Profit Making Programmes (Proprietary)

Entrepreneurship in Childcare Services 4 (2+2)

Lesson 7 : Categories of Programmes

Profit Making Programmes (Proprietary)

Most of the child care programmes are proprietary. They are set up to provide a service that will make a profit. These programmes include:

  1. Independent owner: Many full and half day child care programmes are owned and operated by an individual or a small group.
    • Monthly fees is the only source of income and the operators frequently have budgeting and financial problems although some proprietary and non-profit can obtain supplementary funding from other sources including state funds.
    • The proprietary operators draw from the tuition fees paid and they rarely make a profit over and above that because of high cost of operating a quality programme.
    • Sometimes proprietors open more than one center in a community or region and begin a small chain operation.
    • It is beneficial in terms of quantity buying and shared services as it reduces the cost per child and over and above operating expenses.

  2. Corporate systems: Large child care chains are operated by a parent company that develops a prototype and sets up a number of centers throughout a state or region.
    • These chains operate under a central administration that furnishes the financial backing and is usually very powerful in setting the policy and controlling the program.
    • There often is a prototype building and programme that are publicized by the identifiable slogans, logos, brochures and advertisements.
    • Some corporate systems operate all centers carrying the chain name, while others work on a franchised basis.
  3. What is franchised?
    An individual purchases a franchise from a parent company for a basic purchase price, then pays the company a percentage of gross intake for the ongoing use of the name and the programme.

    • The present company supplies guidelines for fees, sample documents, brochures advertising materials etc.
    • Some of these sample documents must be changed by center operators in order to meet local regulations and or be in line with local practice.
    • The parent corporation often monitors the franchised centers to maintain the company standard of quality control.
    • Since company policy often controls the programme, directors are usually expected to adopt the programmes outlined by the corporate body, but also can adjust some practices based on their own philosophy.

  4. Employer sponsored programmes: There is an increasing demand for employer-sponsored child care. Employers are analyzing the benefits of child care services and seeking creative ways to meet their employees identified needs. Although many employer sponsored centres are run by the large management organizations, there are employers who seek out public or private groups such as universities or YMCA to run centres for them. The employers provide generous subsidies by building new facilities that are rent free or offering low cost leases for ground on which to build.
  5. Employers who strive to keep fees down for their employees, but value quality care and want fully qualified staff and low teacher-child ratio subsidize their centres to make up the deficits. Families and children always will be the focus of those who manage and staff the center. The points to be considered include- recruitment, retention, employee productivity and morale. The important customers are families, children, staff and sponsoring corporation.

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Last modified: Thursday, 15 March 2012, 6:36 AM