Six Childcare Franchises to Invest in 2022
As America begins to lift mask mandates in public spaces for those who are vaccinated and with summer fun activities on the horizon, childcare franchises could see a strong surge of growth in summer 2022 and beyond.
A market study by Grand View Research found that the U.S. childcare market size was valued at US$54.3 billion in 2019 and is expected to grow at a CAGR of 3.9% from 2020 to 2027. The main market driver behind the growth is the increasing number of dual working parents and the rising popularity of early childhood education. In 2019 alone, 1.4 million and 3.7 million students were enrolled in pre-kindergarten and kindergarten, respectively.
While quarantine from the pandemic allowed parents working from home to save on childcare, many businesses plan to reopen in some capacity for 2021 which will likely bring demand back.
A survey conducted by the Center for American Progress found that there is a rise in awareness of the link between economic growth, parental employment, and access to childcare, which is causing an increase in the availability of childcare centers that is increasing competition and bringing prices down.
According to a report conducted by Child Care Aware of America in 2019, childcare is a large portion of a family's monthly expenses, so much that in 2016 2 million parents had to make career sacrifices with one spouse staying home for childcare. In response, the Child Care Development Block Grant (CCDBG) received additional funding worth USD $5.3 billion in 2019 and the Biden administration substantially increased the federal tax credit for families with children. Employers are also taking notice of the importance and economic return on childcare by offering onsite or near-site childcare facilities for their employees.
Check out these childcare franchises ready to take on the summer surge:
Founded in June 2017 and opening its first franchise the same year, Skidaddles drop-in childcare franchise has expanded from Florence, Kentucky to Mason, Ohio. The company’s rapid growth was recognized in 2017 when Skidaddles received a Best of NKY Award and a Best of Parenting Award. Initial startup costs to open a franchise with Skidaddles start at $188,276. To learn more about a franchise opportunity with Skidaddles, click here.
Ducklings Early Learning Centers
Founded in 1994, Ducklings Early Learning Centers began franchising in 2016 and has grown to six locations. Ducklings Early Learning Centers reported a $1.3 million average per unit in annual gross receipts for 2019. Initial startup costs to open a franchise with Ducklings Early Learning Centers start at $616,000. To learn more about a franchise opportunity with Ducklings Early Learning Centers, click here.
Adventure Kids Playcare
Founded in 2004 and franchising since 2006, Adventure Kids Playcare has grown to 16 locations and is seeking new franchisees throughout the US. The franchisor attributes its success to the company’s comprehensive start-up training that includes 40 hours of on-site start-up training with constant education courses for franchisees, directors, and staff throughout operations. Initial startup costs to open a franchise with Adventure Kids Playcare start at $75,000. To learn more about a franchise opportunity with Adventure Kids Playcare, click here.
Discovery Point Franchising, Inc.
Founded in 1988 and franchising since 1990, Discovery Point Franchising, Inc. now owns 47 locations. One of the most experienced childcare franchises in the market, Discovery Point delivers preschool learning and development programs through a nationally recognized curriculum. Initial startup costs to open a franchise with Discovery Point Franchising, Inc. start at $300,000. To learn more about a franchise opportunity with Discovery Point Franchising, Inc., click here.
Founded in 1996 and franchising since 1999, Children’s Lighthouse has grown to 55 locations with 40% of growth coming in 2020 alone. The franchise offers childcare for infants through school-age children, with a number of distinct age-based curricula. In 2017, Children's Lighthouse franchisees whose schools were open for at least 18 months averaged gross revenues of $1,625,330. Initial startup costs to open a franchise with Childrens Lighthouse start at $200,000. To learn more about a franchise opportunity with Children’s Lighthouse, click here.
Franchising in the US since 1988, Goddard systems has spent the last 25 years growing its childcare franchising knowledge, model, and resources as it built its preschool and daycare franchise. Franchise Business Review awarded Goddard Systems a Top 50 Franchise in Franchisee Satisfaction award in 2018 and Entrepreneur ranked Goddard in its Franchise 500 in 2020. Initial startup costs to open a franchise with Goddard Systems start at $150,000. To learn more about a franchise opportunity with Goddard Systems, click here.
Tierra Encantada was founded in 2013 by Kristen Denzer, a growing entrepreneur in Minneapolis, who after adding "mom" to her resume, saw a need for better and more enriching daycare for young children. The first location opened in 2013 and quickly grew to become six centers in the twin cities metro- many with extensive waiting lists to enroll for the Spanish immersion early education the program offers. Tierra Encantada currently has 5 active franchisees. Plans are to expand further throughout the Nation in the next 3 years. To learn more about a franchise opportunity with Tierra Encantada, click here.