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Children’s Franchises Keep on Growing

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The old adage in business that "People will always spend money on kids and pets" is as true today as ever, especially when it comes to franchises geared to children. We reviewed children’s franchise programs over the past three years. The growth in the number of locations was strong in spite of the "Great Recession". In addition, approximately 20% of children’s franchises started after 2008 with a number of them having been in business for more than 5 years. This can be considered an indication of just how popular this franchise segment is.

Here is how four major segments performed in number of locations from 2010 to 2012:

  • Children’s Exercise and Fitness -10%
  • Children’s Educational Services-5%
  • Children’s Enrichment Programs-11%
  • Children’s Tutoring Programs-5%

 

The increase in the number of locations for all children’s franchises averaged almost 8% growth over the past three years!

Why Children’s Franchises Have Strong Growth:

  • With certain exceptions the typical investment for a children’s franchise is under 150K.
  • The market for services is stable.
  • Demand for services is not sensitive to economic downturns.
  • School systems continue to reduce services and programs for students. Examples include athletic, fitness programs, after school enrichment classes and tutoring services.
  • Most parents will make financial sacrifices for the benefit of their children.
  • Services like after school tutoring are necessary for some children.
  • Children and their parents will serve as referral sources simply by word of mouth.
  • There are a variety of franchises to choose from.
  • Children’s franchise ownership appeals to a broad range of prospects ranging from retired teachers to moms at home to sports orientated men and women.

The children’s franchise sector remains healthy and vibrant and will continue to perform well. A steady demand for services, coupled with the desire of parents to spend on behalf of their children provides a stable foundation for these franchises.

 

 

© 2013 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

 

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