Kool Kidz Childcare Business for Sale
The Kool Kidz Story Begins
The Kool Kidz story began over 25 years ago when Phillip and Sylvia Hortis established the very first Kool Kidz Early Learning Service in Rowville, Victoria. Having successfully operated the business hands on for over 12 years, Phillip and Sylvia considered the possibility of expanding the Kool Kidz brand to offer purpose built, quality childcare services to meet increasing demand without sacrificing the level of services offered. Phillip had noted that “chains of childcare services often spread themselves too thin, leading to a drop in the service quality”. In order to build on the success of Kool Kidz and expand the brand, Phillip developed and launched the very first childcare franchise model in Australia. Phillip understood that the strength of a high-quality childcare service was largely correlated with the owner’s presence and direct involvement in running the service and forming relationships with the families.
Why Choose Kool Kidz?
The Kool Kidz franchise model was developed to present a greater market offering to Victorian families looking for childcare. The owner-operated model fosters the environment for a higher level of service that can’t be achieved by corporate competitors in the childcare space. The Kool Kidz difference doesn’t stop there, Kool Kidz has also developed its own curriculum in line with the Early Years Learning Framework (EYLF) and Victorian Early Years Learning Framework (VEYLF); the ‘Kool Beginnings Curriculum’. Kool Kidz is also committed to staffing above ratio in order to provide a higher level of attention and care to each child enrolled in a Kool Kidz service, as well as better working conditions for all Kool Kidz educators.
The Australian childcare industry is one of the largest industries in the country; worth $14.5b with exponential growth forecasted in line with the growing population of Victoria. Kool Kidz has been growing steadily over the past ten years with 14 sites currently operating in Victoria. Kool Kidz has endeavoured to enter into its next phase of growth, with the network expected to expand to 30 licensed services in the next five years.
What Does the Franchisor Provide?
Kool Kidz Central will walk you through every facet of establishing your very own Kool Kidz Early Learning Service.
- Site Selection
Kool Kidz completes detailed feasibility reports on all prospective locations to ensure that Kool Kidz services are only established in the best locations where childcare services are of high demand
- Lease Negotiation
The franchisor will negotiate the head lease with the landlord, ensuring that franchisees are provided with favourable lease terms, giving them the very best chance of running a successful and viable business
- Project Management
The franchisor will project manage the build of each Kool Kidz service, ensuring that the facility is built to specifications and is ready to pass the licensing process with the Department of Education and Training (DET)
- Service Set-Up
The franchisor will facilitate the building handover and internal fit-out. Kool Kidz has long-standing relationships with many different suppliers, ensuring that each Kool Kidz service is fitted out with the very best equipment at competitive rates
- Approved Provider (AP) Status
The central team will provide you with the training necessary to sit the AP exam. Upon passing the exam, you will be granted with AP status and will qualify to run a Kool Kidz service
- Local Marketing Launch Campaign
The Kool Kidz Central marketing department will make use of the budgeted marketing funds as part of the investment schedule to facilitate a local marketing launch campaign to build awareness and get your service some initial occupancy. Beyond this, Kool Kidz franchisees are entirely responsible for their own local marketing initiatives. To provide further assistance, the franchisor will provide Kool Kidz branded marketing assets/collateral for the use of franchisees
The Kool Kidz central team will assist in the initial recruitment for your service while training you in how to conduct interviews, and helping you to understand what the ideal staff member looks like. Over time, the responsibility will be handed over entirely to the franchisee
For the first 6-12 months, the central team will be hands on in assisting with the operations of your service. This will effectively be a training period for you, the franchisee. Each person is different, however Kool Kidz expects that after 12 months, you be comfortable in operating the service autonomously in line with Kool Kidz policies and practices
Managing a team of 40+ educators can be quite daunting, for any HR related enquiries, franchisees are encouraged to make use of HR Legal, who are HR Lawyers on retainer for the entire Kool Kidz network
“ Being an Approved Provider with Kool Kidz has been a life changing experience. Their support structure has allowed us to grow much faster than we could have on our own. Collaborating with them allowed us to overcome the insurmountable body of knowledge required to break into a widely regulated sector but also in keeping abreast of all the latest trends.”
Shveta Sharma, Franchisee of Kool Kidz Truganina and Ravenhall
Read our Brochure
For more information on how you can own a Kool Kidz service, read our brochure or download your copy today.
If you are interested in becoming a member of the Kool Kidz franchise network, please fill out the online enquiry form below. You will then be contacted by our recruitment partner and franchise specialist; Geoff McDonnell of Business Essentials to walk you through the next steps of the process.
Frequently Asked Questions
The number one incentive for joining the Kool Kidz childcare franchise is minimising risk. The childcare industry in Australia is highly regulated and requires a deep level of understanding in order for an operator to be granted with service approval. Kool Kidz childcare has over 25 years of experience in the childcare in Melbourne, and have never had a childcare service fail to achieve a license from the Department of Education and Training. All Kool Kidz daycare services are designed with efficiency in mind, and above all else, achieving the best outcomes possible for children. In addition to this level of assurance, franchisees will benefit from the goodwill that will come with being a part of a recognizable brand with an established reputation in Victoria. Becoming a part of the Kool Kidz early learning family also provides franchise partners with unique networking and learning opportunities that would otherwise not be available to them.
