A daycare franchise can be your guiding light into the lucrative world of early childhood education. The overcrowding of state kindergartens and the decrease in their numbers played a bad joke on parents, but contributed to the development of commercial institutions. However, the requirements are so strict that not many people risk starting a business from scratch. And acquiring the status of a franchisee of a well-known brand eliminates most of the problems associated with licensing, accreditation, and implementation of a certified program.
About kindergartens
Today's realities regarding the state of affairs in municipal preschool institutions (preschool institutions) are disappointing.
As a rule, groups are filled to capacity, and teachers have to be torn between children. This situation was triggered by the birth boom that began in the mid-2000s, combined with a reduction in the number of kindergartens across the country.
But that's half the problem. The key problem is the inability to get a place for years. In a good way, the unfortunate mother should almost run from the maternity hospital to put the child on the waiting list, and then, perhaps, by the age of three the baby will be able to taste the delights of preschool education.
In recent years, there have been an average of 106-108 children per 100 places in kindergartens. According to 2020 statistics, only 64.6% of children attend kindergartens.
Such conditions have created a favorable environment for the development of the private kindergarten sector. But the field of preschool education does not particularly welcome newcomers-businessmen, who expect regular strength tests in the form of checks for compliance with standards and regulations. And rare parents will agree to send their child to an unknown kindergarten.
Buying a kindergarten franchise solves a significant part of the entrepreneur’s problems.
The franchisee receives ready-made educational programs that meet the standards, methods of working with children, comprehensive support from the franchisor in matters of employee selection, premises, advertising, a ready-made payback plan, and, most importantly, a great name.
Advantages of organizing a kindergarten franchise
- There is no need to waste time developing your project.
- Ability to use ready-made methods.
- Help from the franchisor in case of difficulties.
- Brand awareness.
- There is no need to painstakingly study the market in order to choose the right location, optimal premises and necessary equipment: this is, for the most part, the concern of the franchisor.
- Legal support in preparing the necessary documents.
- Quick start of business.
- Reduced payback period thanks to well-organized marketing.
- Assistance in obtaining a subsidy for opening a kindergarten (approximately 300 thousand rubles, not all franchisors provide such assistance).
Kinds
Depending on the type of property, the following kindergartens are distinguished:
- State / municipal. Controlled by the Department of Education. They have implemented a unified educational program, as well as a monthly fee established by law.
- Departmental. They are controlled by a certain structure (organization), which determines the educational program and monthly fee.
- Commercial. They operate on a reimbursable basis.
Depending on the characteristics of a particular institution, they can be classified into:
- Regular. Here the child spends 8–10 hours, receives four meals a day, is trained in a general educational program and is under the tireless supervision of educators.
- With a priority direction of development. In essence, this is an ordinary kindergarten, but focusing on some subject, for example, English or drawing. The time allocated for such subjects is increasing, and the staff is being replenished with specialists in this field.
- Development Center. They focus on the in-depth development of the child, so they are usually equipped with a swimming pool, a dance or singing studio, an art workshop or a theater studio.
- Wellness. Intended for children susceptible to acute respiratory viral infections / acute respiratory infections or with a history of chronic disease. Here the focus is on physical therapy, massage, etc.
- Compensating. Created for children with significant health problems, such as blindness, tuberculosis, and problems with the musculoskeletal system. The child here receives upbringing and education taking into account his own characteristics.
Sources of income and premises: main problems
The most serious problem that arises first is the lack and scarcity of choice of suitable premises for a kindergarten. The best option is a building that stands somewhere separately. But the question arises: “which building to choose?” After all, an old, abandoned kindergarten from the times of the USSR is, to put it mildly, absolutely not the case when parents are ready to put their baby in the hands of teachers.
Well, if you rent a couple of apartments on the ground floor of a high-rise building, this may bring additional problems that will be associated with the residents of the building. But, the two above options can become quite viable. Of course, if you approach them wisely.
When choosing premises for a future kindergarten, you should pay attention to three main things:
- Find out about the basic requirements for the premises from the Fire Service and Rostechnadzor. They pay attention to the safety of people staying in the room, so the list of main requirements may seem quite serious to you: toys must be made only from environmentally friendly materials, furniture must be safe from the point of view of the possibility of injury, a certain temperature and level must be maintained in the room. humidity, etc.
