Should I Consider a Child Care Franchise?
Discovery Point Blog
Should I Consider a Child Care Franchise?
As you assess your options for business ownership, one of the first things to do is take an in-depth look at the market size for the services you’ll provide. If you’ve been contemplating entering the child care industry, you’ll quickly find the market size for educational child care services is rapidly growing in the United States. Choosing to open a child care franchise will allow you to take advantage of the high demand for child care services without the added time, stress, and trial-and-error process of going it alone.
At Discovery Point, we’ve been a major player in the child care industry for decades. Our experience has taught us that when it comes to caring for children and promoting their education, the details matter.
We’ve created proprietary curriculum, built a custom design for comfortable and secure centers, and developed a unique methodology that encourages children to learn naturally through play and exploration.
We’re eager to play a part in meeting the skyrocketing need for high-quality educational child care services by partnering with entrepreneurs who are passionate about making a difference in their communities.
If you’re on the lookout for a rewarding business opportunity that offers plenty of flexibility and is poised to undergo extensive growth in the coming years, a Discovery Point child care franchise may be the right business endeavor for you.
Understanding the Market for Our Child Care Franchise Opportunities
Grand Review Research, a well-known market research and consulting company, has recently published a wealth of data regarding projected trends in the U.S. child care market size. According to the 2020 report, the U.S. child care market was valued at $54.3 billion in 2019 and is expected to continue growing. In fact, its projected compound annual growth rate from 2020 to 2027 is 3.9%, with a revenue forecast of $73.8 billion in 2027.
There are many factors behind this exceptional growth. For example, the rising number of working parents is likely driving much of the demand for child care. The Grand Review Research report cites a survey conducted by the Center for American Progress in 2016 stating that nearly 2 million parents made sacrifices in their careers due to issues with child care.
In the years since that survey, awareness of the connection between upward economic movement, parental employment, and access to reliable child care has become even more widespread. The COVID-19 pandemic especially has shed light on this issue. As a result, access to child care has become a hot topic in the national discussion.
This is reflected in the demand for early education and child care services. Around 1.4 million students were enrolled in pre-kindergarten in 2019. The early education and daycare segment accounted for a large proportion of the U.S. child care market share in that same year.
Specifically, organized care facilities rather than home-based care dominated the market with nearly three-quarters of the revenue share. This segment is also projected to experience the most rapid growth until at least the year 2027.
Current Challenges We Can Address
While organized care facilities are witnessing the most growth, this doesn’t mean home-based child care services are in decline. Child care in home-based settings is also anticipating a significant upward trend for the next few years. The main reason for this is at-home daycare is acting as a fill-in for the shortage of center-based child care options. This shows the demand for child care is sky high, and parents are using stop-gap measures to assuage their needs in the moment.
The quality of some child care services has also been reported as an issue in addition to the unavailability of slots. This suggests high-quality, educational child care services provided by reliable centers are the ultimate solution parents are looking for.
The ongoing pandemic has affected the vast majority of industries in the U.S., including child care. However, following a temporary shutdown in early 2020, many service providers have been able to resume operations and provide the services working parents desperately need.
Procare Solutions, a company that designs software for child care centers, reported that of the 61% of child care centers that closed in March, over 45% reopened by June. As of December 2020, only 27% of the company’s 30,000 clients remained closed. With many states grouping those in the child care industry among the first for the COVID-19 vaccine, this number has surely dropped. The US is currently on track to have all Americans eligible for vaccines by May 1 which should further reduce the number of closed centers over the next several months.
Are you looking to open a business that can help meet the rising demand for educational child care services? Consider becoming a part of our child care franchise! Call Discovery Point at 770-623-1140 today for details about the benefits we offer our franchisees.