Nurseries play a key role in the childcare sector in the UK. According to recent figures, children's nurseries are worth an estimated £4 billion per annum. These figures have been on the rise since the mid 1990s, with most families in Britain relying on more than one income to support their families. Demand for high-quality nurseries has increased and the childcare sector has adapted to meet this demand. Nursery franchises are proving to be very popular in the British market. Nurseries are registered with Ofsted and can then be run by private individuals, community groups, organisations or employers.
Owning a nursery franchise means that you are joining a business sector that has proven to be both recession and Brexit-proof. There has been a steady increase in the number of parents registering their child for childcare and this looks set to continue.
What Is a Franchising Business Model
When deciding whether buying achildren's franchise is the right move for you, you should understand the responsibilities and rights of owning one. Franchises basically blend the attributes of a corporation and sole proprietorship.
The franchisor creates a trade name, builds a business system, and develops a reputation. Then, they sell the rights to profit from using the name and company methods to franchisees. The franchisees usually pay an initial sum and then pay ongoing royalties to continue using them.
Brand recognition and the company's reputation are the franchisor's most valuable assets. Clients choose which business to support based on their feelings and experience with the brand, which is very helpful for new franchises.
Franchising FAQs
Over the previous decades, the franchise industry has been consistently expanding in the UK. With the added support from a parent company that has a secure and proven financial history, franchising offers a safe transition to self-employment.
Franchising reduces the financial risks associated with start-ups, and when times are lean, they have a better chance of surviving. They often prosper when a new independent business might struggle.
By purchasing a franchise, you will gain a trusted brand with a well-deserved reputation, which is what you want when opening a nursery.
Franchising Vs Independent
Franchises have less trouble attracting start-up capital from banks and other moneylenders. Independent businesses often have difficulty obtaining reasonable borrowing rates. This has the potential to jeopardise their ability to succeed from the beginning.
With a proven track record, franchises can easily demonstrate that the business will be viable and sustainable. Other new companies have little evidence that their business has the potential for success. Therefore, they often find themselves at financial risk.
In fact, a business's first two years are precarious, and more than half of independent UK start-ups fail during that time. This makes investing in a new business a significant financial risk for banks and other potential lenders.
Franchising, however, offers the stability to withstand the everyday struggles independent companies experience. Since the company is grounded in a proven economic model, Moneylenders and banks are more comfortable offering financial backing to a franchise.
In nurseries, with the high costs of the premises, staffing, marketing, and safety compliance, an independent business would have considerable difficulty setting up without the support of an established franchise.
If you are wanting to get started in the childcare industry, you could do no better than embracing a recognised brand with an established reputation for reliability.
What to Look for When Franchising
When you are considering investing in a nursery franchise, you want to compare the types of initial and ongoing support the franchisor offers. Some of the typical services provided include:
- A recognised brand name
- Assistance choosing and developing the site of the franchise
- Brand reputation
- Business support
- Home office and support in the field
- Initial and continuing advertising and marketing strategy
- Management training for you and your team
- Operating manuals
- Standards and quality control by the franchisor
The franchisee independently owns the business and is solely responsible for everyday management decisions. Whether the nursery is a success or failure is based entirely on your ability to run the business.
Setting Up a Nursery Franchise
There are many aspects that are unique to nursery franchises. Here are some interesting facts about the nursery franchise industry:
- There are an estimated 23,500 day care nurseries employing over 188,000 people and offering in excess of 1 million childcare places.
- The nursery sector outperforms the overall childcare marketplace, with a five-year growth rate of 3.9%. This is great news for anyone looking to start a nursery franchise.
- Running a nursery franchise requires childcare skills, knowledge of health and safety regulations, and the ability to manage business administration such as financial planning.
- Your nursery franchise must be registered with Ofsted but before this, you need to do a DBS check and to fill out a health declaration booklet, which requires you to list any health problems you have.
- Anyone running a nursery franchise needs to ensure that they are legally protected with the correct insurance in place. This is something that your franchisor can support you with.
With the additional issues that a nursery start-up faces, it is essential that would-be entrepreneurs carefully consider the options before choosing a franchisor. You want one that offers the support that you will require to open and manage your business successfully.
Buying a Nursery Franchise
A person might purchase a nursery franchise for a variety of reasons. There are several ways to grow your business by adding staff members, expanding services, or opening more locations. If you are enthusiastic about owning your own business and caring for the beloved children of others, this may be the right business for you.
Explore a wide and varied selection of nursery franchises, and bring a smile to the face of many children and their loving parents.
With a lucrative, existing, and necessary business, start the journey toward a more fulfilling future. Contact our plethora of nursery franchisors right here and instantly discover more about the ideal franchise opportunity for your life. The options are endless.