How Much Does It Cost to Start a Childcare or Early Learning Franchise in the USA?

In 2025, the childcare and early education industry is not only booming but essential. With over 65% of U.S. households made up of dual-income families, access to high-quality early childhood education is in high demand. As a result, opening a childcare or early learning franchise has become an increasingly attractive investment—offering both purpose and profit.

But how much does it actually cost to open a preschool, daycare, or early education franchise in the USA today?

This detailed 3,000-word guide covers:

U.S. childcare market overview (2025)
Types of early education franchises
Startup cost breakdown
Top franchise brands and their models
Expected revenue and profitability
Qualifications and experience needed
Licensing and compliance requirements
Financing and funding options
Industry risks and emerging trends
Final thoughts for investors

1. U.S. Childcare Market Overview (2025)

Market Size: $79 billion (2025), projected to hit $97B by 2028
Key Drivers:
- Dual-income and single-parent households
- Emphasis on early childhood development
- Rising cost of independent childcare
- Preference for accredited, structured environments

Top Service Models

Full-day daycare (infants through pre-K)
Preschool/early learning (3–5 years)
After-school and enrichment programs
Montessori and play-based programs

2. Types of Early Learning Franchise Models

Traditional Daycare: Full-service care for infants through age 5
Montessori & Academic: Structured education through hands-on learning
Enrichment-Based: STEM, language, or creative learning centers
Faith-Based: Religious curriculum with licensed childcare services
Hybrid Centers: Combine daycare, preschool, and afterschool programs

3. Startup Costs Breakdown

Expense Category	Estimated Range
Franchise Fee	$40,000 – $80,000
Real Estate/Leasehold	$200,000 – $700,000
Buildout & Renovation	$150,000 – $500,000
Licensing & Permits	$10,000 – $25,000
Furniture & Equipment	$50,000 – $150,000
Curriculum & Training	$10,000 – $50,000
Staff Hiring & Onboarding	$25,000 – $75,000
Technology & Security	$10,000 – $30,000
Working Capital	$50,000 – $150,000
Total Investment Range	$500,000 – $1.8M+

Note: Urban areas and Montessori models generally have higher buildout costs.

4. Top Childcare Franchise Brands (2025)

1. The Learning Experience (TLE)

Startup Cost: $550K – $800K
Franchise Fee: $60,000
Royalty: 7% + 2% marketing
USP: Proprietary L.E.A.P. curriculum, bright facilities, tech-forward

2. Primrose Schools

Startup Cost: $637K – $6.4M (varies by model)
Franchise Fee: $80,000
Royalty: 7% + 2% marketing
USP: Balanced Learning® approach, real estate assistance

3. Kiddie Academy

Startup Cost: $450K – $1.2M
Franchise Fee: $145,000 (includes training & support)
Royalty: 7% + national marketing
USP: STEM-focused curriculum, high brand awareness

4. Goddard School

Startup Cost: $698K – $1.2M
Franchise Fee: $135,000
Royalty: 7% + 1% advertising
USP: Play-based approach with academic results

5. Discovery Point

Startup Cost: $650K – $1.7M
Franchise Fee: $80,000
Royalty: 6% + 1% marketing
USP: Turnkey model with real estate development options

5. Revenue & Profitability Benchmarks

Brand	Avg Annual Revenue	Net Margin	Breakeven Period
The Learning Experience	$1M – $1.8M	20–25%	24–36 months
Primrose Schools	$2M – $4M	22–30%	36–48 months
Kiddie Academy	$1M – $2M	18–25%	30–42 months
Goddard School	$1.2M – $2.5M	18–28%	30–36 months
Discovery Point	$1M – $1.8M	20–26%	24–36 months

6. Franchisee Qualifications

Net Worth: $500K – $1.5M
Liquid Capital: $150K – $500K
Background: Education or childcare helpful but not required
Ideal Traits:
- Passion for child development
- Business and leadership skills
- Commitment to licensing and compliance

7. Licensing & Regulatory Requirements

State Childcare License: Required in all 50 states
Local Permits: Zoning, occupancy, health inspections
Background Checks: Mandatory for all owners and staff
Staffing Ratios: Varies by age group and state
Ongoing Training: Many states mandate continuing education hours

8. Funding & Financing Options

SBA 7(a) Loans: Popular for franchise projects
Real Estate Loans: For land and building development (esp. Primrose/Discovery Point)
Franchisor Lenders: Many brands have preferred lending partners
ROBS Plans: Roll over retirement savings (401k) to invest
Veteran Incentives: Franchise fee discounts available for veterans

9. Industry Risks & Trends

Risks:

Labor shortages (qualified teachers, aides)
High upfront real estate and buildout costs
Regulatory compliance varies by state
Sensitivity to local demographics and income levels

Trends:

Emphasis on STEAM and language immersion
Technology integration: apps for updates, check-in, payments
Security-focused design (cameras, ID verification)
Parent satisfaction driving referral and retention rates

10. Final Thoughts

Opening a childcare or early learning franchise in 2025 can offer a profitable and fulfilling business path for those passionate about education, family, and long-term impact. With the right brand, location, and operational plan, your franchise can serve an essential community role while generating strong financial returns.

Before committing:

Visit 3–5 existing franchise units
Review the Franchise Disclosure Document (FDD)
Get clarity on staffing and licensing responsibilities
Understand the full buildout timeline and cost structure

If you’re looking to build a legacy business with purpose and proven systems, a childcare or early learning franchise is one of the most rewarding opportunities in today’s franchise landscape.