- You need to choose a room that, on the one hand, should meet these requirements as closely as possible, and on the other hand, can create a positive impression on potential clients, that is, parents. Perhaps it will be a separate extension to the building, part of a school, etc.
- In accordance with all the requirements of the regulatory authorities, it is necessary to carry out cosmetic repairs to the premises. The emphasis should be on ensuring that parents cannot find something similar in another kindergarten
Another problem is the influx of new customers and, accordingly, profit. This business model does not have many overly expensive services, by selling which you can quickly and earn a lot. It is for this reason that a private kindergarten is often called a “women’s business.”
You simply cannot do without love for small children. Just like without strict moral principles and leadership skills. It is necessary to carefully think through and provide children with the highest quality services: teaching foreign languages, various clubs, overnight stay groups, etc. You can also stand out by picking up your children from home and walking them back after school.
Recommendation : Make one paid service of your kindergarten mandatory (this will create an image for the institution and increase the profitability of the business), and the rest - optional. Moreover, do not forget that you can always adjust the list of services depending on demand.
TOP 7 franchises
Many kindergarten franchises lure budding businessmen with promises of quick payback and high profits. We will talk about truly reputable companies that have earned respect and calling, both from the market and from clients.
These forwards include Little Country, Sun School, Baby Club, ArtFamily, Point of Growth, DIVO Garden and Baby Way.
Little country
The small country was founded in 2010 by Oleg and Alina Budivsky. Just 3 years later, the company was awarded the Prize of the President and Governor of the Moscow Region.
Today, Little Country is a giant holding company, which includes about 60 branches across the country and even its own accredited university and secondary schools.
The network operates in the form of mini-kindergartens for 20 children and huge centers for 6-10 groups. Teachers pay attention to interactive learning, English, dancing and singing. Feedback from parents about Little Country is very positive; the brand’s popularity is undeniable.
Main information about the kindergarten franchise:
- lump sum payment - 100 thousand - 2,600 thousand rubles;
- royalty – 2-3% of turnover;
- there is no marketing fee;
- payback – 6-12 months.
The creators of the kindergarten franchise inform that the start will cost the franchisee 840,000 - 4,900,000 rubles, and the monthly net profit will be 160,000 - 1,300,000 rubles.
The franchisor offers a choice of 5 cooperation formats:
- "Mom's kindergarten." Provides up to 20 seats. Methodological manuals, a brand book, joining a call center, and assistance with inspections will be provided. Lump sum payment – 100 thousand rubles.
- "Region". Up to 60 places, ready-made business plan and marketing plan, personal curator, assistance in obtaining subsidies. Lump sum payment – 600,000 rubles.
- "Business". Provides for the creation of a kindergarten for 3 groups, selection of premises, staff training, assistance in obtaining a diploma. Lump sum payment – 1,000 thousand rubles.
- "Premium". Includes assistance in selecting premises, training employees for 5 years, placement in 3 groups of up to 60 children. Lump sum payment – 2,000 thousand rubles.
- "Exclusive" Provides the right to rent a equipped room with a 50% discount and accommodate 3 groups in it. Lump sum payment – 2,500 thousand rubles.
The royalty for all formats except “Mom’s Kindergarten” is 3% (at least RUB 30,000). “Mom’s kindergarten” - 2% of turnover, but not less than 5,000 rubles.
The franchisee must have premises located on the 1st floor with S not less than 100 m2, meet the franchisor's standards, and show interest in the chosen field.
Let's look at the most popular franchises of preschool institutions
"Wonderland"
— a network of children's centers with studio functions. Operating since 2007. Buyers are subject to the following conditions:
— initial (lump-sum) contribution from 150 thousand rubles,
— royalties (commissions) — 5% of annual income,
— absence of other obligatory payments.
In the “Wonderland” network, original methods of preschool education have been developed and approved by the Ministry of Education and are successfully applied.
