How Much Does it Cost to Open a Preschool?

Deciding to open your own preschool franchise can be an exciting time. If you love children and love education, then this is a great industry to get into. As millennials continue to start families and join the workforce, the demand will only soar. As a franchise owner, you will serve an important function in your community by providing care and attention to children as well as early education. Opening a child care franchise can be exciting and overwhelming, especially if you have never owned a business before. Owning your own business is a rewarding and thrilling experience for those willing to take the risk. In this post, we’ll help explain the main costs you’ll need to invest when starting your own child care business. 

Franchise Investment and Cost

Neighborhood Kids are excited to announce for the first time that we are offering franchise opportunities to potential investors. The first thing any serious investor must consider is how much money are you willing to put into it. We provide flexible options for potential franchisees that allow practically anyone to invest in our business model. Below we have outlined a handy guide and summary of the initial investment costs of starting a franchise with Neighborhood Kids. 

Startup Investment

When starting your own preschool franchise you should be aware of initial investment costs. The amount you need to invest depends on your lease agreement, a permanent lease build-out, or whether you are operating in a pre-existing preschool space. 

If you are choosing your own permanent location then you have to factor in rent, taxes, and utilities. This can cost between $2,326,000 to $3,701,459. Investment into a preexisting preschool space can range from $419,000 to $777,429

At Neighborhood Kids Schools we have partnerships with established local churches that provide faith-based early childhood education. This provides potential franchise owners with a more economical option. 

Initial Franchise Fee

At Neighborhood Kids, we understand that we are only as good as our weakest location. That’s why we provide training and support to help your franchise succeed. By helping your franchise succeed the company as a whole succeeds. The initial franchise fee is a one-time, flat fee that a prospective franchisee pays for the rights to acquire and develop a Neighborhood Kids franchise. Many other child care franchises charge hundreds of thousands of dollars for franchise fees. Our initial franchise fee is a flat $70,000 which includes onboarding and training programs to help you succeed.

Ongoing Royalty

The royalty fee is an ongoing fee that is usually paid by franchisees during the length of the franchise agreement. In return, the franchisee gets to use the franchisor’s trademark and support systems. The royalty fee also helps to offset expenses related to developing the franchise, new technologies, products, and services. 

At Neighborhood Kids our monthly royalty fee is 7% of gross sales.

Brand Development Fund

At Neighborhood Kids we charge a monthly brand development fund fee of 1% of gross sales. The purpose of our brand development fund is to boost local awareness about the national brand through physical and digital marketing campaigns. 

Grand Opening

Your grand opening is your opportunity to show the community that you are here, what types of services you offer, your values, and a chance for potential customers to tour the facility and see the curriculum. Our grand opening fees range from $45,000 to $50,000. This will include everything you need to open with a bang and make a great first impression on the community. 

Partner With Neighborhood Kids

Starting a successful business child care franchise takes hard work, determination, and investment. When you decide to partner with Neighborhood Kids, we provide Franchise Owners with on-site training and ongoing support and guidance to help you develop and grow your business while becoming an active part of your community. Contact Neighborhood Kids today for more information on how you can get started with your own franchise. 

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