Opening a Nursery Franchise in the UK

Franchising can look like the ideal shortcut into the childcare business. But is it worth the price tag?

In this video, we’re going to walk through what you really get when you invest in a nursery franchise and how those costs break down. We’ll compare it to what you might get if you took an independent route instead, with expert support by your side.

Whether you’re curious about franchising or just weighing up your options, this is an honest, in-depth look at the numbers, the support, and the ownership involved so you can decide what’s truly best for you.

INTRO

If you’re new here, I help everyday people open successful nurseries across the UK with or without a franchise. I’ve helped people from all walks of life, whether they’re completely new to childcare or experienced managers ready to go out on their own.

If you’re thinking of opening a nursery, make sure to subscribe and hit the bell so you don’t miss any of the step-by-step content I put out. And if you haven’t already, check out my video “Should You Start a Nursery from Scratch or Buy One?” and “Step-by-Step Guide to Ofsted Registration.”

[SECTION 1: WHAT ARE YOU REALLY PAYING FOR IN A FRANCHISE?] 

So, let’s get to the numbers. When someone says, “You’ll need £50,000 to buy a franchise,” that’s often just the beginning.

Let’s break down the typical costs of opening a nursery franchise in the UK:

1. Franchise Fee (£20,000 -£50,000+) This is the upfront payment you make to the franchisor. It gives you the right to use their brand name, access their systems and documentation, and often receive some form of training and launch support.
2. Setup and Building Costs (£50,000 -£300,000) Even with a franchise, you still need to fund:

• Lease or purchase of your building
• Renovation and compliance upgrades
• Classroom furniture and toys
• Health & safety measures
• Outdoor space setup
• Technology systems

Franchisors often have specific layout requirements and preferred suppliers, which can drive these costs higher.

3. Royalty Fees (8 -10% of Turnover) This is a monthly fee you pay, not based on profit but on your gross income. That means even if your nursery is just breaking even, a chunk of your revenue still goes to the franchisor.

Let’s say your nursery earns £20,000 a month. A 10% royalty = £2,000/month. That’s £24,000 a year every year.

4. Marketing Levy (1 -2%) This fee is usually mandatory, used by the franchisor for national or regional campaigns. You may also need to fund your local advertising separately.
5. Renewal Fees and Other Costs

• Franchise contracts often run for 5 or 10 years.
• At renewal, you might pay another lump sum.
• You may be required to refurbish to reflect updated branding.
• There may be training fees for new staff.
• Want to sell your nursery? A transfer fee could apply.

That £50,000 “initial investment” can easily become £100,000 -£300,000+ once everything is added up.

[SECTION 2: WHAT DO YOU GET FOR THAT MONEY?] 

It’s not all bad so let’s talk about what’s included when you pay for a franchise:

Use of a trusted brand name Pre-written policies and procedures Operational manuals Branding assets (logos, colours, website templates) Initial training Some setup assistance Ongoing support (depending on the franchise) Centralised marketing (regional/national) Peer network of other franchisees

And if you’ve never run a business before, the franchise route can feel safe.

But what many don’t realise is all of that support can be accessed elsewhere, often for a much lower cost, and without giving up so much ownership.

These are all helpful. But they come with strings attached, which we’ll cover next.

[SECTION 3: THE STRINGS ATTACHED] 

Here are some of the common limitations that come with franchising:

You don’t fully control your brand  – Even though you own the business, you don’t own the brand. You must follow their systems  – Want to change the curriculum, the décor, the snacks, or the hours? You’ll likely need permission. Restricted suppliers  – Often you must buy from approved (sometimes more expensive) vendors. Territory restrictions  – You can’t expand beyond your assigned area. Shared reputation  – If another branch has a scandal, your nursery could be affected too.

Many people go in expecting freedom, only to realise they’re effectively managing someone else’s business.

[SECTION 4: WHY SOME PEOPLE CHOOSE TO GO INDEPENDENT] 

Now let’s explore what happens when you don’t go with a franchise.

Going independent doesn’t mean doing it alone. And it doesn’t mean you have to know everything. It just means you choose your own support without giving away control or a slice of your earnings.

