How to Start a Daycare Franchise

Wondering how to franchise your daycare? It sounds simple right? Well, it can be. If you are interested in franchising your daycare, let's assume that you currently operate a fully licensed child care center. Child care homes are unable to franchise because they are located in the caregiver's own home. This makes it difficult, if not impossible to franchise the daycare.

Now to the basics. Listed below are a few items on your checklist to get you started. Remember this is not a full comprehensive list, as franchising depends on your operation's current policies, procedures, systems, and operations. 

1.) Establish your current operation- Legally 

Each state has a government entity in which businesses are allowed to incorporate. This simply means, establishing your business as a separate entity from the current owner. Incorporating your business will also allow you to get an Employer Identification Number so that you as a business owner will not have to provide your social security number or personal identifying information. 

2.) Decide on the name that will be used to franchise

Locally, most businesses will choose names that are not already in use by other businesses. However, from time-to-time it happens, that some businesses will use the same name as another business if that name is not trademarked or searched properly prior to it's incorporation. Be sure to select a business name that is not in use so that your new franchisee's are comfortable with the brand's name.

3.) Establish  your center's brand

The truth is, most people franchise with certain companies because the brand is already established. The leg-work has already been done for them. They are essentially being handed a "business in a box". For example, if you decide to open a fast-food restaurant. You may decide to franchise with McDonald's or Chic-Fil-A because their brand is already established. This is the same concept when you franchise your daycare or child care program. Be sure that your brand is established to make the deal more appealing to the buyer. 

4.) Choose your franchising system 

This is one of the most important steps in franchising your daycare. How will you get paid? Will your receive monthly royalties? Quarterly royalties? What system will you use to reach how you will receive your payment, and how will you know the success of your centers? 

When deciding to franchise your child care center, be sure to consult with an experienced franchise tax attorney. There are more steps than we can list in one blog post. Franchising is big business as people are making a huge investment in your centers. Happy franchising!

5.) Create your agreements

Your franchise documents and agreements are there to protect you and the buyer. Ensuring that these agreements cover ALL basis is a MUST. Confidentiality agreements, franchising documents, non-disclosure agreements and more are critical to the success of your franchising ventures. 


Need coaching or help taking your center or home to the next level? Enroll in our Million Dollar Daycare Academy!