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The child care franchise is a booming industry with many competitors who want to keep parents from choosing childcare for their children. There are many things to consider for buyers when opening a Kiddie Academy franchise—from funding options to available territories.
This year, many education-based child care franchises, including Kids ‘R’ Kids, Goddard Systems, Inc, The Learning Experience, BBMA, Goddard School, Primrose School Franchising, Kiddie Academy Franchise, will be open at many locations across several regions in the U.S. and help with early childhood education, commitment to the community, and the Life Essentials® philosophy.
With almost 20 years of experience, Kiddie Academy has created a name in the daycare franchise opportunities. The brand’s knowledge and experience make up for their “red flags” like the expensive price tag, maintenance schedule, KIDDIE ACADEMY Franchise Complaints, Kiddie Academy reviews, lawsuits, and extensive training process.
Also, many unhappy franchisee testimonies state that setting up a Kiddie Academy center and running effectively is challenging.
So, Is a Kiddie Academy Franchise an excellent franchise to invest in for 2021-22?
The Kiddie Academy, having headquarters in Maryland, started in 1981 and then created a franchise business focusing on the early education and STEM education of toddlers, teens, and young children. Their franchise mainly operates in Columbia, with over 210 locations over the 29 districts.
However, a closer look at the company’s finances and leadership reveal that it is in a precarious financial position and is reporting lower than expected gross margins.
With some extensive research and comparing the other education-providing brands in the market, we have found some valid reasons to be considered before buying a Kiddie Academy franchise.
Reasons Why Not To Buy Kiddies Franchise
Educational franchises are the fastest growing business model. However, this does not mean that you should jump into investing in an educational franchise without due diligence. Several drawbacks need to be considered before taking the next step. It is something that almost always happens with prospective entrepreneurs, but before you sign the dotted lines, try to spot the following caveats:
#1 The Initial investment for Kiddie Academy Franchise puts much load on the pocket at once.
Kiddie Academy requires a hefty initial investment of $250,000 for leasing and $500,000 if you are buying. Also, apart from the liquid capital, the company needs a Net worth of $ 750,000 for leasing and $ 1 million for purchasing the franchisee. Businesses with a recognizable brand name can seem intimidating to start, but this is often a result of the high upfront investment required. The Kiddie Academy franchise requires a significant initial investment, but its recognizable brand name has helped it grow to more than 200 locations in less than 15 years.
#2 Getting a Kiddie Academy franchise can be too much for any aspiring entrepreneur to handle.
Daycare franchises can be very profitable if you invest with professional help. However, it would help if you were prepared for the high startup costs and the ongoing expenses of the business. The initial investment for a tutoring franchise could reach $250,000 before you pay for marketing materials to keep students enrolled constantly or even start managing your daily operations. You should also factor in the cost of furniture, equipment, books, computers or tablets, office resources (such as internet connectivity), and much more.
Also, the initial investment is way too high than the average salary of people in the USA, which is only $ 51,916. Certainly a case of Low yields investment for the new franchise owner.
#3 The Kiddie Academy Franchise has been hit with multiple lawsuits in recent years.
Even when Kiddie Academy is projecting growth up to 25% in the next five years, the company has recently closed 12 locations in the last year. The main reason for such downfall has been increased competition and underperforming franchisees. It has also suffered from lawsuits from many of its franchisees claiming unfair assistance and support from headquarters.
#4 Owning a daycare business is a massive responsibility.
Starting a childcare or daycare franchise is not easy. In addition to building a thriving business, you must also abide by strict licensing, safety, and protocol requirements. It adds up to much work, even considering the high stakes of running a childcare service. Any safety risks uncovered in your childcare center can lead to dire consequences: from legal action and small fines to parents pulling their kids out of your program and never coming back.
Conclusion
Owning a daycare business is a massive responsibility. You have to ensure that everything from the environment you create for the children to your services gives parents peace of mind. The industry is heavily scrutinized by parents, particularly those with babies and toddlers under five years old.
Security and safety are crucial to a daycare’s success. So, before coming to a big decision of buying, one considers all the aspects, looks for their policies, researches the company, and most importantly, reads the FDD keenly before signing it.
A daycare franchise requires a great deal of time and effort to be successful. With the brand’s support, the franchisee needs to remain updated and agile to follow all protocols, including changes to safety and security standards in early learning. The brand provides access to its library of educational materials and excellent customer support — all that’s left for the franchisee is to run a successful business.
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