Child-care business becomes franchise

Harrington opened the original Little Sunshine’s Playhouse, 2826 W. Chestnut Expressway, in June 2002. Harrington said she filed her Uniform Franchising Offering Circular through Dallas attorney Charles Cannon and is now selling franchises.

“We are opening three centers in 2005, and no more than seven in 2006,” she said.

She said her plan is to move slowly in the first few years because of staffing issues.

Little Sunshine’s first franchise opened in August at 4910 N. 21st St. in Fremont Hills and is licensed to provide care for 55 preschool students ages 2 and older. Leasing negotiations are under way for a location in Harrison Ark., with plans to open before the end of the year. “They are just springing up all over,” Harrington said.

When franchises are bought, Harrington said franchisees go to the location on West Chestnut Expressway for a two-week training program. The program teaches new owners about payroll, bookkeeping and how to run a classroom.

Employee opportunities

But chances are, many of Harrington’s franchisees already will be familiar with the business, as employees of current and future Little Sunshine’s Playhouse locations have the opportunity to earn credits toward their own franchises through an option Harrington has dubbed the Win Program, in that it can take employees to the top of the company chain, so to speak.

“If employees work for a period of four years, full time, they have accumulated enough Win credits to pay for their entire franchise fee of $60,000,” she said. “It is a way for our employees to move up in the company all the way up to ownership.”

Once an employee earns the needed credits, Harrington will open the franchise, and the employee-turned-franchisee will own it.

Shelly Gardner, a Little Sunshine’s employee since 2002, will open the first Little Sunshine’s franchise bought through the Win Program no later than spring 2007 in Lee’s Summit.

“I believe in all the policies and procedures that Rochette has put in place, and she is a trustworthy boss, and very caring,” Gardner said. “I feel I can do a lot under her.”

Among the features of Little Sunshine’s Playhouse centers is a Kiddie Cam system that allows parents to watch their children on the Internet.

Also, Harrington said, Little Sunshine’s has a nature center on its playground.

Royalties

Franchisees pay Harrington weekly royalty fees, and for employees who buy a franchise through the Win program and don’t put out money up front, those fees are 8 percent of weekly revenues. For franchisees – such as Joyce Harrington, a family member who operates the Fremont Hills center – the royalties are 6 percent of revenues.

Enrollment and tuition

Harrington’s Springfield center is licensed to care for 110 children and 104 children are enrolled.

Tuition for enrollment at Little Sunshine’s Playhouse at the Springfield location is $160 for infants and toddlers, $110 for 2-year-olds, and $100 for preschool and pre-kindergarten children.

Along with tuition, there is a $25 per child enrollment fee, and if enrollment is renewed, there is a $10 re-enrollment fee due each year. Harrington’s Springfield center has 40 infants and toddlers, 24 2-year-olds and 40 preschool/pre-kindergarten-aged children.

Harrington, who has an Associate of Arts and a degree in early childhood development from Ozarks Technical Community College, said her business grosses more than $700,000 in yearly revenue, mostly from tuition. She also receives money through grants, food program funds and other sources such as the franchise fees.