Development of the industry of paid children's centers
The industry of children's development centers in Russia is still relatively young.
In fact, just over ten years ago, no one even thought about so many private kindergartens, let alone children’s centers that would develop children of any age and offer a huge range of different services. It turns out that the industry has developed very quickly from scratch. What was the catalyst for rapid growth? Have parents really begun to take care that their offspring do not vegetate for days on end on the street, as was the case back in the nineties? Not certainly in that way. Let's start with the fact that back in the same nineties there were also many developmental children's centers. And besides, we grab our hearts - free! A child could sign up for all kinds of clubs - from drawing to programming (of course, not like now, but these are doers). And walk freely. And parents didn’t pay anything for it, because everything was subsidized by the state. Alas, it is now considered a relic of the Soviet Union. And the same nineties of the twentieth century became the last stage of the existence of such a system. They stopped subsidizing and paying further. Accordingly, the opportunity to visit development centers for free has ended.
But the need for places where children could occupy themselves with useful activities, freeing parents from this heavy burden, has not disappeared.
And it’s unclear how things would have gone further. But then a couple of global trends intervened and began to reach us. Firstly, the multifaceted development of children, not limited to street experience, began to be promoted. Secondly, business has the opportunity to occupy empty government niches. Thirdly, the population began to perceive with interest the services provided by paid analogues of municipal institutions (people simply realized that they could go to a clinic or kindergarten without encountering rudeness and queues).
All these factors came together, giving such a powerful impetus to paid services in the child development industry (not only there actually), that literally in 10-15 years a huge number of development centers, schools and kindergartens appeared throughout the country.
General information technology, quick access to data via the World Wide Web and new advertising channels also played a role. Thanks to this, certain programs designed for children's education stood out among the “development” programs. That is why every self-respecting development center focused on teaching such disciplines as “mental arithmetic” or “speed reading” in attracting new clients.
Another important factor was the development of franchising in our country. Working schemes spread throughout the territory, went to the regions and countries of the CIS due to the fact that the business community learned to develop according to the franchising system, and aspiring entrepreneurs began to trust this direction.
Which franchise is better to choose?
Before choosing a franchisee, you must carefully familiarize yourself with the individual requirements of the retail and entertainment brands available on the market. Each of the presented brands has its own characteristics, specialization and conditions for registering a franchise.
Smeshariki
Franchising activities began in 2010, the network covers more than 30 cities in Russia. At the moment, 77 franchise enterprises are open: 16 children's, 5 children's centers with cafes, 46 branded stores, 5 Event agencies "Holidays with Smeshariki", 3 agencies for organizing theatrical tours and 2 early development centers.
A franchise from the Smeshariki brand provides a number of advantages:
- legal support, a developed package of documents outlining the algorithm for managing and organizing the business;
- the ability to license the use of a well-known brand;
- methodological guidelines for programs and scenarios for conducting events;
- interior design project, corporate identity, staff training;
- equipment specification;
- information support, advertising campaign, including on the main website;
- marketing strategy.
| Franchise format | Lump sum payment, rubles | Royalty, rubles | Investments, rubles | Payback period, year |
| Children's entertainment center “Smeshariki Friends Club” | 300 000 | 20 000 – 30 000 | 2 000 000 | 2 |
| Children's center with cafe | 350 000 | 30 000 – 40 000 | 3 500 000 | 2 |
| Children's playroom | 150 000 | 15 000 – 20 000 | 1 000 000 | 2 |
| Event Agency | 150 000 | 15 000 – 20 000 | 1 000 000 | 2 |
The room intended for the entertainment center is divided into zones. This is done in order to divide children into age groups and select entertainment and developmental programs in accordance with age and interests. The entire line of products is provided for branded stores.
Leopark
The Leopark brand was formed in Ukraine in 2009, franchising activities have been carried out since 2010.
Children's entertainment is primarily a network of attractions, game modules, electric vehicles and go-karts.
If children are of different ages, then Leopark is ideal for everyone. Parents and children can participate in the fun.
Economic component:
- The lump sum fee is negotiated individually.
- Royalty is also a negotiable price, depending on the scale of the entertainment center.
- Starter package - 300-400 euros per square meter of room area that is planned to be used.
To start cooperation, you will need to independently select a room with an area of at least 50 square meters. When searching, it is important to consider the ceiling height, flooring, kitchen equipment, parking availability, communications, and the like. Having decided on the premises, it is necessary to select qualified personnel. After all this, the franchisor provides:
- assistance in creating a business model for each client who has purchased a franchise, adapting it to a specific location;
- assistance in planning the premises, taking into account its features in the project;
- supply of equipment, technical support during operation;
- training;
- Providing legal support when preparing a package of documents.
