Child education franchises have enjoyed a solid growth over the past ten years, pandemic blip notwithstanding.
It should be noted that while franchises in this area tend to primarily focus on school age kids, these franchises cater to students of all ages. For example, Tutor Doctor has tutoring programs that range from elementary & middle school up through adults. The franchise even has specializations for home-schooled students, veterans, and those with special needs.
Speaking of specializations within the industry segment, new ones are popping up all the time. For example, as STEM gained in popularity, Sylvan evolved its programs to keep up. Now, Sylvan is the largest provider of STEM programs in North America in addition to its tutoring, test prep and academic coaching services.
And the specializations don’t stop there. Take gifted children, for example. The National Association for Gifted Children (NAGF) says that, “Although Federal law acknowledges that children with gifts and talents have unique needs that are not traditionally offered in regular school settings, it offers no specific provisions, mandates, or requirements for serving these children. Currently, gifted education is a purely local responsibility and is dependent on local leadership.”
Seeing this gap in the marketplace, Tobi Phillips, Ed. D. (cert.) founded Village East Gifted to provide enrichment for gifted students in grades kindergarten through college.
Children with autism have also become a focus for catered child education offerings in franchising. Hi-5 ABA Board Certified Behavior Analysts (BCBAs) help clients diagnosed with autism and/or other developmental disabilities resolve behavior problems, improve social skills, and become more independent.
There are also child education franchises specializing in music, dance, art, sports, cooking and more.
The Solidified Bond Between Child Care and Early Childhood Education
Years ago, the vice president of Kiddie Academy told us, “There's great demand for quality child care right now. It used to be that a parent was just interested in daycare, but now they're interested in quality education [as well].”
Those words have proved prescient. Newer daycare franchises like IvyBrook Academy and Celebree School were developed specifically with early childhood education in mind for infants and preschool aged children. These franchises employ specialized curriculum that provides an educational experience that, as Celebree states, “fosters a solid foundation for lifelong success.”
And within this area, another major child education franchise specialization that has emerged is language immersion education.
“Study after study has shown that learning a second language at a young age has tremendous benefits,” says Tierra Encantada founder and CEO Kristen Denzer. “Children who learn a second language in an immersion environment have been found to have improved cognitive functioning, outscore their monolingual peers in verbal and math standardized tests, and are more empathetic in their ability to understand another’s perspective in communications.”
Virtual Learning Challenges Lead to Opportunity
“After the year we have been through, milestones seem to mean more,” Jo Kirchner, CEO of Primrose Schools, said in early 2021. “The incredible importance of what we do has become apparent to everyone, and we’re more energized than ever to prepare our next generation of leaders.”
Maintaining or catching up on learning lost to remote learning during the pandemic represents a big opportunity within the industry. According to market research company IBISWorld, “Following long periods of remote learning, demand for tutoring services is expected to exceed pre-pandemic demand to fill potential learning losses associated with at-home classrooms.”
Franchises were quick to notice the opportunity. While Tutor Doctor repurposed its online tutoring offerings for the need of pandemic learning, it was just one of the franchises that also built out new programs such as pod tutoring, homeschooling and online tutor share.
“These programs were built on the principle of being safe, structured learning environments that take the onus off parents whose children need supplemental learning options or supervision during the school week,” said the company in a statement.
Many of these programs have continued past the return of students to traditional school settings, offering additional revenue streams for franchisees as in-person tutoring returns to pre-pandemic levels.
“Across the board, 2020 was a year that stressed the need for innovation and collaboration like never before—and that push has benefited Tutor Doctor in a great way,” said company president Frank Milner. “We will be able to support students in their studies with more resources and programs that continue to be customized to their needs.”
Initial and Opening Franchise Costs for Child Education Franchises
According to Franchise Grade, the average initial investment for a children’s service franchise is $498,202. However, as their sector report notes, “there's a striking difference between the average and median” initial investment number. This is because the “most expensive franchise in this sector” has an initial investment of $5,634,250, which skews the average dollar figure high.
Child education franchises that have opening costs in the millions involve a significant land purchase and require a facility to be built. Many child education franchises have an initial investment range significantly under $200,000.
Our franchise profiles will present you with a basic range for the initial investment or minimum cash required to open a franchise. But when it comes to finding out the details of an initial investment, the FDD is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Keep in mind these estimates are just that, though—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Child Education Franchises
Throughout the length of the agreement there are costs for being a part of the franchisor’s business system. These costs include items such as royalty fees, charges for technical support, and continued advertising/marketing costs.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
In addition, it’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.
How Do Child Education Franchises Work?
The growing, private education industry has loads of promising business opportunities for entrepreneurs looking for something new. Education franchises are a proven business model that runs the gamut from an informal tutoring service teaching math skills or daycare programs to full-spectrum educational services for children of all ages. For a relatively low-cost investment up front, franchise owners can connect with an established brand and develop a large pool of families from a growing, global market.
Benefits of Becoming an Education Franchise Owner
Starting a child education franchise is a continuous learning experience. As positive as this model can be for the children and families who turn to it to meet their needs, it's also a great way to satisfy a passion for education and build a business in an in-demand market. Other benefits of getting into this exciting field include:
- An established business model: Several brands have blazed a trail in the education franchise market. You can benefit from that work by stepping into a large and rapidly maturing market where a lot of the regulations and other pitfalls have already been spotted and are adjusted for or are being worked out right now.
- Excellent training programs: Most large franchises start you out with professional-quality training and materials. This is backed up as you grow with continuing education and up-to-date industry best practices instruction for yourself and your staff.
- Brand recognition: The bigger players in the education franchise market, such as Sylvan Learning, School of Rock, and Mathnasium Learning Centers, are widely recognized international brands whose well-known names do much of the selling due to the brands' excellent reputations and name recognition.
- Scalability: Education franchises are uniquely easy to scale up as your reach grows. Most franchise models are built to expand into new geographic areas and across related topics as your offerings expand.
Ready to Get Started Owning a Child Education Franchise?
Now that you know more about how child education franchise opportunities work, you can get started by checking out more exciting opportunities, such as Children's Franchises, Child Care Franchises and Tutoring Franchises, here on Franchise Direct.