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Child Education Industry Report 2011 - Industry Overview (2)

Industry Overview

In the United States, the overall education and training services industry has annual revenues totaling more than $30 billion, and includes about 45,000 companies along with those who are self-employed. Due to the number of potential subjects that can be covered, it is a highly fragmented industry with the 50 largest companies representing approximately 30 percent of the total revenue of the industry.1 The Goddard School, Sylvan Learning, Huntington Learning Center, and Kumon are among the franchise industry leaders. It’s worth noting that there is quite a bit of overlap between the child education franchise industry and the child care franchise industry.


Child Education-1Education franchises are part of the supplemental educational market, and provide important services that nurture a child's development. Subject areas within the industry are quite diverse, ranging from more traditional subjects like math and science to less traditional ones like art, dance, music, and driving instruction.


According to the National Center for Education Statistics, there were an estimated 49.4 million children enrolled in public school (prekindergarten, elementary, and secondary school) during the 2009-2010 school year.2  Traditionally, the main market for education services has been these children, particularly the subsets of older children who are having difficulties with certain subjects and those who have a learning disability.


But in recent years the market for child education has expanded to include younger children, including those that aren’t yet school age whose parents want to give them a head start in education. It also includes parents who seek to expose their children to areas not discussed as part of regular school curriculum, including ones like the non-traditional subjects referenced earlier. These subgroups have essentially expanded the market to all of the population under the age of 18, which according to the latest U.S. Census is comprised of over 75 million people (estimated).


“The recent recession has not had too bad of an effect on us,” according to Novak, and generally speaking the child education franchise industry did take a hit during the recession, but not as big a blow as other industries were forced to absorb. “On the consumer side, we realize times are tough, and monthly [fees] may not be the easiest to come by, but parents will find a way to make it work for the betterment of their children.” Experts project the industry to experience steady growth over the next five years. Because of this expected growth, the industry is experiencing increased competition. Competitors to franchise operators include educational services offered on the Internet, tutoring institutes, tutoring centers, learning centers, test prep centers, cram schools, individual tutors, self-tutoring programs, along with other individuals, companies and organizations.

Child Education-1 




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