When you have strong credit, your franchise's financial...
Children's Franchises in Canada: What to Ask Before You Leap
There are more than 10 million children in Canada today, according to Statistics Canada, and just about half of all parents in Canada use some form of child care for their kids.
Naturally, this has all added up to a largely healthy environment for child care and service businesses in Canada, with the day care industry alone generating $9 billion annually, according to IBISWorld (https://www.ibisworld.ca/industry-trends/market-research-reports/healthcare-social-assistance/day-care.html).
This data makes a good case for buying a children's franchise in Canada. However, as with any other type of franchise or business, there are risks involved in opening your own place. Before you decide to invest into a children's franchise, here are some questions that need to be answered.
What are the requirements?
All franchises have requirements for franchisees, and when you are dealing with children, there may be even more requirements involved. You might need specific licenses or certifications before you can operate your business, and your employees might have to meet these requirements, too. Know what you need and whether your franchisor can assist you when it comes to meeting these requirements.
What capital is needed?
Some businesses take longer to turn a profit than others, and a children's franchise often fits this bill because of the added costs involved in running these types of businesses. You'll need to know more than just the initial investment cost because you need to have enough capital on hand to get your business through until it starts turning a profit. Of course, your franchisor won't be able to provide exact totals, but they should be able to give you an estimate of how long their franchisees usually take to start generating a profit so you can be prepared.
What type of support is available?
Support is valuable in any franchise industry, and it becomes even more vital in a franchise involving children because of the rules, regulations and other factors at play. Find out what your franchisor offers in terms of of support outside the initial training. If, for example, you will need a specific license later, does the franchisor help with that? Discover what support level you can expect to receive from the signing of the agreement to your fifth year in business.
The children's care and service industries in Canada are only expected to continue growing. If you decide to become a part of this large and still-expanding sector, be sure to do your research before you decide on your new business.
For information about the different children's franchises available on our website visit the children's industry here.