The advantages of the franchise are:
— developed step-by-step process for opening a private preschool institution,
— unique methods of working with children (from 8 months to 4 years),
— developed methods of working with employees on hiring issues, principles of motivation, handling complaints, etc.,
— professional consultations on the activities of the kindergarten for the entire period of its operation,
— provision of documentation (instructions and rules).
"Little country"
— a network of preschool institutions that won the presidential grant “Open your kindergarten!” Began operations in 2013 in Moscow. Already in 2014, for the professional approach of employees to creating conditions for early education of children and their development, she was awarded the “Our Moscow Region” prize from the governor of the Moscow region. In 2020, the network of branches already consisted of 30 preschool institutions throughout Russia.
Conditions for purchasing a franchise:
— initial (lump-sum) payment from 250 thousand rubles,
— royalties (commissions) -5% of annual income,
— absence of other current payments in favor of the franchisor.
On the basis of the “Little Country” kindergarten network, it is possible to form your own business with the right to use a well-known trademark.
The parent company guarantees:
— after the conclusion of the contract, assistance from a professional curator,
— assistance in finding suitable premises and choosing qualified employees,
— constant support of the franchisee company,
— legal assistance in registering business activities and obtaining subsidies,
— provision of methods.
Requirements for franchisees from the “Little Country” network:
- presence of a premises with an area of at least 100 square meters,
- exclusion of the use of semi-basements and basements.
The “Small Country” franchise provides three types of tariffs:
- standard package - from 250 to 30 thousand rubles,
— business package, including methods for learning English — 880 thousand rubles,
— a premium package that includes methods for learning English, assistance in obtaining a license, and conducting free training for employees - 1,490 thousand rubles.
"Baby Club"
— An international network company created in 2000, today its structure operates 237 children's institutions in 75 cities around the world.
Conditions for purchasing a franchise:
— initial (lump-sum) payment from 600 thousand rubles,
— royalties (commissions) -7% of annual income,
- no other current payments throughout the year.
A businessman creating a private kindergarten under the Baby Club franchise has the right to use a well-known brand and, in addition:
— provided with step-by-step instructions for organizing a business,
— receives original methods of early development and education (according to Montessori, Zaitsev and Nikitins), approved by the Ministry of Education of Russia,
— receives assistance in recruiting and training employees,
— receives support on legal and organizational issues.
The Baby Club network offers two types of kindergarten organization:
— development center and kindergarten (time spent in it is up to 5 hours),
- kindergarten with in-depth study of a foreign language (English) - time spent in it - up to 10 hours.
Growth point
For about 10 years now, Growth Point has been offering to join a successful and recognizable franchise of kindergartens, as well as children's entertainment centers. Having started operating in 2007, today the company has over 30 centers across the country.
The growth point operates in the form of development centers for babies from 6 months and older children (up to 10 years). The youngest children are taught oral and written communication skills based on a certified teaching manual and their own methodology.
Key information about the franchise:
- lump sum contribution – up to RUB 500,000;
- royalties – monthly from 9,000 rubles;
- there is no marketing fee;
- payback – up to 48 months.
The franchisor offers 5 kindergarten franchise options:
- Start. You will only need investments of 150,000 rubles, without paying a lump sum contribution.
- Game center. Investments required in the amount of 400,000 rubles. and payment of a contribution of 100,000 rubles.
- Studio. Investments will be from 760,000 rubles, contribution – 360,000 rubles.
- Growth point. Investments required in the amount of RUB 1,200,000. and depositing 250,000 rubles. at one time.
- Kindergarten "Growth Point". Investments – from 1,500,000 rubles, lump sum – 500,000 rubles.
As can be seen from the names, opening a kindergarten franchise implies the latter format. In other formats, development and entertainment centers and studios are opening.
Requirements for franchisees: premises of 50 m2 (for Start - 20 m2), number of employees - from 4 people.
Sun School
Sun School was founded in 2013 as an English private kindergarten. Since 2014, the year the franchise opened, the network has grown to 64 establishments.
Children aged 1.5 to 7 years are accepted into the kindergarten. Their training occurs along the ABC chain. A – knowledge, ability to read, write, count, speak correctly. B – physical development. C – communications, joint games, dating. All lessons are held in English.
