Preschool Franchise: Own A Preschool Setup Or Buy An Already Existing One?

The education sector is one of the best sectors to invest in, both for the owner and the education seekers. Talking about preschools, they are the first educational need any parent invests in. Preschools are the first professional educational environment a child goes to and hence are selected the best by parents of such aged kids.

Preschool franchises can both be a start-up or can be bought by an already-settled owner. When invested in a start-up, preschools can be a beneficial choice for the entrepreneur, on the other hand when buying an already existing franchise it’s considered a smart choice.

Discussing the advantages and disadvantages of both the above-mentioned cases.

Preschool setup: A whole new franchise

Source: Education week


1. Being your own boss

Being your own boss is like a dream for almost every person, and settling your franchise lets you do exactly that. There is no one other than you to make rules, make the payment and income restriction, it is all on you and your ethics.

2. It lets you be creative

Setting up a preschool is a work of art. The set-up needs all your creativity to bloom in that particular place, for both the parents and the newbies to get attracted to your educational place.

3. There are no income limits

If there’s profit, it’s all yours and if there’s loss it’s yours as well. No one is responsible for the low paycheck you get or the loss company might face, it’s all on you.

4. It can be your contribution to the literate world

The need for basic education and literacy in today’s world is quite evident, contributing to the most basic part of human’s educational life can be your contribution to their and the country’s literacy rates. It all starts from small.


1. It’ll take time

Starting from basic and zero always takes time to get the name and fame. Hence, being patient will work for you.

2. Investment will be all yours

As said above, all the profit and loss will be yours and simultaneously the investment is yours as well.

3. Handling multiple children altogether

Handling preschool setups might be chaotic for anyone, and starting up a whole new franchise might be more chaotic as there are fewer or no pre-experienced ones, which is not the case in buying a franchise.

Buying An existing Preschool Franchise

Source: GD Goenka


1. The name is already settled and hence fewer efforts in the beginning

When you buy a franchise, you do not need to put in the effort to build the name required for the clients/parents to get attracted to your franchise. The credibility is already settled and the consumer of your service knows where the franchise stands.

2. The investment amount is cut short

You don’t need to invest in settling up each penny to set up as the franchise might already be fulfilled enough to get more branches by their earned profit. Hence the investment will only be added when setting up the environment of your place to be an educational institution.

3. The loss probability is at a loss

The less you invest from your side the less is the risk of being at a great loss, the same goes here.

4. Trained supporters available

People from other branches of the franchise all come up together to form a community again at a new place. Hence there you will have a whole community to support you settle up quickly.


1. No new venture or creativity

Your doors to creativity close if you work under an already existing and settled environment, their creative needs are already fulfilled and there is no other room for new creations to enter as there will be a large-scale implementation of any new idea.

2. Regulated costs

Every cost, profit, loss, and income is regulated by the main owner of the preschool franchise and hence it will be a different management game for you to get checked by the owner. At the end of the day, you’ll have to check with the owner to pay them the fees, income, profits, and everything that’s in your hand, and the distribution will be up to them.

The final decision will all be yours whether a new preschool setup or buying an existing preschool franchise. Wishing you all the best for your new ventures!

Article by: Varnika Jain

Also Read: Small Business

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