Children's Services Remains a Hot Franchise Category

An article in Entrepreneur Magazine by Jason Daley explains the reasons why the children's services franchise sector continues to enjoy sustained growth.

This will surprise zero people with school-age kids: Budget cuts are everywhere. Many districts have lost physical education, arts and music programs, as well as pre-K and after-school programs. “The number one factor in the rise of children’s franchising is that a lot of school systems have scaled back services since the Great Recession and even before that,” Teixeira says. “These franchises try to fill those gaps.”

The reduction in after school services creates a demand that entrepreneurs intend to fill. One teacher started a company that's now franchised:

Erika Lupo, an English teacher with a theater background, decided to go into business. Disappointed that her school district had no theater program, she’d regularly incorporate acting into her classes -- say, by having kids re-create the stories they read. But in 2003, she wanted to do more. She quit teaching and opened a studio in Sparta, N.J., called Acting-A-Part, offering semester-long after-school programs in musicals, plays, commercial and film production and script writing.

Kid's Franchises continue to grow

“Most of these brands are very high-­quality with not a lot of turnover,” says Ed Teixeira, who has been in the franchising industry for 35 years and is COO of the research firm The kids segment is one of the fastest-growing in franchising, increasing by 12.1 percent each year between 2010 and 2014, according to his most recent data. 

The Trend Will Continue

Several factors have created this boom. Changes in education and school demographics created new opportunities for businesses, and cultural shifts in parenting are providing a steady stream of customers. And with the latest generation of bambinos poised to be the largest in U.S. history, the demand for children’s services will remain strong.