Many people are exceptionally skilled with caring for, and educating, children. As such, their talents and gifts are needed within our communities to provide excellent care for our young children. Successfully purchasing and operating a childcare center can be relatively easy, provided that the buyer has done their research and is well versed in the process of procuring a child care business.

First it is important to determine what type of center you would like to pursue
ownership of:

  1. Is your primary interest in creating an individual center?Would you prefer to buy a franchise with an already well known company?
  2. Are you interested in purchasing a center that is already successfully running and profitable?

Your next steps will be dependent upon the type of ownership you choose . If you want to create your own center, you will need to begin by finding the right location. In assessing the most advantageous location for your new center, you will want to consider the ease of access from main roads and thorough fares. You will also need to undertake the proper building inspections to make ensure that the premises is both appropriate for your commercial needs and is fir for the purposes of running a childcare center.

If your goal is to purchase an existing center, you will need to review their current business dealings and profit statements to confirm that the business is viable. In this situation you would want to confirm the number of students enrolled, the cost of doing business and the expenses of maintaining or adding to your professional staff.

Purchasing a franchise is another manner in which the dream of owning and operating a childcare center can be realized. When embarking on purchasing a franchise, there are several considerations to be reviewed.

  • How all compliance and legal regulations will be kept up to date and implemented on a regular basis
  • Who will be responsible for the continued licensure of the business
  •  The division of responsibility regarding the ongoing marketing of the business
  • It is important to find a franchise platform that is compatible with the type of center you are interested in running; including such issues as their education model and discipline philosophy

Once you have determined the type of ownership, you will need to consider the rules and regulations relevant to the running of a childcare center. This means you will need to look at compliance with national laws and regulations, proper teaching credentials for yourself and your staff, adequate and careful background checks to assure that all staff are suitable for working with children, and the necessary business insurances.

You will then need to turn your mind to the practical matter of your childcare center’s financial position. It is important to ascertain at the very start of your venture the following;

    • Do you have enough capital to invest in creating, purchasing or franchising a childcare business?
    • Will you have enough enrollment to support the salaries of the necessary staff?
    • How much will full insurance coverage cost per month for both employees and children?
    • Day to day expenses including but not limited to; classroom supplies, laundry and cleaning services for the center, replacement or repair of classroom furniture, funds for the purchase of new educational toys, games and small electronics?

Finally, you will need to determine the type of childcare center services you would
like to provide. There are several options available. Some of these include;

    • Full day care facility which allows for working parents to drop their children off early in the morning until after the close of business
    • Family day care which can include providing services in your own home or at the home of your clients
    • Preschool services which are not necessarily full time but can include both kindergarten services or two and three days per week programs
    • Occasional care services which allows parents greater flexibility and use for particular circumstances
    • After school services for children who are attending a full day of school but are in need of a safe place for their after school hours

With each of these options it is important that you honestly assess your interests and abilities in order to best choose the option that works with your strengths and gives you a competitive edge. All options require compliance with the national laws, rules and regulations of NSW and Australia, and careful research and consulting with a legal professional is highly advised. In doing both your own personal research and in seeking the proper legal advice, your dream of owning a childcare center can become your reality.


For further information or inquiries, please contact the offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 780 770.