The market for children's centers in 2020
By 2020, the market for children's centers was full and very competitive. Companies that developed their franchise for further distribution could only go even deeper - into cities with small populations. Because in all major cities there are plenty of children’s “development centers,” as some people like to call them.
Competition in this segment has indeed been very strong lately. So, if previously clients chose centers for their child based on the services provided, now a significant part is selected based on geography.
The range of services has also become a necessary element. Now, even ordinary private kindergartens are forced to immediately include all popular areas in the list of possible services in order not to lose competitive weight.
We will no longer know how the market would develop further, because 2020 has arrived, and with it the self-isolation regime, which spoiled the plans not only of businesses, but also of business analysts. And private child care centers have become one of many hard-hit industries. The forced closure for several months led to two major changes.
Firstly, changes in the working hours led to the fact that for many entrepreneurs this time became fatal and they did not come out of “quarantine”, losing the lion’s share of their profits.
Secondly, while all the companies that were forced to close began to look for ways to at least partially cover the costs of non-profitable days, the global trend towards digitalization itself intensified. In other words, the strict need for business to exist simultaneously online has manifested itself.
But the problem is that until 2020, a very small number of companies operating in the child development industry offered their clients distance learning options. In fact, such a market did not exist in Russia. And even the most confident attempts to quickly create a service did not lead a single company to success in 2020. Clients themselves were simply not ready to engage in remote training.
However, the emergency left its mark. And the market began to take shape in this direction.
Advantages and disadvantages
Of course, like any other system of running your own business, franchising has its pros and cons. The first thing you should do is carefully study the selling company and evaluate the services it provides. In addition, the lump-sum fee and royalty amounts may vary among different partners, so before purchasing, you need to study several options and choose the one that suits you.
It is important to understand that a franchise is essentially a ready-made business model. How successful your own business opened using it will be directly depends on the experience of the seller and his reputation in the market. Even a good and relevant idea for a business may not bring profit if there is no professional approach to its implementation. When the strategy is thoroughly thought out and the field of activity is studied by the partner, the chances of opening a profitable business are much higher.
A competent business plan, the presence of which requires a franchise, allows an entrepreneur not only to estimate the size of the initial investment, payback period and profitability of the future business, but also to avoid possible problems associated with registering and organizing the work of his venture.
One of the most important expense items is advertising. Regardless of the direction in which you plan to open a business, special attention should be paid to promotion. Whether it’s a clothing store or a furniture factory, a competent advertising campaign will allow you to quickly develop a customer base and thereby achieve net profit from sales of goods and services in the shortest possible time.
Collaboration relieves the entrepreneur of the tasks associated with promoting his business. But it is important to evaluate how well-known such a company is in its niche: if we are talking about a world-famous affiliate program, then it itself requires almost no additional advertising. And, conversely, when the proposed business partner is not widely known, you will have to spend more effort and money on promoting your own business, which can increase the amount of start-up capital.
The size of the initial investment is the main criterion for choosing an activity. On the modern market there are a huge variety of franchise offers to suit every taste. But competition dictates its own conditions - for the success of a future business, it is important to choose a direction that would not only bring a stable profit, but also be in demand among the target audience. Since even in small towns there are many different organizations involved in retail trade, entrepreneurs are increasingly choosing the service sector.
But there is competition in this area as well: beauty salons, legal and real estate offices, private medical centers, travel agencies - even in small towns, a novice businessman who focuses on such areas will have competitors. Therefore, it is important to find a solution that would allow you to occupy a free niche of entrepreneurship in your locality.
Focusing on the demand for education, many people give preference to the field of additional development of children. Along with various clubs and sections, in recent years the idea of opening a kindergarten as a franchise has become increasingly popular.
Market trends for children's development centers after 2020
As a result, starting in 2020, the market for children's development centers began to take shape in a new way. And we can identify several main trends that are now influencing its formation and recovery (after the self-isolation regime).
Focus on online. As we wrote above, 2020 proved the need for all businesses to develop in this direction. Even if the main activity is carried out offline. Now, companies must be prepared to offer ways to continue classes in the event of a forced closure of their own classrooms. Moreover, part of the audience will definitely take advantage of this opportunity, despite the lifting of restrictions.
Social distance and safety. Another global trend of new times. People, even if they have not personally experienced the disease, will expect companies to provide safety measures. This is especially true for children's centers.
Franchise development. After every crisis, franchising has become a lifeline for many entrepreneurs. Firstly, it allowed companies to quickly increase volumes. Secondly, during a crisis, people are in no hurry to open their own business from scratch, fearing an unstable situation. At the same time, opening a business as a franchise (that is, according to an already proven scheme) seems like normal practice for them. It will be the same now.
