Step-by-Step Guide to Opening a Successful Daycare Franchise Business

Searching for how to open a daycare franchise? The role and importance of day-care facilities are increasing significantly in India, not just in major metropolitan areas but also in small cities. With the increased number of nuclear families, both the parents being a part of the workforce, the daycare seems the only option, parents can trust for the safety of their children in their absence. This continuously increasing demand for daycare facilities calls for an investment opportunity in the field of daycare franchise business. So, this blog is the complete guide that will help you navigate the process of opening a daycare franchise. 

Understanding the Daycare Franchise Industry

1. Overview of the Indian Daycare Franchise Market 

A daycare franchise stands for a business model where a franchisor or the daycare brand grants the rights to the individuals to operate a daycare center with their brand name and business model. When an individual decides to invest in a daycare franchise, they receive assistance in processes like selecting the site for daycare, training the staff and teachers as per the franchisor’s curriculum, and technical support. 

When opening a franchise daycare business, the franchisee has to make an initial monetary investment, and in some cases has to pay the ongoing royalties as per their revenue. The daycare franchise business idea helps the investors in taking benefit and support from an already established brand. In 2024, the size of the Indian preschool and childcare market is 4.7 billion U.S. dollars which is expected to grow by 5.23 billion U.S. dollars in the next year, making it a very lucrative option for the investors out there.

2. Importance of Quality Childcare Services  

A lot of parents in India are choosing daycare facilities, due to their work-related responsibilities. In India, the tradition of working parents has given rise to the demand for quality childcare services. Parents are willing to invest in their children’s playschool education that provides kids with the opportunity to socialize, play, and learn with their peers when their parents are working in the office. Children tend to feel comfortable in the presence of their peers and develop emotional independence at an early age, helping them even in the later stages of their life. The importance of quality childcare services is increasing due to parents’ requirement to have 24×7 safety and CCTV surveillance. Daycare services also play an important role in imparting skills to the kids that prepare them for elementary education levels. 

(Also Read, Franchise Business Opportunities: Unlocking Your Potential )

Multiple Perks of Owning a Daycare Franchise in India:

If you are an investor willing to invest in the currently booming franchise daycare business, then the below-given points will offer 3 important insights that explain the benefits of owning a daycare franchise in 2024. 

1. Benefits from an Established Brand Recognition 

When an individual chooses to invest in a daycare franchise, they reap the benefits of the franchise’s already well-established brand value. The brand value built by the daycare franchisor will provide a loyal customer base to the investor’s newly established daycare. The parents will be willing to enrol their kids in your daycare due to the trust the brand has built among their customers over the years. Famous established daycare facility franchisors often engage in large-scale campaigns and advertisements that offer benefits and revenue to all the franchisors associated with the brand, without even investing heavily in the advertising. 

2. Proven Business Model of the Daycare Franchise 

Daycare franchise providers have been in the business for a very long time, and with time they develop a proven business model that reduces the risk an investor has to take on opening their daycare franchise. The proven business model of a reputable daycare franchise consists of a successful marketing strategy, a sales-driven mindset, and a commitment to providing the best services to their customers. Established daycare franchise brands, refine their strategies over time which increases your chances of developing a successful business model under their guidance. Various daycare franchise providers encourage multi-unit ownership for investors to attain significant business growth and profit. 

3. Ongoing Support and Training

Investors find daycare franchises a worthy investment due to the constant training and support provided by the franchisor. With the help of detailed training, the investor saves time, that could have been spent on doing his research. The training provided by the daycare franchise teaches the investor how to implement the established SOP’s for consistent service quality. Franchise providers train the investor and their employees, in up-leveling their management game so that the daycare franchise can run smoothly. Investors do not have to do individual research and changes as per the new updates and trends, the franchisor offers their assistance to the franchisee, in adapting to the new changes and standards. 

(Also Read, Preschool Franchise- Perfect Business Idea For Women Entrepreneurs )

How to Open a Daycare Franchise

After analyzing the scope and opportunities in the daycare franchise business, investors would be willing to know the right steps by which they can be franchised by an established daycare franchise provider. This section covers every step that investors should keep in mind before making their investment in the daycare franchise business.

1. Research and Select the Right Franchise   

The first and most important step before investing in a daycare franchise business is to run thorough research and select the right franchise-providing brand whose goals and revenue expectations align with your vision for your business model. When doing your research, keep your personal and professional goals in mind. Run complete research on the current daycare market, and study all the statistics before making your decision. Consider researching all the alternatives and competition present in the market when selecting the right daycare franchise for your business. 

2. Understand the Daycare Franchise Cost 

When an investor decides to invest in a daycare franchise business, they should prepare a draft, mentioning all the research and details related to the company they are willing to invest in. When an investor starts a business by partnering with a franchise provider, they have to anticipate the initial investment cost, even when the investors do not have to build the company from scratch. The investor can expect costs for buying the royalties, and the site for the daycare franchise whether purchased or rented, equipment, licenses, the salary of the employees, etc. The initial investment amount depends on the daycare franchise brand you are investing in. 

3. Financing Your Daycare Franchise 

Before investing in a daycare franchise business, the investor should look for options for financing their business idea. Investors can take a business loan from a reputed lending institution to cover the initial and ongoing investment costs. Other sources to finance your investment in the daycare franchise business can be personal savings and partnerships with other investors. To estimate the investment amount, investors should set a realistic budget that covers expenditures like franchise fees, marketing, and operational expenses, rent, equipment, and staffing. Adequate funding plays a very crucial role in paving a smooth path for your daycare franchise business’s launch and its sustained growth.  

