The Best of the Best Child Care Franchises


U.S. child care market is in growth mode as demand continues to increase in this line of business, according to independent research analysis by Grand View Research. The industry was valued at over $50 billion in 2019 and is expected to experience a compound annual growth rate (CAGR) of 3.9% through 2027. As the study authors point out, the gap is gap between economic growth, parental employment and access to childcare options. Congressional leaders are mulling affordable tax benefits for child care, while many employers are seeking to lead the way by creating nearby child care centers to meet growing demand. However, the agility of the franchise could outpace them. There are dozens of childcare franchise in the market today, focused on childcare, tutoring, after-school activities, athletics, academies and schools. Entrepreneurs looking for a child-centric business model will quickly discover the myriad benefits.

The Evolution of Childcare Companies

Two decades ago, there were few if any franchises that focused squarely on the needs of children. With the exception of nurseries and a few Montessori school options, the market category itself has only seen rapid changes in recent years with the rollout of several new business models. Today, there are specialized opportunities centered on babysitting as the primary driver of business, especially those involving security and supervision. Franchises that cater to the child care industry have evolved over time to become quite diverse, catering to a target audience of over 70 million children in the United States with concepts like swimming schools, tutoring, gymnastics and music schools.

Related: A Childcare Company Could Amplify Your Entrepreneurial Journey

A return to the office

As the pandemic continues to decline in the United States, the majority of businesses are once again looking to utilize the vacant commercial real estate space they have always paid for. Some of America’s largest employers, including the tech giant Twitter, employees remind the office, in a movement that some have dubbed “The big comeback”. Naturally, this raises the question of how workers will manage the need for childcare with the dissolution of remote work. It is estimated that one-third of the American workforce has a child under the age of 14, and as returns to the office continue to grow, the demand for child care will increase dramatically.

Related: A Childcare Company Could Amplify Your Entrepreneurial Journey

Help is on the way

Government and the private sector are increasingly looking for ways to help parents with child care subsidies. The American rescue plan, enacted in 2021, provided immediate – but temporary – payments to households. More than 160 million payments of up to $1,400 have been used to lift five million children above the poverty line. Now they are looking to make this initiative permanent and expand to include free educational opportunities, direct support, and expanded tax cuts, which would put more discretionary income in the hands of parents looking for help. child care options. The private sector is also looking for innovative solutions, providing onsite and nearby childcare, remote work options and other benefits to alleviate childcare issues. If this trend continues, the babysitting the industry will be well placed to take advantage of the opportunity.

The child care franchise industry is an attractive sector for entrepreneurs, especially those who want to work with children and meet the needs of children in their own community. At least one concept Kumon, landed a spot in the top 10 of the 2022 Entrepreneur Franchise 500, six in total landed in the top 100, and 33 child care franchises earned a spot in the full list. A summary of these children’s franchise opportunities can be found by following this link.

Related: Interested in a children’s franchise? Here are the top 15

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