Want to Open a Preschool? Read This Before You Invest

At Creative World School, we’ve been building successful preschool franchises for over 50 years. We’ve helped new owners open in cities across the country, guided them through the startup process, and supported them as their schools grew. If you’re thinking about investing in a preschool, understanding ROI is one of the first things you’ll want to get clear on. Here’s what it really looks like, what it costs to get started, and what helps a school become profitable. 

How We Approach ROI 

Return on investment comes down to enrollment and daily operations. Some of our schools have opened fully enrolled and profitable from day one. Others grow steadily and hit that point in their first year. Both paths are common. The pace depends on the market, the team in place, and how prepared the owner is at launch. 

Our royalty structure is designed to give owners some breathing room in those early stages. You won’t pay royalties until your school reaches a certain number of enrolled students. After that, rates step up gradually over time. It’s one way we help schools build a strong foundation before ongoing costs kick in. 

Owners also get support from day one. That includes site selection, marketing strategy, operational coaching, and help getting the school licensed and staffed. We’ve refined this model over decades, and we walk every new owner through it step by step. 

What to Expect From Your Startup Investment 

Opening a preschool is a major investment, and we’re upfront about what that includes. Costs vary depending on the building size, the market, and the cost of land and construction. We offer two school sizes, and both come fully equipped with curriculum, supplies, training, and everything needed to open the doors. 

Most owners bring some of their own capital and then use SBA lending to cover the rest. That loan often includes working capital to help with early payroll and other startup costs. 

We also provide each school with a protected five-mile territory. That means you won’t be sharing your area with another Creative World School. You’ll have room to grow and serve families in your community without overlapping with another franchise location. 

Preschool Costs That Catch New Owners by Surprise 

Some of the smaller details can be easy to miss when planning for ROI. Classroom supplies need to be refreshed regularly. Staff training, food service, cleaning products, and utility costs can all add up. Marketing is another piece you’ll want to think about early. A strong campaign before opening day can make a big difference in how fast your school fills. 

Most of these costs are already built into your startup plan, but they’re worth paying attention to. We guide every new owner through the full budget, including things you may not have considered yet. You can also read more about hidden costs here. 

What Can Speed Up or Slow Down Your ROI 

Enrollment is the main driver. The faster you fill the school, the faster you reach breakeven. That starts with location. We look for areas with at least 5,000 children within a four-mile radius. That gives schools a strong source of potential families. 

Your role as an owner matters too. You won’t need to be in the classroom every day, but most of our owners stay involved and connected to their team. Having a strong director in place helps, but you’ll still want to stay close to enrollment, parent relationships, and operations. 

Some of our owners go on to open a second school, and the foundation built with the first one usually makes that possible. A school that’s set up right, managed well, and filled with care will usually stay strong over time. 

Why Long-Term Value Matters Most 

When a preschool earns a family’s trust, it becomes part of their routine. That leads to long-term enrollment, parent referrals, and consistent income. ROI isn’t just about what happens in the first year. It’s about building something stable, valuable, and lasting. 

We’ve seen schools become local landmarks. They’re the places where children take their first steps, say their first words, and discover what they’re capable of. The ripple effects go beyond the classroom. Children who attend high-quality early education programs are often more prepared for kindergarten, more likely to succeed in school, and more confident as learners. That foundation leads to better outcomes in higher education and even long-term career readiness. Families benefit, too, because having reliable care allows parents to work, study, or grow their careers knowing their child is in a safe and enriching place.

Ready to Start Strong? 

If you’re thinking seriously about preschool ownership, we’d love to talk. At Creative World School, we’ve been doing this for over 50 years and have never had a single school close due to performance. That kind of consistency says a lot about how strong the model is and how supported our owners feel. We’ll walk you through the investment, the training, and the support systems that come with every school.  

Get in touch with our team and let’s talk about what this path could look like for you.