Starting a preschool franchise may seem easy at first. You get excited about the idea, find a brand, pay the franchise fee and expect everything to fall into place. But in reality, things are not always so simple. Many people make big mistakes while calculating the pre school franchise cost. These mistakes later lead to stress, confusion and even financial loss.
If you want your preschool to succeed from the beginning, it is important to plan every expense carefully. Let’s go through the most common mistakes people make when estimating the pre school franchise cost, so you can avoid them completely.
Common Mistakes To Avoid When Estimating Pre School Franchise Cost
Mistake 1: Not Including Hidden Setup Costs
When people see the initial franchise brochure, they often get carried away by the number shown as the “setup cost.” But this is usually just the starting point. Most brochures include only the basic fees. What they don’t show clearly are all the extra costs like furniture, teaching tools, safety equipment, branding material, indoor and outdoor play areas, CCTV installation, classroom decorations, signboards and uniforms.
The actual pre school franchise cost goes up quickly once you add these things. And if you do not plan for them you may end up borrowing money or cutting corners later. That affects quality and your reputation.
Tip: Always ask for a full cost breakdown. Make sure you know what is included in the franchise fee and what you will have to pay extra. Write everything down in a list.
Mistake 2: Treating Rent Like a Fixed Number
Rent can be tricky. You may choose a location that looks nice but the cost of rent can change depending on many things like the area, property type and city. In metro cities, rent can eat up a big chunk of your budget. And then there’s the cost of turning that empty space into a bright and safe preschool , interior work, play zones, flooring, air conditioning, fire safety measures and more.
Many people forget to include these extra expenses while calculating the pre school franchise cost. That’s a big mistake.
Tip: Always compare at least 3–4 properties before choosing one. Try to find a balance between visibility, safety, rent and renovation costs. Add everything to your budget , not just the rent.
Mistake 3: Ignoring Marketing and Promotion Expenses
You cannot just open your preschool and wait for parents to come. You will need strong marketing , especially in the beginning. This includes banners, leaflets, hoardings, social media ads, local school fairs and maybe even small gifts for children during promotional events.
Most people forget to add this to their pre school franchise cost. Without proper marketing, it becomes very difficult to get enough admissions. That affects your income and business growth.
Tip: Keep aside a monthly budget for promotions. Marketing should be planned for at least the first 6–12 months, not just before the launch.
Mistake 4: Not Planning for Training and Teacher Development
Your preschool will only do well if the teachers are trained and updated. Good training builds confidence, improves teaching quality and creates a positive learning space. While some franchisors include training in their fee, others charge extra.
Many people do not include this when they think of the pre school franchise cost and they are surprised later when these training sessions come with additional fees.
Tip: Confirm how often training is provided. Ask if the fee includes regular staff development or if that will be an extra cost.
Mistake 5: Forgetting Technology and Software Costs
In today’s world, technology matters even in preschool. Parents want updates through apps. You need systems to manage attendance, fee collection, class schedules and parent teacher communication. These systems are usually software based and need regular updates or subscriptions.
People often don’t think about this while calculating the pre school franchise cost but these costs can grow with time.
Tip: Choose simple, easy to use tech that fits your preschool size. Ask if the franchisor provides their own software or if you need to pay separately.
Mistake 6: Overlooking Licensing and Legal Approvals
Running a preschool means following certain rules and getting government approvals. You might need local education department permissions, fire safety clearance, health certificates and child safety approvals. All of this takes time and sometimes money.
If you forget to include these in the pre school franchise cost, they can delay your launch and increase expenses later.
Tip: Talk to local preschool owners and make a checklist of every permission you will need in your city. Add this to your total budget.
Mistake 7: No Backup Money for the First Few Months
This is one of the most serious mistakes. Most preschools do not start making profits from the first month. Sometimes, it may take 6–9 months to break even. If you haven’t kept extra funds for this period you may find it hard to pay rent, salaries or other bills.
This gap can harm the business and reduce your chances of long term success.
Tip: Always keep a cushion fund ready. Add at least 6 months of basic monthly costs to your pre school franchise cost for safety.
Mistake 8: Assuming Every Location Has the Same Costs
Different places have different needs. A preschool in Mumbai will cost much more than one in Bhopal. Staff salaries, property rates, advertisement costs and even the design requirements can vary based on where you are.
Many people copy a cost sheet from another franchise in another city. This leads to problems when the local prices turn out to be different.
Tip: Never use a cost estimate from another city. Always make a location specific plan for your pre school franchise cost.
Mistake 9: Not Setting Money Aside for Repairs and Upgrades
Every preschool needs regular touch ups. Children use the space daily. Walls get dirty, furniture breaks, toys wear out and new materials are needed. But most people forget to include these small repair and upgrade costs in their monthly plan.
Over time, this creates a poor learning environment and affects the school’s image.
Tip: Always add a small monthly amount to your budget for maintenance. This keeps the preschool fresh and child friendly.
Plan Smart and Build with Confidence
Setting up a preschool is more than just paying a fee and decorating a space. It’s about creating a strong foundation that supports growth, safety and learning. If you plan the pre school franchise cost carefully you can avoid major problems down the line.
Keep a close eye on every small and big expense. Always ask questions. Prepare for the expected and the unexpected. A preschool is a beautiful business , but only if it is built on clear planning and honest budgeting.
If you are looking for guidance from experts who have already helped others succeed in this journey, Shri Educare provides complete support to help you build a successful pre school franchise that stands the test of time.