Your Due Diligence Checklist When Buying a Franchise Preschool

A preschool can be a lucrative business venture if you do it right. Besides making a profit, you get to be part of a noble endeavor of setting the foundation for future generations. Buying an existing preschool is one way you can be part of that. A quick search for daycare centers for sale will show you the numerous options out there.

Picking the best acquisition, however, takes work. You have to conduct due diligence to ensure the investment is worth it. What should you prioritize? The following are the most crucial factors.

The Type of Preschool Business

Childcare operations are not all the same, and if you are considering getting one, you should know what the best option is. Your goals will determine the right choice. Are you entering a new market, expanding your current business, or getting into the industry for the first time?

Buying into a childcare franchise is one way to go. You can easily find franchisors available in various locations. A franchise gives you the option of getting an existing operation or building one from scratch. The autonomy of setting up an educational center that meets your goals is appealing. However, an established business saves time and effort. When making this decision, consider the franchisor’s reputation because it determines the brand’s marketability.

Licensing Requirements

Learn the licenses and certificates required to run a preschool. A business permit is mandatory for any operation. Find out about other state-issued licenses necessary for your institution. Even if you hold a license for another childcare facility, you still must apply for one when acquiring a new venture. Note that the requirements and fees vary from one state to the next. Some of the areas considered in childcare regulation are building safety, the level of nutrition provided, and childcare program training. The National Database of Child Care Regulations is a useful resource to leverage when searching for information.


As with any other business, a preschool relies heavily on its location to be successful. So, when comparing childcare centers for sale, consider where they are situated. Competition is one factor that location influences. An institution in an area with many daycare services faces a lot of competition. The community around the center matters as well. If you want a business that feels like part of the community, then you have to pick one that sits smack in the heart of the neighborhood. The best location provides a conducive environment for learning, playing, and other activities. Children should be comfortable in the school. Find out if the place you intend to invest in offers natural light, security, and serene surroundings.

Standards of the Facilities

Never purchase a preschool without checking out the facilities to ensure they satisfy the necessary standards. Different states have varying regulations, covering everything from the space size to the plumbing. Therefore, you must conduct a site visit of a potential acquisition to evaluate the building standards. Learn the state-specific rules beforehand and have a checklist.

Buying a daycare center is a big decision, and you should make certain you are doing everything right. So, take the time to research the most critical elements, like the location, regulation, and licensing requirements, before investing. Check out Celebree Schools for a choice of franchise preschool locations for sale.