Advantages of a franchise kindergarten
Starting your own business is always a responsible step. Modern entrepreneurs increasingly prefer to start a franchise business. Purchasing the right to operate under a well-known brand makes it possible to count on the help of an experienced company. Kindergarten franchises are also in some demand.
State kindergartens cannot meet the demand from families with small children. In addition to this, there are a lot of other disadvantages of ordinary kindergartens: overcrowded groups, poor quality education, inadequate care conditions, etc. Therefore, opening private gardens is becoming an increasingly attractive and profitable business.
The market for this business cannot be called highly competitive, despite the large number of players and competition with government agencies.
The thing is that the number of children is growing faster than the number of kindergartens, and the kindergartens themselves offer different development programs, from which parents choose the most optimal ones.
However, creating a private garden just for the purpose of making a profit will not bring the desired results. It is necessary to carefully approach the formation of educational programs, organize children's leisure time, and most importantly, love children and be able to find a common language with them and their parents.
Bonuses for cooperation with the franchisor
Pros of purchasing a franchise:
- Franchisors provide full legal support in the preparation of documents.
- The franchisor company undertakes the bulk of the work.
- Stability in the market thanks to the brand.
- Assistance in selecting premises that will meet all necessary requirements.
- Some companies provide assistance in obtaining subsidies.
- Reducing the payback period and increasing the profitability of the project thanks to clear recommendations and advice on how to better interact with clients.
Open a children's center from scratch or buy a franchise
If you are planning to open your own children's center, we recommend that you follow several rules. The first is to conduct a thorough analysis of the local market. Although there have been more “places on the market” since the spring of 2020, competition in this sector is still high, and consumers are selective.
The second rule is do not try to organize a business that will immediately provide clients with all possible services in the field of children's education. Analyze what will be in greatest demand. This way you can invest a minimum at the entrance, and also develop gradually, quickly achieving net profit.
And thirdly, even if you did not plan to open a franchise, do not ignore the offers that are on the market now. First, assessing existing franchises will give you an idea of who you'll be competing with. Secondly, you may find what you are looking for, even if you didn’t think about it. Because companies that successfully survived the self-isolation regime definitely deserve attention.
Children's Language
A Children's franchise allows you to start your own business with a small investment. A low lump-sum fee, a full package of business documentation, unique programs - all this will allow you to open your own Children's Center in a short time and with low investments. The Polyglotiki network includes 50 Centers in Russia, the Republic of Belarus and Kazakhstan. Children's have been on the market for more than 11 years, the franchising system was launched in 2012, the experience accumulated during this time will help even beginning businessmen, even without entrepreneurial experience, to open a successful business.
The Center’s clients are parents with children aged 12 months to 12 years. Previously, Polyglots studied 4 languages: English, Spanish, German and French, but in 2020 Chinese was added to them. School preparation classes are also held.
Franchise features:
- Unique author's programs (30 courses with lesson planning and timing)
- Constantly updated methodological base
- Scenarios for holidays and events
- Regular trainings, seminars, training for teachers and employees of the Center
Support at the stage of opening and further work of the Center:
- Detailed and individual business plan
- Assistance in obtaining subsidies from the state
- Partner training
- Seminars, webinars at least twice a month
- Help from a lawyer and accountant
- Support of a marketer, PR specialist, designers
- Website on a common domain
- CRM system “Polyglotik-business”, which allows you to maintain personnel, financial records, and maintain a client base
- Assistance in obtaining a license for educational activities
Methodologists of the Polyglotiki network have developed unique courses and programs. The main English language course “Small steps to great success” consists of nine levels: for children from one year to 12. Additional courses: mathematics, literature, entertaining science, creativity, theater, fitness - all are taught in a foreign language on a non-translation basis. Vacation programs at children's city camps are especially popular. In the morning, a mini-garden operates in the Network Centers.
Support and training include:
- Training franchisees in organizing and running a business
- Training of all Center employees: teachers and administrators
- Package of documents for obtaining a license for educational activities
- Brand and style of Polyglots, brand book, designer layouts for all occasions
- Marketing plan
- Design project of a room with 3D visualization
- Legal and accounting advice
- Assistance in personnel selection, network specialists will conduct interviews, testing and training of specialists
- Website on a common corporate domain
- CRM system for management accounting
- Participation in regular partner meetings
- A complete set of teaching materials, scripts for holidays and events of the Center
- Regular consultations, seminars and webinars
- Help in obtaining subsidies
- All agreements are registered with Rospatent
Franchises of children's development centers
For those who are looking for an opportunity to start their own business in the children's center industry using a ready-made franchise scheme, we have prepared a short table of offers on the market. Here you can find basic information about what kind of experience the franchise has and what kind of investment you will need to start the business.
