Franchise ‘My’ Business 101: What Potential Franchisees Consider when Buying a Childcare Franchise?

How to attract potential franchisees for childcare franchises? Instead of asking how to franchise ‘my’ businessaround, consulting with an expert can help you. The childcare market of Australia experienced a 2.9% growth in 2022 (0.6% growth per year on avg. during 2017-2022). The total revenue of the Australian childcare market was $8.6 billion in 2022. Reports also show that the revenue of Australia’s daycare sector has increased by 1.8% per year through five years during 2022-23. It’s also expected to grow by 2.1% (2022-23) and reach $14.7 billion with a profit margin of 5.5%. And hence, childcare franchises can be a lucrative opportunity for potential franchisees. But this alone can’t make your brand good enough for them to invest in. You should look for the factors that your franchisees will be interested in. And we’ll talk about that in the below article.

6 factors most franchisees consider when buying a childcare franchise

Childcare franchises are lucrative to invest in these days. But not all daycare centres are the same. Thus, most franchisees look for vital factors when investing in a pre-K franchise. Hence, improving those sectors can make your brand lucrative enough for potential franchisees.

And, here’re them,

1. The recommendation and reviews of the daycare brand:

One of the most vital factors most franchisees care about is the brand reputation. It’s because the franchisor’s success will be tied to their success. Thus, they’ll consider both the strong and weak points of a childcare brand.

Having good reviews from your clients and recommendations can bring you a positive reputation. Also, ensure that your current franchisees (if any) are happy working with you and resolve online complaints (if any).

2. Cost of starting and running a pre-K franchise:

Opening a daycare business and running it is one of the most vital factors franchisees will consider beforehand. Alongside that, there’ll be the franchise fees and royalty fees that they’ll have to pay you.

Hence, you should include everything in your Franchise Disclosure Document (FDD). It’ll help potential franchisees understand the total cost of investing in your childcare franchise unit.

3. The franchise rules and obligations:

Even though most daycare centres provide similar services, the franchisors have different models. And hence, different childcare franchisors have varying contractual rules and obligations. Most franchisees look for pre-K franchises to see the rules and obligations of the brand.

Thus, you should draft your FDD and FA (Franchise Agreement) by a professional and include all the essential points in them.

4. Competitors in the franchise location:

A potential franchisee will choose a childcare brand with fairly less competition on the franchise site. If the brand has got biggest competitors on the franchise site, they may skip that.

Hence, look for locations where your brand has enough popularity and demand. Setting up your daycare franchises in sites with no demand can drive potential franchisees away from your brand.

5. Openness to creativity and flexibility:

Most daycare franchises follow strict rules and regulations around their franchise units. Well, it’s one of the vital things most franchisees consider when investing in a daycare franchise.

You can think of allowing the franchisees to be creative and flexible. Being able to control things like staff wages, hours of operation, software systems, etc., can be a green flag.

6. The growth of the franchisor:

Last but not least, no one wants to invest in a daycare brand that’s not profitable. Every franchisee will consider the franchisor’s growth before investing in the daycare brand.

Thus, you must include this in your franchise ads and FDD.

Are you planning to expand your childcare brand nationwide? Instead of asking how to franchise ‘my’ business around, ensure that it’s lucrative enough to attract potential franchisees. And, we hope this article will help you with that.