Key information about the kindergarten franchise:
- lump sum payment – 1,400 thousand – 1,800 thousand rubles;
- royalty – 5% of turnover;
- there is no marketing fee;
- payback period – 18 – 26 months.
The franchisor provides ongoing support with the selection and design of premises, employee training, provides a detailed business plan, and handles advertising. According to statistics from the head office, the monthly net profit from a kindergarten franchise will be from 200 thousand rubles.
Franchisees will require investments in the amount of 4,000 thousand rubles, as well as non-residential premises S 150 - 500 m2.
Financial issue
Of course, a franchise is not a free product and, like other goods and services that we purchase in life, you will also have to pay here.
Each franchisor that has its own network of private kindergartens will definitely require a lump sum contribution from you. Therefore, get ready to shell out at least eight hundred thousand Russian rubles, and this is just to start a business. With such investments, you can open a kindergarten with a capacity of thirty children.
In general, you will need to invest from two and a half to five million Russian rubles in your own kindergarten project. No self-respecting franchisor will allow you less, because all this money will be used to improve the children's life in the garden. If you invest less money, then the kindergarten will not be much different from the state one, and then there will be no one willing to pay more for such conditions.
The royalty to the franchisor in this business is usually five percent of the monthly turnover.
It takes quite a long time for a private kindergarten to pay for itself. This usually takes from sixteen to twenty months.
Baby Club
Baby Club has been providing its services since 2000. The franchise opened in 2009, and since that time about 240 businessmen have joined the network. The club positions itself as an educational and play space intended for children from 8 months to 6 years.
Main information about the franchise:
- contribution – 790 thousand – 1,000 thousand rubles;
- royalty – 7% of turnover;
- there is no marketing fee;
- payback will be 24 – 36 months.
The kindergarten franchise includes 2 options: Baby Club and Baby Garden.
Baby Club is intended for babies from 8 months old, grouped in groups of 8 people. Lessons are held 2 times a week for 1.5 hours. Children are taught to speak, train logic, and develop creative skills.
Baby-Garden is intended for children aged 3-6 years and is a regular kindergarten with a five-day period and full-time work for the child.
For both formats, you can purchase English methods, as well as conduct classes for parents.
The franchisor provides a brand book, training methods, access to a call center, and a personal specialist. Trainings and conferences are held annually for employees and managers. You can count on assistance in legal matters, accounting, and advertising promotion.
The buyer of the franchise will require investments in the amount of 2,790 thousand - 6,000 thousand rubles, premises with an area of 85 - 200 m2, and entrepreneurial experience.
ArtFamily
ArtFamily was founded in 2014 and includes kindergartens and development centers. That is, a child (from 1 to 7 years old) can be sent to kindergarten for the whole day, or brought to football, choreography, and drawing classes on certain days. In total, about 100 different developmental activities have been developed.
Key information about the kindergarten franchise:
- lump sum payment – 400,000 – 700,000;
- royalty – 5% of turnover;
- There are no marketing fees;
- payback period – 9 – 15 months.
The franchise provides all standard services, from training to promotion.
The franchisee will need an investment of 1,200,000 - 5,000,000 rubles, a premises with an area of 40 m2.
Selecting the target audience
Before opening a franchise training kindergarten and center in your city or region, you need to analyze existing competitors and determine the level of demand for future services.
Children's development centers are not just a place to gain new knowledge and skills. In clubs, a child gains additional communication skills, learns to behave in society and achieve new heights, and develops leadership qualities.
On video: Private kindergarten is a profitable business
Let's consider the main types of children's development centers:
- Preschool preparation.
- Comprehensive development of children of different ages.
- Language learning.
- Clubs: acting, sports, educational, etc.
To start your own franchise business, you need to understand what status and level of support you will be working for: your clients will be the premium segment (accordingly, the level of investment in the purchase of a franchise of this kind will increase significantly, as will the degree of your personal responsibility in the development of this representative office brand in this or that city), or you will work for citizens with average incomes, of whom the vast majority are in Russian cities
Assessing the activities of competitors includes creating a list of direct competitors in the chosen niche, methods of their promotion, location, list of services, price tag, promotions.
