What Does It Cost to Open a Top Notch Daycare Franchise?

questions to ask a franchisor

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A Children’s Lighthouse Franchise opportunity allows you to think big.  Imagine owning a growing daycare and childcare franchise concept with up to 150 children, serving middle to upper middle class families in a nice area.  Deciding to become part of a successful franchise brand is an exciting step, but it does require some due diligence, especially pertaining to the actual investment numbers.  The single most significant driver of the cost to open your own daycare franchise is this:  Should I purchase the land and build, or lease the building and improve?  Let’s compare the daycare opening costs from our FDD:  

Leasing the Land and Building

We understand that investing in a Children’s Lighthouse preschool is a considerable financial commitment, especially when factoring in the cost of real estate. The expense of both the land and the building that will become your school can deter many from taking advantage of our premier opportunity. That’s why we’re especially proud to announce a new business model, one that allows franchisees to lease both the preschool building and the land upon which it sits. It’s a great way to become part of our brand family without having to purchase the real estate required to own and operate your school. While this option still requires one to pay a school development fee of $25,000, as well as for things like inventory, furniture, and fixtures, your total initial investment will range from $1,074,580 to $1,457,05, which is considerably less than what you’d pay if you owned the real estate.

Owning the Land and Building

Owning the land and the property that is your Children’s Lighthouse preschool is a great way to create long-term equity and wealth but does require a considerable financial investment. As with the lease option, you’ll be required to pay a school development fee, as well as expenses for inventory, fixtures, furniture, etc. You’ll also need to buy the land and pay for the construction of your new school. In total, you can expect to pay between $5,855,974 and $8,933,880 as your cost to open a daycare franchise with us, which is considerably more than the lease option. However, depending on your financial situation, this may be the best option for you, as it allows you ownership of the real estate, which can be a tremendously valuable asset.

Initial Franchise Fee and Monthly Payments

With all franchise brands, part of the cost to open a daycare franchise includes an initial franchise fee.  The Children’s Lighthouse fee is $85,000, which gives you access to our proven business model, proprietary assets, our comprehensive franchise training, and use of the Children’s Lighthouse name. 

After doors open, franchisees pay a monthly royalty of 3.5% against their school’s gross revenue during the first six months of operation and 7% after that. These help pay for the ongoing support services you receive, in-house marketing on your behalf, research and development, and much more.  

What Makes Our Daycare Franchise Such a Standout?

Children’s Lighthouse franchisee support is structured to include just about everything you’ll need to open and operate your school successfully.   This helps make Children’s Lighthouse such a standout in a competitive industry.

You’ll want to align with a brand that has a proven business model, one that will allow you to make the most of our industry, and preferably one with multiple revenue streams. You’ll also want to make sure you have access to ongoing support, so you’ll always feel prepared to leverage that business model. Below are a few other considerations:

  • Family-Owned and -Operated 

People trust family-owned small businesses because they know they can go to them and be heard, and your Children’s Lighthouse school will benefit from that same reputation. 

Our founders, brothers Mike and Pat Brown, opened the first Children’s Lighthouse school in 1997, knowing that high-quality childcare had to go beyond simple babysitting and playtime. They were parents themselves and understood the value of rich learning environments for children. Today, the Children’s Lighthouse franchise brand is still owned and operated by the Brown family, with Mike Brown, the son of one of our founders, now at the helm.

  • Approach to Education

Our Lighthouse Pathways approach to education offers an enriching environment that provides opportunities for individualized skill development, group learning, self-regulation, and inquiry-based investigation with a focus on four key areas: Confidence, Connection, Continuous Improvement, and Curriculum. Our proprietary approach will be a competitive advantage you can rely on time and time again.

  • Brand Recognition

While there’s certainly nothing wrong with partnering with a new or emerging brand, there are definite advantages to aligning with an established one. The Children’s Lighthouse name has been a leading one for almost three decades, and in that time, we’ve become a highly respected and recognized industry leader.  That means, as a Children’s Lighthouse franchisee, you don’t need to spend nearly as much time establishing your school as you would otherwise — the Children’s Lighthouse name has already done that for you! The time required to establish yourself can instead be spent on reaching out to your community and growing your businesses.

A franchise investment is an important one, no matter what brand you choose to align with. Because of that, it’s imperative that you research your options, compare value propositions and industry strandings, and come away with a clear understanding of what it is your money is buying. We’re happy to answer any questions you may have about a Children’s Lighthouse investment and are confident that once you do your research, you’ll appreciate just what an exceptional opportunity ours is.

To find out more about our new business model and the cost to open a daycare franchise with Children’s Lighthouse, reach out to our team today!

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