The Feel-Good Business Offers a Flexible Schedule and an In-Demand Service
For parents, a preschool is not just a place to drop off kids while they go to work. According to a 2022 Niche Survey, today’s parents look for convenience and diversity as well as qualified, caring teachers when deciding on a preschool. Building Kidz Worldwide preschool was designed by a parent looking to meet her child’s needs — medical, academic, social, emotional and cognitive.
Back in 2002, Building Kidz Worldwide founder Vineeta Bhandari faced a choice when her daughter was diagnosed with juvenile diabetes and her preschool couldn’t provide for her insulin needs during the day. Instead of trying to find a preschool that could do so, she chose to walk away from her successful career in corporate finance and open a preschool where she could personally ensure that all her daughter’s needs were met.
Today, Building Kidz Worldwide has a deep sense of social responsibility with strong business and curriculum differentiators, enabling franchisees to enjoy a business model with exceptional growth and industry-leading margins. Here, Building Kidz Worldwide co-founder and CRO Sanjay shares his insights about the award-winning preschool franchise.
How Does Building Kidz School Foster Diversity?
We are one of the fortunate few that doesn’t have to foster diversity. As early childhood education is often even a stronger priority in immigrant and other diverse communities than the country at large, and the fact that we are based in arguably the center of socioeconomic diversity in the U.S, a diverse climate is organic for us. Though we do have some male-led schools, we are significantly weighted towards female entrepreneurs. Our franchisees do not represent any single prominent racial, ethnic, cultural or religious background. Franchisees actively manage socioeconomic diversity by proactively engaging with local government entities that provide subsidy and other logistical help for economically disadvantaged individuals.
Describe the Building Kidz Business Model.
At its core, Building Kidz is a full-day preschool and childcare facility. All campuses provide services for children ages 2 through 6. One of the strong differentiation points of Building Kidz is the flexibility of our model, which allows for our franchisees to provide services for infants, toddlers and after-schoolers up until 12 years old as well. Many of our campuses provide the full breadth of our offering, while some find that their community is best served by focusing on just preschool-aged children.
What Sets Building Kidz Apart?
Building Kidz has several strong differentiators that put it in a class of its own (pardon the pun).
- Building Kidz the franchisor, with no impact to the franchisees, sets aside 25% of its profits to help underprivileged children across the U.S. and around the globe.
- Our model is extremely flexible; we allow for schools ranging from 50 – 200-plus children in capacity. This allows our franchisees to tailor their school to its community needs, and their investment to their own financial goals.
- We are the lowest entry point in our space. Investment in a preschool franchise typically starts in the high hundreds of thousands or low millions of dollars. Our range of $214,000 to $856,000 is significantly lower than virtually all the competitors.
- Our historical returns are unrivaled in the preschool industry and very hard to match for our investment level in any franchise system. Preschools, on average, return ~14% EBITDA margins. Building Kidz reported over 28% margins for mature schools in our most recent FDD. That was somewhat of an anomaly due to franchisee reinvestment as we were recovering from the worst of the pandemic. Historically, our margins have ranged between 31% and 34% for mature schools.
- We are recession-resistant, pandemic-hardened and Amazon-proof. Parents simply don’t cut expenses that are related to their children’s care and well-being if they have a choice. Also, if the pandemic taught us anything its that delivering education in a virtual environment is only an option of last resort, so our franchisees are not exposed to any current or reasonably foreseeable technological disruptors.
Why Building Kidz?
- Feel-Good Business: Franchisees who are awarded a Building Kidz franchise positively impact children’s lives every day.
- Proven Business Model: Building Kidz franchise owners enjoy a proven, successful and profitable business model.
- Experienced Leadership: The Building Kidz team successfully deployed the model in eight states spanning the country, and led their franchisees through the most trying time in business in recent history.
- Collaborative Environment: Not only do franchisees have the benefit of institutional knowledge and support, but they have the benefit of the Building Kidz family of franchise owners at their back.
- In-Demand Service: In the United States today, seven out of 10 homes with children have both parents working, and that number keeps climbing. The demand for day care, childcare, and preschools is skyrocketing with it, and in fact demand continues to outpace supply.
For more information about the Building Kidz School, visit https://www.buildingkidzschool.com/preschool-franchise-opportunity/.