Child Education and Developmental Center Franchises in the US Industry Market Research Report from IBISWorld Has Been Updated

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Increased employment and rising disposable incomes in the past five years have bolstered revenue and profitability for child education center franchises. For these reasons, industry research firm IBISWorld has updated a report on the Child Education and Developmental Center Franchises industry in its growing industry report collection.

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The long-term shift in women's workforce participation has particularly fueled demand for the industry.

The Child Education and Developmental Center Franchises industry has grown consistently during the past decade, and is poised to expand further as research increasingly supports the benefits of early childhood education and more parents return to work. Increased interest in early education and strong marketing touting its benefits have enabled child education and development center franchises to outperform the Day Care industry (IBISWorld report 62441) generally over the past five years, even as the economy has begun to recover. Child care costs have risen and the industry’s target market has expanded, paving the way for sustained growth.

According to the latest information from the US Census Bureau, there are currently 24.7 million children under the age of six, of whom 15.1 million require child care. According to IBISWorld Industry Analyst Sally Lerman, “The long-term shift in women's workforce participation has particularly fueled demand for the industry.” Industry profitability also improved in line with rising disposable income. This has enabled more parents to afford the high fees sometimes associated with industry services, strengthening profit margins. Since 2009, IBISWorld estimates the average profit margin to have nearly tripled as a percentage of revenue.

Over the five years to 2019, industry revenue is anticipated to continue its climb. The Child Education and Developmental Center Franchises industry will continue to benefit from rising employment, which will both bolster demand and encourage higher spending on child care. “Over the next five years, industry franchises are also expected to invest more in technology-oriented activities for children, including using cameras, computers and the internet as interactive learning tools,” says Lerman.

For more information, visit IBISWorld’s Child Education and Developmental Center Franchises in the US industry report page.

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IBISWorld industry Report Key Topics

This industry provides educationally and developmentally focused child care, primarily for children under the age of six. Reports in the Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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