Points to Consider When Buying a Franchise

A recent article in Franchising Magazine discussed four things to keep in mind when buying a franchise during COVID times. In the story, they called out four major considerations:

Focus on essential businesses
Get to know the people and processes
Investigate the franchisor’s response to crisis situations
Know your comfort level

These are all great points to keep in mind as you do your due diligence as part of your franchising journey. We also asked a couple of Kiddie Academy^® Educational Child Care leaders to react to the article and add any other points worthy of consideration.

“The demand for high-quality, educational child care is as strong now as ever before,” said Broc Silberzahn, Kiddie Academy Vice President for Franchise Development. He points out that none of our Academies had to close permanently due to financial hardship during the pandemic. “Now that we’re emerging from the pandemic, recovery has been strong, especially now with parents returning to their offices. That’s consistent with patterns we’ve seen in previous economic downturns. We’re fortunate to be in a very resilient business.”

Taking Note of a Resilient Industry

Many entrepreneurs recognized that as well. Broc noted that the company has continued to grow throughout the pandemic and projections remain strong for the remainder of this year. “In 2020, we opened 27 new Academies and signed 49 Franchise Agreements. This year we’re on pace to open another 30 Academies, including what will be our 300th, which we’re very excited about.”

Broc also said that all this provides a favorable view of our industry and company to lenders, a point echoed by our Vice President of Finance, Kevin Shaffer. “Interest rates are at historic low levels which is extremely favorable for new business development. The Small Business Administration has been very generous in offering borrower incentives and fee waivers to support and encourage new business development.”

Kevin says that potential Franchisees should approach their post-COVID investment in much the same way a parent considers selecting services for their child care needs. “Parents want their child to be safer, happier and better prepared.”

‘Safer’ for a Franchisee means selecting a franchise that has proven stability as measured by low closures, strong visibility of future revenues and a long customer life cycle. Kiddie Academy has all these attributes.
We tend to have ‘Happier’ Franchisees because we’re a brand that’s only open five days per week and Academies are closed nights and weekends, allowing for more family time and a better quality of life.
COVID has clearly demonstrated that Franchisees are ‘Better Prepared,’ with support we’ve provided to help Franchisees confidently provide a safe, healthy child care environment while they navigate changing market conditions, with support in understanding new regulations and available assistance from rapidly changing government programs.”

If you’d like to find out more about what makes a Kiddie Academy Educational Child Care franchise the right addition to your portfolio, contact us today. And, if you are awarded an opportunity to sign a Franchise Agreement before October 1, 2021, you are eligible for a special credit of $15,000 off Kiddie Academy Educational Child Care’s Initial Fee. Don’t miss out on this great chance to make a life-changing business decision.