Here’s what you can avoid: No franchise fee No royalty No long-term contracts No brand restrictions

And here’s what you keep: 100% of your brand and profits Full creative and operational control The ability to adapt and innovate Freedom to grow or stay small

But how do you find the right support?

[SECTION 5: GET SUPPORT WITHOUT A FRANCHISE YOU’RE NOT ALONE] 

Just because you don’t buy into a franchise doesn’t mean you have to figure everything out by yourself.

Here are five powerful ways to get the support you need without giving up your independence:

1. Mentorship Programs and Consultants You can work directly with childcare business mentors who’ve helped others succeed. For example, my Complete Mentorship Package gives you personalised, step-by-step guidance from finding a building and registering with Ofsted to marketing, recruitment, and beyond. It’s like having a franchise-level coach but without the ongoing fees or loss of control.
2. Industry Associations Groups like NDNA or PACEY offer legal advice, training, and up-to-date resources on compliance. They also host events and webinars to help you stay informed and connected.
3. Local Authority Support Your Council’s Early Years team can help with guidance around registration, building requirements, and sometimes even funding or grants for new nurseries in high-demand areas.
4. Peer Networking Online communities Facebook groups, LinkedIn forums, and local networking events allow you to connect with other nursery owners and exchange practical advice. These networks become invaluable as you grow.
5. Self-Education Between YouTube, books, and online courses, you can learn almost everything you need and then personalise it with help from a mentor.

So if you’re leaning toward the independent route, but still want a strong support system here’s where I come in.

Let’s say you like the idea of support. You want the policies, the plans, the help with Ofsted and finding staff. But you also want to:

Keep more of your profits
Build your own brand
Make your own decisions
Avoid £100k+ investments

That’s where independent setup with expert mentorship comes in.

Instead of paying a £50k fee and handing over a chunk of your sales every month, imagine paying a one-time cost for someone to support you in setting up your nursery from scratch with full guidance.

This is where my Complete Mentorship Package comes in and I’ll talk about that later. But first, let’s look at what people actually get for the price.

[SECTION 5: COMPARISON TABLE  – WHAT DO YOU GET?]
Let’s break this down in a simple side-by-side format:

Feature	Typical Franchise	Complete Mentorship Package
Documents to Open	Yes	Yes
Help Finding a Building	Often not included	Included
Recruitment Help	Rarely included	Included
Ongoing Strategy Calls	Not common	Weekly check-ins
Control of Brand	Restricted	Full control
Curriculum Flexibility	Franchise dictated	You choose or blend
Total Upfront Cost	£50k -£150k+	£6,995 or 6x £1,275
Ongoing Royalty	8 -10% of sales	3% of profit

When you step back and look at it this way you realise something. You’re paying significantly more for less control, and giving up future earnings along the way.

If you’re someone who wants to build a high-quality nursery that’s truly yours with your name on the door, your vision in every detail, and the ability to scale without permission then independent ownership with tailored support is the answer.

That’s why I created the Complete Mentorship Package. It’s not a course you do alone. It’s not generic downloads. It’s a guided journey.

Help finding the right building
Full support with Ofsted registration
Templates, walkthroughs, checklists
Staff recruitment help
Weekly action plan meetings
Help setting up your nursery and marketing it
Support after you launch

No huge fees. No loss of control. Just the support you need, without the strings.

[SECTION 8: FINAL THOUGHTS]
Let’s be honest paying £50,000+ for a nursery franchise might sound appealing on the surface. But when you add up the hidden costs, the royalties, the limitations… it’s worth asking yourself:

What am I really paying for?

And more importantly is there a better way?

If you’re serious about opening a nursery, and want to keep more of your earnings, build something with your own name on it, and still have all the guidance you need then independent setup with mentorship might be the answer.

[CALL TO ACTION]
If you want to find out more, click the link on screen now or in the description below to explore the Complete Mentorship Package. There’s a full breakdown of what’s included and you can get in touch to see if it’s the right fit for you.

Thanks for watching and if you found this helpful, please give it a like, leave a comment if you’re considering opening a nursery, and don’t forget to subscribe for more videos just like this.

See you in the next one!