Discovery Point Blog

October 14, 2021

Choose A Daycare Business with Real Estate Ownership

If you’ve recently determined that opening a daycare business is the right choice for your personal and professional goals, there are several more decisions you’ll face before making this dream a reality. One important decision that should not be overlooked in the planning process is whether you will own the building and property where your business is located or lease it from a developer. To answer this question, you can expect to do some in-depth real estate research before you take any other steps to get your business up and running. 

At Discovery Point, we have over three decades of experience in the child care industry, and we’re proud to work with our franchisees across the southeastern United States. Our experience has shown us how important it is for franchisees to have complete ownership of their center’s land and building. Doing so offers numerous benefits and opportunities both during the adventure of business ownership and when the time comes to bring the adventure to a close.

How Owning Real Estate Can Benefit Your Daycare Business

By taking the step to purchase property, you’re making a long-term investment. As real estate steadily increases in value over time, you can look forward to making a profit both on your business and on the eventual sale of the real estate. 

Rather than paying rent to a landlord in order to operate your business, you can put that money to use to build equity. You can then use this equity as potential leverage for future locations and, eventually, as the cornerstone of a profitable exit strategy when you choose to retire. 

Depending on your financial situation, you may even find that real estate ownership will enable you to benefit from certain tax deductions, such as the interest on mortgage payments or property taxes. Depreciation deductions could also contribute to significant savings, which is something lease holders miss out on.

The benefits of owning the real estate where your daycare business is located aren’t just financial in nature. There is also a certain intangible advantage that comes with owning your business property – security. 

You’ll have greater confidence in the future of your business knowing your property won’t be leased out by the landlord when your contract ends. You also won’t have to worry about rent escalations over time, which could otherwise lead to some particularly difficult decisions. Finally, as a real estate owner, you can avoid remodel restrictions and ensure your center’s building is specifically designed to not only be in brand alignment but also provide an optimal environment for the care and education of children.

How Discovery Point Helps Franchisees with the Real Estate Process

With decades of developmental experience under our belt, our professional team is well-versed in the ins and outs of purchasing real estate, constructing optimal daycare business locations, and maintaining these properties over time. Over the years, we have watched as our franchisees have experienced the financial benefits of owning real estate as well as the freedom and security that site ownership brings. 

Along the way, we have developed a straightforward process for supporting franchisees with site selection, making real estate purchases, and constructing a Discovery Point center from the ground up.

We begin by helping franchisees choose a site that will not only bring families to their daycare business but will also remain a convenient location for them throughout their children’s early years. There are no shortcuts to be taken during this process; we conduct in-depth research and analyze potential sites for an extended period of time to ensure no detail is overlooked in this important decision. 

For example, we take into account property size and zoning, the accessibility and visibility of the location, its distance from elementary schools, and a demographic study of the population and average household income of the area. We also do a full analysis of nearby competitors to give franchisees the best chance of success. 

While site selection is managed by our expert real estate team, franchisees always have the final say in where they will open their business. This means Discovery Point owners have the opportunity to not only benefit from full site ownership but also take advantage of our high level of real estate expertise. 

Learn more about choosing a daycare business that allows you to reap the rewards of real estate ownership. Get in touch with the franchising team at Discovery Point today by calling 770-623-1140.