything from curriculum implementation to business management.
Top 9 best childcare franchise opportunities
If you are looking for the best daycare franchise to open, here are nine of the most recognized options in the United States for 2026.
|
Franchise Name |
Initial Franchise Fee |
Royalty Fee |
Centers |
|---|---|---|---|
|
$135,000 |
7% + 4% ad fee |
600+ |
|
|
$80,000 |
5–7% |
30+ |
|
|
$85,000 |
7% + 0.5% ad fee |
95+ |
|
|
$50,000 - $80,000 |
7% + 2% ad fee |
500+ |
|
|
$95,000 |
$7k+/mo + ad fees |
47+ |
|
|
$65k - $145k |
7% + 2% brand fee |
300+ |
|
|
$78,500 |
6% + 1.5% ad fee |
25+ |
|
|
$30,000 |
5% + $250/mo ad fee |
21+ |
|
|
$87,500 |
6% |
14+ |
Advantages and disadvantages of daycare franchises
Choosing between a franchise and an independent center is a major decision. Weigh these pros and cons to see if the franchise model fits your goals.
Advantages of joining a childcare franchise
- Brand recognition: You launch with a name families already know and trust.
- Proven systems: You get a "business in a box" with established operations, curriculum, and marketing strategies.
- Lower risk: Franchises generally have higher success rates than independent startups due to corporate support.
- Training: Comprehensive training helps owners with no prior education background succeed.
Disadvantages of joining a daycare franchise
- High startup costs: Franchise fees and specific build-out requirements can make the initial investment higher than opening an independent center.
- Ongoing fees: You must pay monthly royalties (usually 5–7% of gross revenue) and advertising fees for the life of the agreement.
- Less flexibility: You must adhere to strict brand standards, which limits your creative freedom regarding curriculum, decor, and operations.
Frequently asked questions
How much does it cost to open a daycare franchise?
The total cost to open a daycare franchise ranges significantly, often between $600,000 and $3 million. This includes the initial franchise fee (typically $30,000 to $150,000), real estate or lease costs, construction, equipment, and operating capital.
Is a daycare franchise profitable?
Yes, daycare franchises can be profitable. The average profit margin for the daycare industry is around 15%. However, profitability depends on enrollment levels, efficient management of labor costs, and the specific royalty structure of the franchise you choose.
Do I need a degree to own a daycare franchise?
Not necessarily. Many franchisors do not require owners to have a degree in early childhood education, as they provide training on the business side. However, your director (the person running daily operations) will likely need specific educational credentials and experience to meet state licensing requirements.
Bottom line
Starting a daycare franchise can be an exciting and rewarding venture, but it’s important to consider all the factors involved. Access to a franchisor's support can provide your business with much needed resources, but sometimes this agreement is not right for every childcare business. With careful research and planning, you can decide if joining a franchise is right for you.
