Thinking about franchising in the childcare space?
Most entrepreneurs we speak with start by looking at daycare franchises. It feels familiar. It’s easy to understand. There’s visible demand in nearly every community.
Then, somewhere along the way, ABA therapy clinics enter the picture.
On the surface, daycare franchises and ABA clinics can look alike. They both operate out of physical centers. They both serve children. And both require staff, facilities, and regulatory oversight.
That’s usually where the similarity ends.
When you start breaking down real startup costs, how revenue is actually generated, and what it takes to operate the business year after year, the differences become clear very quickly. Many SOS franchise owners began their search in daycare before realizing they weren’t looking for a childcare business at all. They were looking to build a healthcare service with long-term demand and meaningful impact.
This guide walks through what those differences look like in practice, using current data and real-world context for hands-on entrepreneurs.
Child-focused businesses are growing across the U.S., but they grow for different reasons.
The broader child care market continues to expand largely because:
At the same time, specialized healthcare services like ABA therapy are growing because of clinical demand.
With 1 in 31 children identified with autism, families are actively seeking evidence-based therapy services. For many families, ABA therapy isn’t optional. It’s part of a long-term developmental care plan.
Comparing daycare and ABA clinic costs helps entrepreneurs understand:
This comparison isn’t about which model is “better.” It’s about which one fits the reality you want to operate in.
Daycare franchise costs vary widely and are often more substantial than they appear at first glance.
Many franchise brochures focus on headline numbers. The real cost picture usually emerges later, once site size, staffing ratios, and licensing requirements are fully understood.
Typical Cost Ranges
Most daycare franchises fall into a fairly wide cost range.
None of this makes daycare a bad option by default. It just means the capital commitment can grow faster than many first-time owners expect, especially in dense or higher-cost markets.
Recurring Costs Franchisees Should Budget For
After opening, the expenses do not level out.
Staff-to-child ratio requirements limit how efficiently labor can scale. As enrollment grows, staffing often has to grow with it. Turnover adds additional recruiting and training costs, which can impact consistency and margins.
Industry Scale & Demand Snapshot
The U.S. child care market was valued at $65.15 billion in 2024 and is expected to grow to approximately $109.88 billion by 2033, based on an estimated 6.02% annual growth rate.
Costs have also gone up. In 2024, center-based child care averaged about $13,128 per child for the year. For many families, that number is already hard to absorb.
For daycare operators, this shows up in daily decisions. Pricing can only move so far. Staffing still has to meet requirements. Enrollment has to stay steady enough to make it work.
Success On The Spectrum (SOS) operates in the healthcare franchising space, which creates a very different financial and operational structure compared to daycare.
Our centers are healthcare facilities, not childcare programs.
Across the ABA franchise sector, published examples commonly show:
SOS follows a similar structured franchise approach, providing:
Our system is intentionally designed for hands-on entrepreneur owners, not absentee or passive investors.
These are not lighter requirements, just different ones, with different operational responsibilities.
| Cost Factor | Daycare Franchise | ABA Clinic Franchise |
|---|---|---|
| Upfront Investment | $100K – $1.5M+ | ~$320K+ |
| Recurring Fees | Royalties + marketing (5–10%+) | Royalties ~5% |
| Revenue Basis | Parent tuition & enrollment | Insurance reimbursements & clinical billables |
| Regulation | Childcare licensing & ratio rules | Healthcare compliance & clinical standards |
| Market Growth | Child care ~6%+ CAGR | Growth tied to autism prevalence |
This table simplifies a complex decision, but it highlights how fundamentally different
these models are beneath the surface.
This table simplifies a complex decision but it highlights how fundamentally different these models are beneath the surface.
Stability of Need
ABA services address a medical and developmental need. Insurance-backed therapy often experiences less seasonal variability than tuition-based daycare enrollment, which can fluctuate with family schedules and affordability.
Mission & Impact
ABA therapy centers provide life-changing healthcare services for children with autism. For many owners, the opportunity to support measurable developmental progress is a core motivation, not just revenue generation.
Structured Support for Non-Clinicians
SOS is structured for hands-on owners without prior clinical experience. We provide training, operational systems, staffing guidance, and billing education so owners can focus on leadership, culture, and execution, not clinical delivery.
Before choosing between daycare and ABA, ask yourself:
Do not look only at the franchise fee. That number is rarely the full story.
What matters more is how much cash you need to open, how much you need to keep the doors open, and how long it realistically takes before the business supports itself. That is different in every market.
This is where outside help matters. Someone who can walk through operating costs, staffing, rent, and timing without selling you optimism. Break-even should be modeled conservatively, not hopefully.
Daycare businesses live inside childcare rules.
These things affect daily operations, not just paperwork. ABA clinics sit under healthcare oversight. That means credentialing, payer requirements, documentation, and clinical workflows. It is a different system with different expectations.
Neither path is hands-off. Neither runs on autopilot. The real question is which type of complexity you are willing to deal with every week.
At some point, this stops being about numbers.
It turns into a question of fit.
Daycare franchises usually depend on tuition. They need consistent enrollment. Space matters. Staffing balance matters. When attendance changes, revenue feels it quickly. ABA clinics operate as healthcare services. Therapy is prescribed. Sessions are tracked. Billing flows through insurance. Families tend to stay because the service is needed, not optional.
Some people are comfortable with the daycare model. Some are not.
If you are looking to build something that carries responsibility and stays rooted in a community over time, it makes sense to slow down and really understand how the SOS ABA franchise model works before deciding.
What is the typical cost range to open a daycare franchise?
Most daycare franchises fall somewhere between $100,000 and $1.5 million. The range depends heavily on size, location, and how much build-out the space requires.
How much does it cost to open an ABA clinic franchise?
ABA clinic franchises commonly start in the low $300,000 range and go up from there based on market and setup needs.
Is insurance-backed revenue more stable than daycare tuition?
In many cases, yes. ABA therapy is medically necessary, so families usually remain engaged once services begin. Tuition-based models tend to feel enrollment changes faster.
Do I need clinical experience to open an ABA franchise with SOS?
No. Owners focus on running the business. Clinical services are delivered by licensed professionals.
Which market is growing faster, daycare or ABA services?
Childcare grows steadily. ABA demand continues to rise as more children are identified and families seek therapy.
Nichole Daher is an American entrepreneur, book author, autism advocate, and founder of Success On The Spectrum (SOS)-the first autism treatment franchise in the United States-known for its parent viewing rooms and quality-driven ABA services. She currently serves as CEO of SOS Franchising, where she provides support, resources, and opportunities for entrepreneurs to open their own Success On The Spectrum autism centers.
