During the war, educational franchises became the third most popular after food and retail franchises.
Several factors came into play. These include the increased demand for private education during the Covid pandemic, migration since the start of the war, and demand for both educational services and franchises to start a business. In addition, there is a relatively low entry threshold when launching small formats of institutions.
What are the peculiarities of educational franchises, how much to invest and how much you can earn – in the article LIGA.net
Why the market has revived
There are about 600 franchises in Ukraine. There are about 50 educational franchises, says Artem Chorny, co-founder of the Most franchise agency. It’s hard to be more precise, as there is no unified database of franchises in Ukraine, he says.
There are two reasons for the market revival:
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Entrepreneurs involved in education and child development have grown to scale and are thinking about creating franchises.
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There was a demand from potential partners: entrepreneurs who had left their hometowns because of the war began to look for ways to make money
“Companies engaged in education and child development have started to request the creation of a franchise,” Artem Chornyi said.
Kateryna Labosh, the founder of the Children’s Development Academy in Mukachevo, confirms this. “It has become a kind of mainstream: if I have an institution, I must have a franchise. Everyone is trying to catch this wave,” the entrepreneur shares her observations.
There are also franchise buyers.
“There is a demand among Ukrainians around the world. Those who have left are thinking about manicure salons, restaurants, and certain children’s studios,” says Roman Kirillovich, co-founder of Franch.Ai.
But unlike the catering or beauty industry, the education sector is cheaper to enter. For example, the entry threshold for the cheapest format – a development school or educational center – starts at $2,000, without a lump sum payment. And, for example, to open small i love kebab restaurant needs to invest $35,000, in kiosk Kartofan 15,000-17,000 c.u. (currency is not specified).
Difference in educational formats
Three main formats of institutions are developing in the private education sector: kindergartens, schools, and development centers.
The franchise for the latter is the cheapest. For example, to open an educational hub Insha Osvita sufficiently $2 000 – $10 000. Required premises – from 100 square meters. One-time lump sum payment of $5,000. The estimated payback period is from six months. The franchisee company also provides an installment program and loans from partner banks.
Such institutions provide services for learning foreign languages for adults and children, developing thinking, preparing for school, etc.
Opening a private kindergarten is more expensive. In addition, there is a special condition for such institutions: you need to obtain a license for educational services from the local state administration.
Yes, for the smallest kindergarten networks “Krayina Ditynstva requires investments of $12,500 and premises of 200 square meters. Financial forecast: the income for a small kindergarten is from UAH 80,000, for a four-group kindergarten – from UAH 400,000 per month.
To open a kindergarten for four groups under brand totosha network, an investment of $40,000 is required, with a lump sum payment of $7,800. If all groups are fully loaded, the net profit per month can be $4,000.
In Kyiv, the Totosha Finnish kindergarten operates in the Troyeshchyna residential area. According to YouControl, in 2023 its revenue was UAH 2.4 billion, net profit was UAH 135.5 million, in 2024 – revenue was UAH 2.4 billion, net profit was UAH 35.8 million.
The return on assets in 2023 was 58.3%, in 2024 – 14.6%.
Cost of some franchises, terms and conditions, and profitability
BrinzaSchool, a school for children’s motor development. Lump sum payment – UAH 120,000-200,000. Royalty – 2%. Investment of UAH 120,000-130,000. Self-sufficiency from the first to the second month. The return on investment is five to seven months. Income – from 41,000 UAH per month.
Green Countryschool of English. Lump sum payment: 3 200€. Equipment of the premises and equipment: ~3 000€. Royalties: 7% of the turnover. Marketing payments: 2% of the turnover. Expected profit: 1 000-3 000 € / month. Payback period: 16 months.
“The Country of Childhood”and a kindergarten. Investments and expenses – from UAH 500,000. Payback period: about two years. Financial forecasts: from 80,000 to 400,000 UAH per month, depending on the size of the institution.
“Totosha, a kindergarten for four groups. The lump sum payment is $7800. Investments – from $40,000, payback – from 1.5 years. Profit – $4000/month at full load.
Insha osvitaeducational hub. Investments – $2000-$10000. The lump sum is $5000. Royalties – 3% of the turnover. Deductions for marketing – 3000-5000 UAH/month. Payback period – 6 months.
One of the first was Totosha
One of the oldest educational institutions is the Totosha kindergarten. In 2011, it started as a development center, which later grew into a kindergarten.
At that time, there was almost no private education in Ukraine, so the founder, Tetiana Sorokina, gained experience through her own mistakes. For example, she had to figure out how to get a license for a kindergarten. At that time, there was no information about what was required.
“I lost five kilograms, but I figured out how to get a license,” the entrepreneur recalls, “The first kindergarten gave me a very good kick.”
Later, the entrepreneur was approached by people who wanted to open a kindergarten, and Sorokina provided consulting services on this issue until 2018. Eventually, she decided to start her own franchise.
Currently, Totosha operates in the formats of a kindergarten, a school, and a development center. There are nine franchises, three of which are abroad: in Poland and Spain. The foreign locations were opened by Ukrainian refugees after the start of the full-scale invasion.
Sorokina also has her own establishments – two kindergartens, a nursery, a development center, a school, and a catering business.
The nuances of educational franchises
Investment is not enough to open an educational institution.
The franchise partner should be deeply involved in operational processes. For example, to control the choice of premises. “The location should be chosen by someone who lives in the area, because they know how accessible it is,” advises Kateryna Labosh, founder of the Children’s Development Academy company from Mukachevo.
In the first months, while the recruitment of children is underway, the franchisor has to cover the necessary funds for staff salaries and other payments. At the same time, there is no guarantee that the flow will be immediate.
“We need to prove ourselves. Parents have to come, watch, and try. We shouldn’t expect a flood of people right after the opening,” warns Sorokina.
It is extremely important to prove yourself in this business.
“If an institution does not prove itself in the first month of operation, there is a 70% chance that it will not be successful,” says Kateryna Labosh.
Qualified teachers are one of the factors in the success of an educational project. However, this is a big problem now, both entrepreneurs say. Many specialists have left. Specialists are a particular problem. “It’s hard to find specialized specialists: speech therapists, psychologists, speech pathologists, neurocorrectors,” says Kateryna Labosh.
There is also no need to rely on staff from public institutions: such employees cannot always adapt to the working conditions and workload of a private institution.
However, the staffing problem with teachers is not unique to Ukraine. The EU also has a shortage of such specialists, as noted in the report European Commission “Key data on early childhood education and care in Europe 2025”.
Kateryna Labosh founded the Academy of Children’s Success in 2019, and institutions under this brand operate in 11 cities of Ukraine. The franchise for a development center costs $6,500, and for a kindergarten – $8,000.
In addition, at least $6,500 needs to be invested in the development center. It’s hard to name an upper limit for investments in a daycare center, says the entrepreneur: it depends on the size of the premises and the number of children and staff.
“My own establishment in Mukachevo is about 500 square meters and an investment of more than $20,000,” says the entrepreneur.
The private education market in Ukraine is currently developing. Through franchises, among other things. Tatiana Sorokina predicts that international corporations will enter the market in the future.
“Sooner or later, large corporations will come here and buy up existing networks with customers, as they do abroad,” the entrepreneur says.
