How to Measure the Success of Your Daycare Franchise

What separates the most thriving franchises from others in the industry? It’s really all about the numbers.

For daycare franchises specifically, whether it’s financial health, customer satisfaction, employee performance, or compliance to industry regulations, everything ultimately goes back to measurable performance, which is vital for potential business owners to explore before committing to a brand.

Key Performance Indicators (KPIs) for Daycare Franchises

As you research the key players in the daycare franchise industry, you’ll find that the best method of comparison is to look at the Key Performance Indicators, or KPIs. Thriving franchises in this field all have strong numbers for:

• Enrollment and Capacity Utilization
• Revenue and Profit Margins
• Customer Satisfaction and Retention
• Staff Performance and Satisfaction
• Compliance with Regulations and Licensing

Here’s what to look for as you assess different franchise opportunities.

Financial Metrics

As with any business, the mark of a strong daycare franchise is in its ability to bring in money. You’ll want to assess the gross revenue and net profit; return on investment (ROI); cash flow management; and adherence to a set budget. 

But what do healthy financial metrics look like? For The Goddard School, one of the leading brands of high-quality early childhood education, strong metrics include $521,987 in EBITDA*; and average annual gross revenue of $2,417,129 in 2024.

As a potential business owner, you’ll want to have a grasp on these numbers and an understanding of future financial goals before committing to a particular franchise opportunity.

*This amount is based on mature schools opened for 18 months or more as of 2024. EBITDA is defined as gross revenue less all expenses directly related to operating the school excluding interest, taxes, depreciation, and amortization. You should refer to Item 19 of Goddard Franchisor, LLC’s 2025 Franchise Disclosure Document for more information regarding the reported earnings of Goddard School franchises. Your individual results may differ. There is no assurance that you will earn as much as the amounts reported by Goddard School franchisees.

Customer Feedback and Satisfaction

Thriving franchises are built on customer satisfaction, which is why gathering, analyzing, and reacting to customer feedback is so important to the longevity of a business. With 37 years of industry experience and an 83 Net Promoter Score,  The Goddard School ranks among the top early childhood education franchises when it comes to customer satisfaction. 

Methods for measurement can include anything from formal surveys to reviews posted online to informal conversations with customers. Good brands know that it’s the response to this feedback that matters the most: If a customer voices a concern, it’s important that they feel heard and reassured that their feedback is taken seriously. A balanced response that is made up of both compassion and a solution will go a long way in building trust. 

Employee Performance and Retention

Wondering whether a thriving franchise is really thriving? Take a look at its staff hired and managed by the independently owned and operated franchise locations. As with so many industries, the mark of a thriving daycare franchise is how its employees are doing. 

High-quality early education thrives on the bond between teachers and students, so regular assessments of staff performance and satisfaction are vital to maintaining a low turnover rate that drives consistency and trust. As with customer satisfaction, good communication is key between franchise owners and their staff. Regular check-ins, including staff meetings, one-on-one assessments, and classroom observation, can all help franchisees recognize their staff’s strengths and areas for improvement. 

There are a lot of factors that contribute to low turnover rates among staff, including competitive salary and benefits, a great work environment, the availability of resources, and more. Franchise locations take these factors into account to show employees just how valuable they are. 

Compliance and Regulatory Measures

While every industry has its own set of regulations and licensing requirements, adhering to those outlined for the childcare industry is especially important. At The Goddard School, we have implemented a robust training program, operational support and a Standards Team meant to ensure that our franchise owners understand and keep up to date with all compliance and regulatory measures. 

As you explore thriving franchises, you’ll see that there are always plans in place to prevent non-compliance. 

Measuring the success of your daycare franchise begins during the discovery phase of your entrepreneurial journey. While there are many factors that contribute to a thriving business in this sector, taking the time to understand each will help put you on the right path to establishing a strong franchise of your own. 

Ready to get started? The Goddard School has opportunities available now—click here to see what’s possible!