4. Legal Requirements and Licensing 

In some cases establishing a new daycare franchise requires the investor to obtain a license from the relevant government authority. The investors should check beforehand the legality and requirements needed to establish a daycare franchise. Before enrolling the staff in your daycare franchise, run a thorough background check on each of them to ensure the safety of your students. Keep measures like hygiene standards and student-to-teacher ratio in mind before starting your daycare franchise business to provide high-quality daycare services to your clients. 

5. Location and Setup for Your Daycare Franchise Business

The investors should choose that location to establish their daycare franchise, where there is a high percentage of families with young children. The parents from an affluent location would like to enroll their children in a daycare that provides high-end daycare services. Parents from middle-income families look for a daycare that provides good quality daycare services at an affordable price. Investor can keep his goals and the quality of service he is willing to provide in mind, before choosing the location. Investors can also choose to establish their daycare franchise near large employers or working hubs as parents will choose a daycare that is closer to their workspace. Choosing a location with high-security 24/7 will be a plus point for your daycare franchise business, as parents would choose a safe location over a location with no safety whatsoever. 

6. Staff Recruitment and Training 

To stand out among your competitors in the daycare franchise business, select staff and teachers with high caliber and qualifications. Invest the resources and time in recruiting staff who are qualified and passionate about early education and child care. Do not hurry in the process of writing the perfect job description and preparing a formal interview, that will help in selecting the right candidates for your daycare franchise business. 

After establishing a team create a smooth induction process for the new hires, introducing them to your childcare program, your vision, long-term and short-term goals, and your expectations from your staff as the employer. The daycare franchise providers help their investors by training their staff and providing them with guidelines through which they can easily understand and adapt to the daycare franchise’s day-to-day functions. 

7. Marketing and Growing Your Daycare Franchise

After establishing your daycare franchise, and onboarding the high-caliber staff, the next goal should be to indulge in the marketing and growth of your daycare franchise business. To market your daycare franchise, you can either do it all by yourself or hire a team of experts who will guide you through the route of establishing your brand’s value. There are two methods of advertising your business, the traditional way and the digital way. As per your target audience and your budget, you can opt for a strategy that covers both of these methods most aptly. 

(Also Read, Preschool Franchise -A Low Investment, High Return Business )

Challenges and Considerations in the Daycare Franchise Business 

Common Challenges in the Daycare Franchise Business 

1. The investment required for a daycare franchise business, includes the initial franchise fee, legal documentation fees, cost of the real estate, and such other costs. All these hefty investments required to open a daycare franchise can be expensive for a lot of investors. 

2. Some franchisors have strict rules and regulations for the way their franchises will function which reduces the space for flexibility and individual creativity for the investor. 

3. The success of a daycare franchise depends on the overall success of the franchisor, so it’s the responsibility of an investor to choose a well-established franchise that has a stellar standing in the market with years of experience in the industry. 

Overcoming Challenges When Opening a Daycare Franchise 

1. Do not invest in a hurry, take your time, run research, and ask experts to form a well-balanced decision to reduce the challenges associated with opening a daycare franchise.

2. Maintain an impeccable level of safety and hygiene to build the trust of the parents by incorporating rigorous safety protocols, thorough background checks for the staff, emergency protocols, and 24/7 CCTV surveillance. 

3. To excel in the field of daycare franchise business an investor should keep monitoring the performance of their daycare by asking parents for their reviews, checking their online presence, and adapting as per the feedback. 

4. To increase your knowledge of the daycare franchise business field, attend the regular offline and online training provided by the franchisor. Watch the content of various business coaches to understand their approaches and insights and try to apply the relevant advice to your business. 

Conclusion

Owning a reputable daycare franchise business is surely one of the best business ideas that will benefit investors with factors like brand recognition, a proven business model, and ongoing support. By doing careful research, securing financial resources, and fulfilling some legal requirements, investors can smoothly navigate through the challenges and establish their daycare franchise business. 

Frequently Asked Questions (FAQs)

1. What are the best preschool franchises to invest in?

Bachpan Play School is one of the most recognized play school brands in India pioneering in the sector of play school education. With growing demand for quality preschool education, Bachpan stands out among its competitors, from the investment point of view. Bachpan Play School is an experienced established preschool education chain known for its comprehensive curriculum, which focuses on the academic, social, emotional, and physical growth of its students. With consistent support and assistance, Bachpan Play School makes it easier for the investor to own and operate the playschool franchise. 

2. How does a preschool franchise work?

Preschool franchisor who owns an established preschool brand where he or she can offer an individual or entity, to operate a preschool using their established brand, curriculum, and operational systems. When the franchisee purchases the rights to operate a playschool under the franchisor’s brand name, they pay the franchisor in terms of monetary amount and recurring royalties.  

3. What are the legal requirements for opening a daycare franchise?

When investors open a preschool franchise, they have to take the license of establishment and No Objection Certificate from their local municipal authority. The investor should only hire staff, who have cleared their background checks and have the appropriate childcare qualifications to maintain the safety of the students. The infrastructure of the play school should meet the standards of the state guidelines. Each state in India has its specific rules and regulations when it comes to preschool establishment, and the investor should strictly adhere to them.  

4. What factors should I consider when choosing a location for my daycare franchise?

An investor willing to open a daycare franchise should choose a location for an establishment with low competition and high population density. Investors can provide their daycare services near working hubs, making the experience of daycare comfortable and easy for both parents and their kids. 

(Also Read, Why Are Franchise Opportunities Better For A Business? )