What a Franchise Buyer Needs to Know About Buying a Children's Lighthouse

Investing in a Children’s Lighthouse franchise, the leading early childhood education franchise dedicated to providing values-based care for infants, toddlers, preschool, and school-age children, is more than just a business decision — it's an opportunity to make a lasting impact on your community while building a lucrative enterprise. However, this is a unique venture that requires both passion and preparation. According to Matt Kelton, Vice President of Franchise Development, franchise buyers should understand key aspects before diving in.

“At its core, Children’s Lighthouse is about creating a meaningful difference in the lives of children and their families,” said Kelton. “There are three things you need to have — the love of education, kids, and making an impact on the community. And it’s also important that interested investors understand the financial pieces and operational aspects of the business.”

A Mission-Driven Opportunity

We offer people the opportunity to help prepare today’s children for success tomorrow, while creating a wealth-building enterprise for their own family members. Our mission is our Brand Promise: “We create a safe, fun, and happy place that fives your child confidence, a sense of comfort today, and a lifelong love of learning, friendship, and community.”

Since being founded 28 years ago, the Children’s Lighthouse brand has expanded to more than 70 locations with 24 more in development and even more in the pipeline. Franchisees are drawn to the brand for its ability to deliver both emotional and financial rewards. With a proprietary STREAM-based Lighthouse Pathways® curriculum and programs for various age groups, the centers nurture the development of confident, well-rounded children while addressing the needs of dual-income families in need of premium childcare.

“There's a significant nationwide demand for childcare,” said Kelton. “The demand far exceeds the supply, especially at the premium end.”

Over two-thirds of the nation’s 22.1 million children under the age of six have both parents in the workforce. Also, the U.S. childcare market size was valued at $59 billion in 2023 and is expected to surpass around $88 billion by 2033.

Children's Lighthouse franchisees can access multiple revenue streams by offering a range of specialized educational programs tailored to different age groups along with summer camps. From the Lighthouse BRIGHT® curriculum designed for early brain development in infants to the dynamic xSTREAM Quest® for school-aged children and engaging summer programs filled with diverse activities, franchisees have the opportunity to attract a broad demographic of families. 

We’re Different

Kelton emphasizes that Children’s Lighthouse provides unparalleled support to franchisees, setting the brand apart from competitors, many of which are owned by private equity firms focused primarily on investor returns.

This robust support model is rooted in the brand’s family-owned culture, which fosters a sense of collaboration and care. “It’s a different kind of culture at Children’s Lighthouse,” Kelton said. “We aren’t just driven by a P&L. We are driven by great values and navigating the waters of everything you need to run a successful franchise. Our franchisees can even call our President on a Sunday night.”

Kelton also points out that everyone in the company takes seriously the requirement to operate within the confines of the company’s core values of integrity, excellence, and passion. “They aren’t just words on a piece of paper,” he said. “The decisions we make are meant to better the system and provide better tools designed to help our franchisees develop and grow profitable businesses. We do what we say, we strive for excellence, and everyone here has a passion for this brand and the services and care it provides.”

A Significant Investment

Opening a Children’s Lighthouse requires a substantial financial commitment, with startup costs  beginning at $1,074,580 to lease a center,  and costs increasing if you purchase land and own the building. 

“It’s definitely a big investment,” Kelton said. “And opening a center requires dedication and tenacity. We aren’t just helping owners buildout and equip a ‘vanilla box’ in 90 days. We are helping you build an actual center where over 200 children can learn, grow, and thrive.”

The investment with Children’s Lighthouse comes with comprehensive support. Children’s Lighthouse partners with developers, real estate firms, construction/project managers, and architects with decades of experience in the commercial and childcare space. Our chosen service providers offer end-to-end real estate services focused on securing premium locations in thriving communities. From site selection and lease or land purchase negotiations to groundbreaking and building completion, these partnerships guarantee expert guidance throughout the process.

“Finding the right location is critical for the success of any Children’s Lighthouse center,” said Kelton. “We’ve established strong partnerships to help franchisees navigate the complexities of real estate, helping to ensure that each center is set up for long-term success.”

These strategic partnerships and this approach not only aligns with the substantial investment required, but also aims to maximize the revenue potential of each center. According to the 2024 FDD, centers open at least 18 months earned an average gross revenue of $1.94 million, with some locations surpassing $3.5 million.

Process Efficiency and Long-Term Benefits

The long-term benefits make Children’s Lighthouse an appealing franchise opportunity. Franchisees typically work 10 hours or fewer per week after the first year of operations.

“I’ve never seen a business that can provide as much wealth potential as the Children’s Lighthouse opportunity does with such minimal time investment once the business is off and running,” said Kelton. “You hire a director to run the day-to-day activities, which allows franchisees to focus on growing their business or spending more time with their families.”

“We help you maneuver through all the initial time commitments  related to site selection, permitting, and construction. Our internal team along with the service providers who provide excellent brand support help make the initial phases of getting the center open as efficient as possible,” according to Kelton. 

The Right Fit

So, who is the ideal candidate for a Children’s Lighthouse franchise? Passion for education and childcare is essential, as is the financial capability to manage the investment. Franchisees also need to understand the responsibility involved in providing care for children — what Kelton calls “people’s most prized assets.”

“If you have a passion for education, for childcare, and for enriching your community, this could be a great opportunity for you,” said Michael Brown, President of Childrens Lighthouse Franchise Company. “It’s an industry that requires great responsibility, but it’s also so rewarding. We love hearing stories of the great achievements children who got their early learning started in a Children’s Lighthouse center have had.”

For the right franchisees, the Children’s Lighthouse model offers a unique opportunity to build generational wealth, partly because it involves a commercial real estate component.

“This is not just a childcare business — it’s also a commercial real estate play,” said Kelton. “We’ve made a lot of people wealthy over the years by helping them scale quickly and open multiple locations.”

Why Now?

With open territories in major markets across the U.S., including Dallas, Houston, Raleigh, and Nashville, there’s never been a better time to invest in Children’s Lighthouse. The brand’s family-driven culture and proven model, along with the growing demand for quality childcare, make it an exceptional opportunity for the right franchisees.

For more information on franchising with Children’s Lighthouse, visit https://1851franchise.com/childrens-lighthouse.