What Determines the Cost of a Daycare Franchise

Breaking Down the Cost of a Daycare Franchise

The childcare industry remains one of the most profitable, recession-proof franchises in the nation. At a net worth of over $50 billion a year, investors can rest assured the demand for high-quality early education and childcare continues to expand. But what goes into acquiring a franchise? Below, we outline the cost of owning a childcare franchise so you can feel prepared when starting your investment journey. 

What Determines the Cost of a Daycare Franchise Opportunity? 

Starting a business can be daunting, but the beauty of purchasing a franchise is that you don’t have to start from scratch. As a franchise owner, you’re buying into a proven business model with ample support given from corporate leaders and their vendor connections. This makes a huge difference in determining the most efficient path towards financial success.

While daycare franchise costs vary, there are a number of factors to consider to establish the total investment fees. 

To read Ducklings’ total investment fees, click here to scroll.

Location 

The location of your business dictates how much you would invest into a property and how much you can earn. In the case of Ducklings, our corporate leaders select school location sites based on population size, local socioeconomic demographics, quality area of schools, permitting, and neighboring businesses. This helps us ascertain the best available territories to guarantee the franchise is profitable. 

Also, because of our established reputation, business owners can leverage our connections with local vendors to negotiate optimal deals on real estate options and leasing agreements. 

Registration, Licenses & Permits 

A franchise will help you apply for mandatory registration, licenses, and permits such as a CDA license, building license, zone permits, and sign permits. Depending on local laws, other requirements may need to be met such as CPR certification and medical clearance. During this process, state inspectors will certify your site meets local requirements such as health regulations, fire regulations, physical space, and educational requirements.  

These costs depend on local city, state, and federal guidelines. While Ducklings will help you determine which licenses and permits you need, for more detailed information on your state’s laws and regulations, you can contact your state’s Department of Children and Family Services office. 

Insurance 

It’s important to file for insurance to protect your business, property, and employees. While policy costs will vary, franchise owners need to at least acquire general liability insurance to cover any injuries on your property or during field trips. For greater protection, owners can file for professional liability coverage, which provides liability protection for mishaps such as lack of supervision that leads to an injury or oversights in background checks. 

Most states also require child care centers to provide workers’ compensation in the event an employee gets hurt onsite.  

Branding & Marketing 

Purchasing a franchise like Ducklings Early Learning Center offers the major benefit of being able to access all brand standards and marketing strategies. Our brand is well-established and our services have undergone thorough quality control. This will help offset marketing costs in comparison to starting an independent business with no name recognition. Target demographics are often already familiar with our brand and associate it with high-quality care and education.

Furnishing, Equipment, & Supplies 

Parents want to ensure their children are in a safe, inviting environment that encourages them to explore their surroundings. Equipping the center to include all necessary items and supplies for educators and students is compulsory to provide superior care and education and to drive enrollment rates. The cost for furnishing and equipping the facility, as well as purchasing supplies for adults and children, will vary based on franchise requirements and recommendations. 

This can include:

  • Children’s tables and chairs
  • Baby cots
  • High chairs 
  • Children’s bedding 
  • Mats
  • Media equipment for TVs, DVDs, and/or computers 
  • Office furniture, landline telephone, and filing cabinets
  • Cash register
  • Security and fire alarm equipment 
  • Playground supplies 
  • Children’s toys & books 
  • Art supplies and music equipment
  • Food and kitchen supplies
  • Bathroom and potty training items 
  • Cleaning supplies

Employees

Parents expect childcare employees to keep their children feeling safe and nurtured. Hiring and training qualified educators who can follow specific safety guidelines and smoothly implement a set, streamlined curriculum ensures trust and credibility among enrolled families. To obtain qualified employees, franchises must offer a competitive salary and benefits to compensate for their experience and time.

Ducklings Early Learning centers offer multiple locations, classrooms, schedule options, and staff levels to prospective employees. Our locations also offer continued educational support to help employees achieve career goals, as well as a competitive salary at upwards of $18-20 per hour and benefits packages. Additionally, employees can also look forward to no night, weekend, or holiday shifts. 

How Much Does It Cost to Own a Ducklings Franchise?

The total initial investment range is between $756,400 to $1,719,500. This includes the Franchise Fee, and initial expenses such as real estate and construction contributions, all furnishings and equipment needed to operate your business, and your Grand Opening Marketing Budget, to name a few.

Outlining Ducklings Daycare Franchise Numbers:

  • The franchise fee is $75,000
  • The royalty cost is 6% of the gross revenue
  • The advertising cost is 1% of the gross revenue
  • A Franchisee’s net worth requirement is $500,00 to $1,000,000
  • A Franchisee’s liquid cash requirement is $100,000

Ducklings is here to help you each step of the way. If you have any questions about the investment process or otherwise, feel free to get in touch with us by calling 484-607-8248, emailing us at info@ducklingsfranchise.com, or by filling out an inquiry form.

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