Articles

Children Franchises

Hot business opportunities come and go in franchising but one that's currently providing an interesting opportunity is child services franchises, according to a new study by Franchise Business Review. The report examines a number of franchise models within the child services sector to assess the franchise investment opportunity. The businesses evaluated encompass many different offerings, including tutoring and education, sports and physical development, child care, retail/resale stores, and other services like photography and event hosting.

 The report states that the children's services market should keep growing as parents continue to seek new options to stimulate and educate their children.

 "The child services industry is never going away, as proved by our recent research," says Franchise Business Review president and CEO Eric Stites. "Franchisors in this space have performed well over the past few years, despite the economy, and some business models--like youth sports programs--have even flourished. "

Franchise Business Review researchers looked at more than 30 child services franchise companies while conducting their research. They found Kiddie Academy and Primrose Schools--two national franchisors of private preschools--continued to increase their franchise units through 2009, despite the high initial investment required to open this type of business. It's important to note that not all concepts fared as well. A few brands actually experienced a decline in the number of units operating.

"The return on investment isn't always equivalent to the initial amount spent. Bigger investments usually require a physical space, dozens of employees, and lots of overhead, which significantly cuts into profits, while a small home-based business might offer more from a profitability standpoint," says Stites.

Nevertheless, with a little research and market analysis, a child services franchise can be a smart decision.