Maryland-based daycare franchise has lending down pat

8/18/2011

The economic downturn of the late 2000s recession has caused many small businesses to turn to local banks for lending, and one franchise was ahead of the trend before the crisis hit.

Kiddie Academy, a Baltimore area daycare, was established in 1981 and became a franchise in 1993. The company touts its educational focus, and recently celebrated the opening of its 100th location.

The company has a policy of working with lenders, especially those at the community level, in the interest of procuring funds for its new branch owners.

"Despite the fact that lending has softened and lending requirements are stiffer, we have had processes in place that aggressively help franchisees reach out to regional and community lenders in an effort to secure funds," said Michael Miller, CEO and president of Kiddie Academy. "We haven't felt the impact of the credit crisis like other franchisors because we didn't need to re-create our franchisees' financing model."

By helping franchisees select the right lender and rigorously investigating the plans of potential academy owners, the company can facilitate the creation of successful divisions and help new associates realize sound commercial funding. While Kiddie Academy's plan isn't groundbreaking, applied as a franchise business plan, it may bring better brand cohesion and overall success to other franchise ventures.