The Best of the Best Childcare Franchises


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The U.S. childcare market is in growth mode as demand continues to rise in this business sector, according to independent analysis by Grand View Research. The industry was valued at more than $ 50 billion in 2019 and is expected to experience a compound annual growth rate (CAGR) of 3.9% by 2027. As the study’s authors point out, there are there is a widening gap between economic growth, parental employment and access to decent childcare opportunities. Congress leaders are reflecting on affordable tax benefits for child care, while many employers are looking to lead the way in establishing nearby daycare facilities to meet growing demand. However, the agility of the franchise could outweigh them. There are currently dozens of childcare franchises on the market, focusing on daycare, tutoring, extracurricular activities, athletics, academies and schools. Entrepreneurs looking for a child-focused business model will quickly discover the myriad benefits.

Related: Franchise Players: Why We Chose a Childcare Franchise

The evolution of childcare companies

Two decades ago, there were few franchises that focused directly on the needs of children. With the exception of kindergartens and some Montessori school options, the market category itself has only undergone rapid changes in recent years with the deployment of several new business models. Today, there are specialized opportunities that focus on child care as the main driver of the business, especially those involving safety and supervision. The franchises that cater to the childcare industry have evolved over time to be quite diverse, reaching a target audience of more than 70 million children in the U.S. with concepts such as swimming schools, tutoring, gymnastics, and music schools.

Related: A childcare business could amplify your entrepreneurial journey

A return to the office

As the pandemic continues to decline in the United States, most companies are once again looking to use the empty commercial space they have been paying for all along. Some of the largest employers in the United States, including tech giant Twitter, are calling employees back into the office, in a move that some have dubbed “The Great Return.” Naturally, this raises the question of how workers will manage the need for childcare with the dissolution of remote work. An estimated one-third of the U.S. workforce has a child under the age of 14, and returns to offices continue to gain momentum, with demand for childcare services rising significantly.

Related: A childcare business could amplify your entrepreneurial journey

Help is on the way

Both the government and the private sector are increasingly looking for ways to help parents with childcare subsidies. The U.S. Rescue Plan, signed into law in 2021, provided immediate but temporary payments to households. More than 160 million payments of up to $ 1,400 were used to raise 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, all of which would put more discretionary income in the hands of parents looking for child care options. The private sector is also looking for innovative solutions, planning on-site and on-site daycare, remote work options and other benefits to alleviate childcare problems. If this trend continues, the childcare industry will be well positioned to seize the opportunity.

The childcare franchise industry is an attractive industry for entrepreneurs, especially those with an interest in working and meeting the needs of children in their own communities. At least one concept, Kumon, ranked in the top 10 in the 2022 Entrepreneurial Franchise 500 in 2022, six in total in the top 100 and 33 childcare franchises in total in one place in the full list. You can find a summary of these child franchise opportunities by following this link.

Related: Are you interested in a children’s franchise? Here are the top 15



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