In order to claim childcare subsidy (CCS) from the government, you need to be an Australian citizen. Without revenue from CCS, the profitability of your Kool Kidz childcare would be severely hampered.
The investment to own a childcare centre is largely determined by the licensed capacity of the service that you are purchasing. For example, for 130 licensed places the minimum investment is approximately $1.5 million, for 168 licensed places the minimum investment is approximately $1.9 million.
Yes, all prices provided by Kool Kidz childcare at the time of signing the franchise agreement are estimates only. The prices provided are based on the most recent services we have fitted out. If your service is 2 years away from opening, you will need to be aware and consider the potential impact of inflation on the prices that you have been provided.
It is possible to crowd-fund the initial investment. However, it is important to note that Kool Kidz will only have a contractual relationship with the franchise partner. For example, if you have secured funds from family and friends, they will be considered as silent investors. They will have no control or influence over the operation of the Kool Kidz childcare service. It is also important to note that Kool Kidz has seen franchise partners achieve 50% finance in the past from major banks, and this is an avenue that we encourage franchise partners to explore.
You do not need any formal qualifications in order to be granted Approved Provider status, however, it is a Kool Kidz’s expectation that Franchise Partners are at least working towards a Certificate III in Early Childhood Education and Care within the first two years of operating your service.
Kool Kidz invests a lot of time and resources into assessing a potential Kool Kidz site. All Kool Kidz childcare for sale go through a comprehensive site analysis, demographic study, and overall business feasibility study prior to making any commitments.
All Kool Kidz business for sale are typically at least 12 months away from operating, and as far as 24 months away. Kool Kidz prefers Franchise Partners to get involved earlier in the process as it allows more time for achieving government approvals as well as completing training that is necessary prior to opening your service.
Yes, a Kool Kidz license can only be granted when a license agreement is signed. There is a very extensive process prior to signing, including lots of discussing and exchanging of information. Kool Kidz strongly advises Approved Providers to seek independent legal advice to ensure a full and comprehensive understanding of all their obligations and responsibilities.
The Licensor company Hortis & Associates Pty Ltd will be responsible for the head lease and will enter into a sub-lease arrangement with the Franchise Partner.
Our License Agreements mirror our Lease Agreements which typically run for a minimum of 15 years, as well as the subsequent options on the lease.
Franchise Partners are obligated under the Licensing Agreement to spend a minimum of 38 hours per week in their business at the premises to ensure high quality. However, the reality of running your own business is that there may be additional hours required. Once your business is out of the establishment/development phase, typically after 12 months, solid service routines backed with well-trained educators will allow your contact hours to become more flexible and annual leave may also become a possibility.
Kool Kidz businesses can be sold at any time. However, to ensure continuity for educators and families, any potential Approved Provider must be approved by the Kool Kidz Licensor.
Once you have been confirmed as an Approved Provider, you will be required to attend training at our Central Support location. Approved Providers will have access to Kool Kidz operations manuals and attend focused training sessions covering the Approved Provider role and service operation.
Kool Kidz Central Support delivers bespoke support and guidance based on the needs of the Franchise Partner. Support is typically quite involved and frequent in the first 6-12 months of operation, and then can be scaled back according to the needs of the Franchise Partner. Kool Kidz Central Support Staff are continually conducting policy reviews and updates, as well as delivering trainings to educators and dedicating time to innovation in the curriculum and pedagogy space. On an ongoing basis, Kool Kidz Central Support Staff are always available to assist and advise on any operational queries.
Yes, part of your responsibility when entering into the Kool Kidz License Agreement is to adhere to all prescribed policies and procedures when operating your service.
Each Kool Kidz business comes with its own exclusive trade territory. It is our policy to protect Approved Providers from a potential oversupply of childcare and Kindergarten places, however, we cannot guarantee other competition is not introduced from other operators.
It is Kool Kidz policy not to promote multi-ownership of services as it will only stretch resources and ultimately compromise quality. It is a Kool Kidz cornerstone value that each service is privately owned and operated by a licensee
Kool Kidz businesses can be sold at any time. However, to ensure continuity for educators and families as well as protection of the wider brand, any potential purchaser must be approved by the Kool Kidz Franchisor.
Further down this page, you can fill out a Kool Kidz Franchise online enquiry form. You will then be contacted by our recruitment partner; Geoff McDonnell from Business Essentials. Geoff will ask you a few questions to determine whether it is possible for you to become a Kool Kidz Franchise partner. If successful, you will then undergo an interview process with the Kool Kidz Franchisor Phillip Hortis.
Kool Kidz Franchise Enquiries
Interested in becoming your own childcare boss with the support and brand recognition of Kool Kidz behind you? Contact our team today!