The Benefits of Leasing vs Owning: Deciding the Right Model for Your Playgroup Franchise

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Preschool franchising is a very lucrative way of investing. However, choosing between leasing and owning a space for your playgroup franchise can be a challenging decision. The article talks about how you can select one of the models; leasing or purchasing while starting a preschool franchise. Without further ado, let us get started now.

A Brief Introduction

Starting a preschool franchise could be a great start, however, there has to be planning carefully, investing, and making decisions. Choosing the correct location for your preschool franchise is an important decision because it will determine how successful you are in future. Deciding between lease or buy option has major implications on your finances, internal workings, and longevity.

The Benefits of Leasing for Your Preschool Franchise

Leasing is a popular option for preschool franchise owners, especially those who are starting their business or expanding to a new location. Some of the benefits of leasing include:

  • Lower upfront costs: Leasing is cheaper upfront compared to buying. It enables preschool franchise owners to begin or expand business while using relatively lower capital, cutting down financial risks, and channeling more resources to other operating considerations.
  • Flexibility: Preschool franchise owners are able to lease premises which suit their needs at present and in the future, on a contract arrangement. This allows them to move or expand depending on the market and consumer demands.
  • Limited liabilities: In that case, all repairs, maintenance, and utilities when leasing space are on the side of the landlord. This helps preschool franchise owners eliminate costly managing tasks on the part of the preschool owners thus minimizing operations risk.

The Benefits of Owning for Your Preschool Franchise

While leasing has its advantages, owning a property can also be a viable option for preschool franchise owners. Here are some benefits of owning a space for your preschool franchise:

  • Long-term investment: Preschool franchises give an opportunity for their owners to accumulate equity and incur more future profits by owning properties. They can mortgage a property, lease it out, or simply sell it when an opportunity arises.
  • Greater control: Preschool franchise owners have greater flexibility in the way they design their space when they own property. It enables them to customize or tailor-make their space as per their identity, goal and customers’ expectation and requirement.
  • Stability: Preschools give property ownership to its franchise owners, offering them stability and certainty of staying at specific locations with long-term prospects. This is more beneficial, especially when it comes to maintaining repeat customers and developing corporate image.
  • Tax benefits: It offers tax advantages of deducting home mortgage interest, property taxes, repairs, and depreciation expenses from preschool’s franchise taxable income.

Considerations for Choosing Between Leasing and Owning for Your Preschool Franchise

When deciding between leasing vs owning for your preschool franchise, it is essential to consider the following factors:

  • Location: Where you open your preschool franchise is one of the most important aspects of whether or not your business becomes successful. Focus on issues to do with availability, ease of location, client volume, and competitors while deciding between investing in real estate or opting for leases.
  • Business plan: Your preschool franchise’s business plan should guide your decision as well. Evaluate if leasing or owning will work best for your business by factoring issues such as budget, market demand, expected growth patterns and operation demands.
  • Costs: The cost implications of leasing as opposed to owning also comes together with some financial commitments. Consider evaluating your cash flow, initial investment, monthly costs, maintenance expenses and potential benefits in terms of taxes before making a call.


Your decision on owning vs leasing for your preschool depends on these crucial aspects; objectives, location, costs and market demands. They both come with some advantages but also disadvantages, so it is up to your unique situation which path you choose. For any preschool or franchise owner, take time and conduct your own evaluation of options, consult with authorities and arrive at a rational and logical decision that suits your long term goal. 

Even if you choose the best preschool franchise, your success depends on your ability to adapt, innovate, and continuously improve. Always consider the best preschool franchise opportunities and preschool franchise cost to make a wise investment decision.

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