If you’re curious about how to open up a preschool, then it will benefit you to learn about the investment details of starting a Building Kidz franchise.
Before you invest in any business, you have to know two things. First, is there a strong demand for this business’s services? And second, what level of investment is needed to be successful? Let’s first look at the demand for Building Kidz centers.
How many parents do you think need or want the services of a preschool or daycare center? Would it surprise you to learn that it’s close to three quarters of all parents in the U.S. today? Approximately 70% of homes with children have both parents working. Office workers, tradespeople, remote workers, shift workers, and even part-time workers all need and benefit from the services of preschools and daycares. We’ve seen many significant changes to the nature of labor in the past 20 years, but the demand for daycares and preschools has only increased.
Many people lost their jobs during the Great Recession of 2008, and yet this global economic turndown didn’t have a significant negative impact on the daycare and preschool industry. Many people lost their jobs or had to work from home during the Pandemic, but the childcare industry wasn’t affected as harshly. Federal guidelines that were adopted by 20 states, and state-level guidelines of at least 28 states, listed childcare as essential. Almost universally, daycares and preschools were declared essential businesses, and many states designated child care providers as “essential workers” as well.
If you’ve ever tried to work remotely while simultaneously keeping your child occupied—let alone teaching your child—then you know the value of a good preschool. Time and again, preschools have shown themselves to be resistant to microeconomic and macroeconomic trends that negatively affect many other businesses.
If you’ve never owned or looked into franchising before, it’s important to know that franchisors don’t provide potential franchisees with one universal number needed for investment. How much it costs to start a franchise and make it operational varies significantly depending on location, both on a local level, e.g. how big a space do you need to buy or rent, and on a macro level, e.g. how expensive are real estate in resources where you live.
The total investment number that a Building Kidz franchise requires has a wide range, from roughly $260,000 to just over a million dollars. In the context of starting a business, even the high end of this range is relatively low.
Building Kidz preschools are low-cost franchises. For example, the total investment required for a well-known fast-food restaurant is regularly over two million dollars. Many franchise locations are owned by investment firms. Hardworking individuals who want to be business owners need to look for low-cost franchises if they’re going to succeed.
A Building Kidz franchise doesn’t require expensive equipment and you can run a preschool with a small staff. Furthermore, because there’s such strong demand for early childhood education, banks and financial institutions are often open to financing entrepreneurs who want to open their own preschool. Not all preschool or daycare franchises are low-cost franchises, though. Other daycare and preschool franchises can’t offer the lower barrier to entry that Building Kidz provides our franchisees. Our flexible business model, coupled with our unique approach to preschool real estate site location, allows us to provide qualified candidates a low-cost franchise option with a high upside.
At Building Kidz, our operating principle is flexibility. Unlike other childcare business opportunities, our flexible business model works for acquisitions, residential conversions, new site development in retail centers and standalone buildings, partnerships with churches, partnerships with corporations for onsite and offsite campuses, and even partnerships with business centers.
We don’t have a cookie-cutter approach to childhood education; we’re willing to work with potential franchisees in various circumstances. We have demonstrated the scalability of our model at different campus sizes; our franchisees can open in spaces that allow for as few as 50 students. We also have a proven model to support schools with over 200 students.
If you want to start a business in an industry with continually rising demand, that’s an economic growth driver, and which is resistant to economic downturns, then start a preschool; If you want to enjoy industry leading profitability, exceptional gross margins and extremely low comparative capital costs, then buy a Building Kidz franchise. Please contact us to learn more!