Buying a franchise for a kindergarten and center means signing a concession agreement and agreeing to all the conditions that the franchisor puts forward.
You will be able to use a ready-made business model. Experts usually identify the following business models in this niche:
Model type | Advantages | Flaws |
House of Creativity | The list of services will include teaching a child drawing, acting, quilling, modeling, wood burning, etc. Each individual type of class is held on a specific day of the week. A strict schedule allows you to clearly organize your work. | Courses are paid for each separately. It is not always possible for one child to attend several types of classes, as they are held at inconvenient times or are too expensive. |
Development center | The schedule includes a range of services: the child receives knowledge from various fields of science and creativity. This can also include foreign language classes and communication with native speakers. Clients pay for comprehensive education for their child. Due to the variety of activities, the groups fill up completely. | It is important to immediately decide for what age children all classes will be conducted. |
Mixed model | The range of services includes both individual classes and complexes. Ability to reach a wider target audience | Difficulties with scheduling, clients are most often wealthy people, the need to rent a large room divided into zones. |
WONDERFUL garden
DIVO is a real flagship of private education for children, with over 20 years of experience. But its branches are distributed mainly in the Nizhny Novgorod region, although the sales region is the whole country.
The kindergarten operates on the basis of supervision and care groups, which accept children from 1.5 to 7 years old. You can give your child away for the whole day or for a few hours when you need to go away on business.
Main information about the kindergarten franchise:
- lump sum payment – 150,000;
- royalty – 10,000 rub. (payment starts from the 3rd month);
- There are no marketing fees;
- payback – from 13 months.
The franchisor provides support to franchisees on literally any issue: assistance with renting premises, design and zoning of rooms, ongoing training, brand book, etc.
The franchisee will have to invest from 500,000 to 1,000,000 rubles, and also select a premises with an area of 80 m2.
Baby Way
Baby Way kindergartens originally appeared in the States in 1992. The franchise of the modern kindergarten format migrated to Russia and the CIS in 2014. There are about 400 branches spread around the world in 35 countries.
The kindergartens accept children aged 1 to 7 years. The main feature of Baby Way is children's coaching, thanks to which the child shows his leadership abilities and learns independence. These qualities help the child more than others at school and in adult life.
All international kindergartens operate on the basis of the Smart Way program, which combines the upbringing and development of the child. The main goal is to raise a healthy, comprehensively developed and happy child. For each state, the program is modified taking into account the national mentality.
Key information about the franchise:
- lump sum payment – 500,000 – 850,000 rubles;
- royalty – 4% of turnover (starting from the 2nd month);
- there is no marketing fee;
- payback – from 7 months.
The franchisor provides the widest range of support to the franchise buyer, assigns a personal curator, and provides benefits for opening a second and subsequent gardens. If the franchisee refuses the franchise, his kindergarten will be bought out.
The franchisee will be required to have a start-up investment of about 1,600,000 rubles, as well as a willingness to strictly follow the established rules.
Adviсe
When purchasing a franchise of any well-known kindergarten, the starting investment will exceed 3,000 thousand rubles.
But there are several recommendations to save money:
- Remember about government subsidies. The state understands that the preschool sector is one of the socially significant areas, and the entrepreneur, in addition to the goal of making a profit, becomes an ally of the state in the upbringing and education of preschool children. Therefore, support in the form of a subsidy is provided for private owners. Its size can reach 1,500 thousand rubles. (based on region). The franchisor must always provide complete information and assist in obtaining a subsidy.
- Make the most of your franchise opportunities. Often, the franchisor can help rent premises at a discount, resolve some legal issues and even resolve conflict situations.
The relevance of opening a kindergarten or development center in Russia
pros | Minuses |
Steady increase in birth rate | Difficulties in registering a business and its organization, increased legal requirements. |
Low social security of state school and preschool institutions. | High barrier to entry into business (some franchisors offer light options for opening mini-clubs, etc.) |
Social significance of business | Regular inspections by government organizations and regulatory authorities. |
High level of stability and profitability | |
Constancy of the client base | |
Possibility of receiving additional profit |