If you’re looking for a franchise opportunity that combines purpose with profit, child care might be the perfect fit. Child care franchise concepts are consistently ranked among the most profitable franchises, and it’s easy to see why.
According to Grand View Research, the U.S. child care market is projected to reach $109.88 billion by 2033, growing at a 6.02% CAGR from 2025 to 2033. The demand is strong, and when you choose the right brand, like Ivy Kids Early Learning Center, you get the support you need to succeed.
The purpose runs deep, too. Economist James Heckman’s research found that high-quality early childhood programs serving disadvantaged children delivered about a 13% annual return to society.
Why Demand for Child Care Keeps Growing
In 2024, 68.3% of mothers with children under age 6 were in the labor force, per the U.S. Bureau of Labor Statistics. That means there’s a greater need for dependable child care while parents are at work. But parents want more than just a babysitter during their work day; they’re looking for a nurturing environment that can also support their child’s growth and learning.
Starting a daycare franchise with a brand like Ivy Kids is a great solution for these families.
Our centers offer both supervision and access to high-quality early childhood education from a young age. One of the biggest reasons families prefer our schools over others in their communities is because of our holistic approach. Children receive access to classroom learning, outdoor enrichment like gardening, healthy meals prepared fresh on-site, and exposure to educational opportunities like learning second languages.
The supply side makes the case even clearer. The Center for American Progress reports that nearly half of US children ages 5 and under live in a licensed child care desert. In those areas, demand for care outpaces available licensed slots by roughly 3-to-1.
Public assistance data points the same way. By late 2025, the National Women’s Law Center found more than 400,000 children on state waiting lists for federally funded child care assistance. That total had more than tripled from early 2024 to late 2025, and it counts publicly subsidized assistance rather than all demand.
Prices reflect the same imbalance. Child Care Aware of America put the national average price of child care at $13,128 in 2024. This is a blended national average, so it is not a ceiling.
Prices climbed 29% between 2020 and 2024, versus 22% for overall inflation. For a well-run center, these gaps mean families are already searching, which supports strong enrollment and healthy pricing.
Why Child Care Is the Most Profitable Education Franchise Model
We seek candidates who are as passionate about education as we are. But, while passion is important, so is a strong bottom line, and child care ranks among the most profitable education franchise options for good reason.
A major advantage of owning a child care franchise is the tuition-based model. Unlike businesses that rely on one-time purchases or seasonal sales, child care centers earn recurring monthly tuition. Multi-year enrollment, as children progress from infant care through pre-kindergarten, creates a predictable revenue stream that lets owners plan ahead and scale with confidence. A successful franchise grows with the families in its neighborhood.
The initial investment reflects that opportunity, with three paths designed to fit different budgets and goals.
Families count on reliable child care as an everyday necessity, which gives the model real staying power. U.S. child care revenue recovered to 26% above prepandemic levels by the third quarter of 2023, the Committee for Economic Development of The Conference Board reported.
How Child Care Compares to Other Education Franchises
Child care also stands apart from other education franchises on market scale. Grand View Research valued the U.S. child care market at about $65 billion in 2024. By comparison, IBISWorld put its “Tutoring and Driving Schools” category at roughly $18.8 billion in 2024.
That IBISWorld category bundles tutoring together with driving schools, so it’s not a tutoring-only figure. A direct profitability comparison between the two is not available from public data.
The revenue rhythm differs, too. Many education franchises, such as tutoring and enrichment programs, run on seasonal or per-session demand. Child care earns daily, year-round enrollment that produces steadier recurring revenue.
Franchise-sector forecasts back up the momentum. The International Franchise Association’s 2026 Franchising Economic Outlook projects child services franchises among the fastest-growing franchise industries at 3.2% year over year. Its “child services” category is broader than child care, since it includes education, youth fitness, tutoring, and enrichment.
What It Costs to Open an Ivy Kids Franchise
Ivy Kids offers two investment paths so you can match your budget to your goals:
- A long-term lease option starting at $400,000 in liquid capital.
- An ownership model with a center of about 10,570 square feet and $700,000 in required liquid capital.
The franchise fee is $125,000, and qualifying veterans receive a $30,000 discount off the initial franchise fee through the VetFran program. Your investment covers the essentials of opening and running a center:
- The initial franchise and site-selection fee.
- Development and construction.
- Initial marketing and six months of working capital.
- Signage, insurance, and technology.
- Supplies and furnishings.
Need additional information? You can review a more expansive breakdown of the daycare franchise cost before you commit and invest in a franchise.
Why Ivy Kids Stands Out
Franchise Business Review nominated us as one of the top franchises to own for more reasons than one. At Ivy Kids, we’ve taken everything that works in the child care business and built a better system around it.
Our proprietary MultiPrep curriculum is built on Harvard professor Howard Gardner’s theory of multiple intelligences. It develops eight areas of intelligence so each child learns in the way that suits them, which is one reason why families choose Ivy Kids.
All our facilities are designed to encourage creativity and comfortable learning. They also prioritize children’s safety and parents’ peace of mind with our high-end security systems.
Ivy Kids has more than 20 years operating its own learning centers, and that experience informs how we train and support franchisees. We’ve made our proven franchise model replicable, so we can reach more families across the US who need reliable, quality education for their kids.
Our franchisees are fully supported by our expert corporate team from the moment they join us, and we provide ongoing support throughout their franchise journey.
Joining Ivy Kids means becoming part of a brand deeply committed to making a positive impact on families. You also receive the support to achieve your business goals along the way.
Frequently Asked Questions
Are Education Franchises Profitable?
Education franchises benefit from a tuition-based model that brings in recurring monthly revenue. Because children often stay enrolled for years, from infant care through pre-kindergarten, owners can plan ahead with confidence. Families also treat quality child care as an everyday necessity, and demand for early education continues to grow, which supports long-term stability.
How Much Does It Cost To Open an Ivy Kids Education Franchise?
Ivy Kids offers two investment paths, starting at $400,000 in liquid capital. Your total depends on which of the three paths you choose and your center’s location.
What Makes Child Care More Profitable Than Other Education Franchises?
Child care earns daily, year-round enrollment, while many tutoring and enrichment programs depend on seasonal or per-session demand. That recurring revenue tends to be steadier over the year. The child care market is also far larger by dollar value. A direct profitability comparison between the two is not available from public data.
Is There Still Demand To Open New Child Care Centers?
Yes. The Center for American Progress reports that nearly half of US children ages 5 and under live in a licensed child care desert. The National Women’s Law Center found more than 400,000 children on state waiting lists for publicly subsidized child care assistance by late 2025. That figure counts publicly subsidized assistance rather than all demand, and it still points to families searching for care.
Are Child Care Franchises Recession-Resistant?
Child care is an essential service for working families, which helps enrollment hold up when budgets tighten. The Committee for Economic Development of The Conference Board tracked the industry’s recovery. U.S. child care revenue reached 26% above prepandemic levels by the third quarter of 2023. That points to recovery resilience, though it does not make child care recession-proof.
Learn More Today
Grow one little mind at a time as an Ivy Kids franchise owner. Contact us today for more information on the Ivy Kids franchise opportunity.