After reviewing, we recommend that you consider the selected offers in more detail. And contact representatives of some franchises and ask questions personally. Fortunately, this can be done without intermediaries directly from our catalog. To do this, go to the page of the franchise you are interested in and click on the “get a business plan” button. The application will be sent to a representative of the company, and he will contact you directly.
| Name | Beginning of work | Franchise start | Number of open points | Investments from, rub. | Payback from |
| SandLand | 2013 | 2014 | 33 | 245 000 | 4 months |
| Shkodim | 2009 | 2018 | 30 | 50 000 | 2 months |
| Coddy | 2016 | 2018 | 187 | 350 000 | 8 months |
| IMADE | 2011 | 2020 | 3 | 150 000 | 2 months |
| Pishichitaykin | 2016 | 2020 | 51 | 210 000 | 2 months |
| Kodland | 2017 | 2018 | 17 | 194 000 | 4 months |
| Hello Park | 2011 | 2017 | 20 | 4 000 000 | 18 months |
| Elastico | 2015 | 2017 | 54 | 150 000 | 4 months |
| Algorithmics | 2016 | 2017 | 234 | 600 000 | 3 months |
| Phenomenon | 2016 | 2017 | 20 | 338 000 | 6 months |
| Alphabet | 2013 | 2019 | 11 | 170 000 | 3 months |
| Lil Ballerine | 2015 | 2016 | 142 | 1 500 000 | 3 months |
What does a person who purchases a children's center franchise get?
- Instructional Technology: Detailed instructions on how to teach. Curricula, programs, notes
- Marketing technologies: information on advertising technologies, attracting and retaining customers; a well-known brand (although there are franchises sold by little-known companies); ready-made layouts for signs, banners, booklets, leaflets, etc.
- Information about internal business processes: recruitment and training of employees, personnel structure, document flow, accounting, etc.
If you are just thinking about how to open a children's development center, a children's club, your own development school, or what franchise to buy to make a profit, then our offer is for you.
The franchise of the Talento children's development center allows you to make a profit from 100,000 to 700,000 rubles. per month!
We invite active and energetic people to become our regional partner and open the Talent Academy “TALENTO” in their city.
Read the article “How to choose a children's club franchise” from Olga Korenko, an experienced manager of the most profitable children's center in St. Petersburg.
Who are we?
TALENTO is a network of children's clubs throughout Russia and abroad. Currently, our network includes 19 large children's clubs in Russia and Kazakhstan. The children's club is a successful business in the field of educational services.
Talent Academy "TALENTO" is always open for children from six months to adult high school students, who find here educational activities, creative workshops, dance studios, and sports sections. Children and adults come to us to develop, create, communicate, play sports and spend holidays together.
We are confident that every child, whether a toddler or a teenager, is a talented and creative individual. We do everything to help children realize themselves to the fullest and discover their talents.
Why Talento?
Opening and developing a children's club is a multi-stage process that requires a serious approach; during the work process, at each stage of creating a business, many questions arise, from the selection of premises to legal issues and relations with the client. As a rule, resolving these issues on your own takes a huge amount of attention, time and money. A children's club franchise allows you to effectively manage your resources, time, money and energy.
Having enormous years of experience in the field of paid additional education, we offer ready-made and effective solutions for organizing your children's club on a franchise basis. You can become the owner of the Talent Academy “TALENTO” in your city.
With our help, you are guaranteed to build your own profitable business - a children's development center. A children's club franchise is truly an effective and optimal option for opening a profitable business in the field of children's education.
Form of cooperation?
A classic franchising scheme that fully complies with the legislation of the Russian Federation and the established practice of Russian franchising. We offer to conclude contracts for a period of 5 years with an extension option.
Who are we interested in?
Active, educated, honest and responsible people.
Pedagogical education and teaching experience are not required, but having them will make it easier for you to initially search for teachers and work with them.
In addition to the need to ensure a high-quality educational process, the main task of a regional partner is to understand the market of their region, the ability to sell educational services and provide a high standard of service, which is what we will focus on in individual consultations.
We are interested in building a sustainable federal network of children's clubs, where our partners are interested in doing profitable business under the TALENTO brand.
It is profitable to open a Talento educational services business for children both in a small town and in a large metropolis.
What room?
The area required to open the center is from 70 to 200 square meters.
A first floor with a separate entrance, a walk-through location in a residential area, is desirable. It is also possible to place it in a large shopping center. I want to open Talento
