Questions to Ask Before Buying a Daycare - post

Buying a daycare can be a smart way to start or grow a child care business. You may be buying a #center that already has children, staff, #classrooms, and a name in the community.

But before you buy, it is important to ask the right questions.

A daycare is more than a business. It is a place where children must be safe, loved, and #supported. It also has rules, #costs, staff needs, licensing steps, and daily work.

Before you make a choice, take time to #learn about the center, the money, the building, the staff, and the families.

If you are thinking about buying or selling a child care business, fill out the Private Child Care Business Buyer/Seller Interest Form to share your goals and request more information.

Why Is the Daycare for Sale?

This is one of the first questions to ask.

A daycare owner may sell for many reasons. Some owners are ready to retire. Some want to move. Some may want to focus on another business. Others may be facing problems with money, staffing, or #enrollment.

Ask:

• Why is the owner selling?
• How long has the daycare been open?
• Has the business changed owners before?
• Is the seller willing to help during the change?
• Are there any problems I should know about?

The answer can help you understand the real story behind the sale.

Is the Daycare Licensed?

Child care licensing is very important. A daycare must follow state and local rules to operate.

Before buying a daycare center, ask for clear details about the license.

Ask:

• Is the child care license active?
• What ages can the center serve?
• What is the approved capacity?
• Are there any recent inspection reports?
• Were there any violations?
• Have all issues been corrected?
• Will the license transfer to a new owner?

In many states, a child care license may not transfer automatically. A new owner may need to apply for a new license or approval. This is why it is important to understand licensing before you buy.

The ChildCareEd Business Broker Program can help buyers think through questions about licensing, staffing, training, and operations. To get started, fill out the Private Child Care Business Buyer/Seller Interest Form.

How Many Children Are Enrolled?

Enrollment is a key part of a daycare business. The more steady the enrollment, the more steady the income may be.

Ask:

• How many children are enrolled now?
• What is the licensed capacity?
• Are classrooms full?
• Is there a waitlist?
• How many children attend full-time?
• How many children attend part-time?
• Do families usually stay long-term?
• Are there many families leaving soon?

A center may be licensed for 80 children but only have 35 enrolled. That does not always mean it is a bad business, but it does mean you need to understand why.

Low enrollment may also be a chance to grow if the location, staff, and systems are strong.

What Are the Income and Expenses?

A daycare may look busy, but you need to know if it makes money.

Ask to review the financial records. This may include income reports, tax records, payroll records, rent or mortgage costs, supply costs, and other bills.

Ask:

• How much money does the daycare make each month?
• What are the monthly expenses?
• What is the payroll cost?
• What is the rent or mortgage payment?
• Are there loans or debts?
• Are tuition payments current?
• Do families owe money?
• What is the yearly profit?

A profitable child care center should have clear records. If the numbers are not organized, you may need more help before making a decision.

What Is Included in the Sale?

Do not assume everything is included. Ask what comes with the daycare business.

Ask:

• Is the building included?
• Is it a lease or property purchase?
• Are classroom materials included?
• Are toys, furniture, cribs, and supplies included?
• Is the business name included?
• Is the phone number included?
• Is the website included?
• Are social media pages included?
• Are vans or buses included?

These details #matter. They can affect the value of the business and the cost to run it after the sale.

What Is the Condition of the Building?

The building must be safe for children and staff. Repairs can be expensive, so walk through the center carefully.

Look at:

• Classrooms
• Bathrooms
• Kitchen or food prep areas
• Office space
• Playground
• Parking area
• Entry doors
• Fire exits
• Heating and cooling
• Plumbing
• Roof and walls

Ask:

• Are repairs needed?
• Has the building passed fire inspection?
• Are there safety issues?
• Is the #playground safe?
• Is the space approved for child care use?

A safe, clean, and welcoming building can help families feel good about the #program.

Will the Staff Stay?

Teachers and caregivers are a big part of the daycare’s value. Families often stay because they #trust the staff.

Ask:

• How many staff members work there?
• What are their roles?
• Are they qualified?
• Are training records complete?
• How long have they worked there?
• Do they plan to stay after the sale?
• What are their pay rates?
• Are there staffing problems?

If many staff members leave after the sale, the new owner may have a hard time keeping the program stable.

Before buying a daycare, it is smart to learn about staffing and training needs. For private support, fill out the Private Child Care Business Buyer/Seller Interest Form and ask how ChildCareEd can help.

What Do Families Think About the Program?

A daycare’s reputation matters. Buyers should learn how families feel about the center.

Ask:

• Are #parents #happy?
• Are there online reviews?
• How does the center handle complaints?
• Are there strong family relationships?
• Does the center get referrals?
• Is there a parent handbook?
• How does the center communicate with families?

A good reputation can help keep enrollment strong. A poor reputation may take time and work to repair.

Are the Daily Systems Organized?

A daycare needs strong systems to run well. Good systems help the owner, director, #teachers, children, and families.

Ask about systems for:

• Enrollment
• Billing
• Parent communication
• Staff schedules
• Lesson #plans
• Cleaning
• Meals
• Child records
• Staff files
• Emergency plans
• Training records

If systems are clear, the change in ownership may be smoother.

Is There Room to Grow?

Many buyers want a daycare that can grow over time.

Ask:

• Can enrollment increase?
• Can tuition rates be updated?
• Can more age groups be served?
• Can the center add summer camp?
• Can before and after school care be added?
• Is there space for more classrooms?
• Is there demand for child care in the area?

A daycare with growth potential may be a strong business opportunity.

Get Support Before You Buy

Buying a daycare is a major choice. You should not feel rushed. Take time to ask questions, review records, visit the center, and understand the child care licensing process.

The ChildCareEd Business Broker Program helps child care buyers, sellers, and future providers explore their next steps with trusted industry guidance.

Led by Hwaida Hassanein, an experienced child care owner and founder of ChildCareEd, this private program supports people who want to buy, sell, open, or grow a child care business.

Take the Next Step

Before you buy a daycare, make sure you have answers.

A strong daycare business should have clear records, safe spaces, steady enrollment, trained staff, and strong systems. The right questions can help you make a better choice.

Ready to learn more?   

Fill out the Private Child Care Business Buyer/Seller Interest Form today to share your goals, request more information, and explore your next step with ChildCareEd’s trusted child care business guidance.