Buying a business is not a transaction to take lightly. It is a life changing decision and whether it is a positive or negative change depends on whether or not you can make a steady profit. Opening your own daycare may be your dream but it takes a huge amount of devotion, time and money. There are many challenges when you become an entrepreneur. Luckily, some of these challenges can be avoided by choosing to invest in a children’s services franchise instead of doing it on your own.
…because you are much more likely to fail as an independent daycare.
Why do independent day cares fail? Independent businesses, especially daycare centers, do not have the same name recognition or prestige as a healthy franchised system.
Brand recognition is important for any business but this is especially true for daycares. Parents want the best care for their children and are more likely to send their children to a well-known, reputable day care than one that they have never heard of.
Don’t forget the startup costs! These can be overwhelming to a new investor. True, owning a franchise does not mean you won’t have to pay startup costs but it does mean you will have a good idea of how much capital you will need to be successful.
When you consider investing in a franchise, you should always read the franchisor’s Franchise Disclosure Document (FDD). Within this document, you can find all sorts of useful information such as how much the franchisor requires you to have to invest in the franchise. Some franchisors even include financial information about their existing franchisees which can give you an idea of how much the average franchisee makes or even how much they spend to operate their business.
Franchises not only have several advantages over starting an independent daycare, they also make investing easier and clearer. Don’t forget, if you are thinking of investing in a business, whether or not it is a franchise, you should always conduct appropriate due diligence before making the leap.
Why not let us help find the best franchise for you with our Find the Best Platform. Search for and compare franchises to see which one is the right one for you!
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
The most immediate consideration is usually how much is the franchise fee and other ongoing payments like royalty and advertising fees.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.