In a recent article featured in The Toronto Star discussing the progress of Canada’s $10-a-day child-care rollout, Naila Saeed, the CEO of Eyes Childcare in Concord, Ontario, highlighted concerns faced by for-profit daycares considering participation in the government’s program. One major issue is the imposed profit cap of 10 percent for daycares joining the initiative. Saeed, who also serves on a national advisory board for early learning and childcare, revealed that discussions about this 10 percent cap took place during meetings with government officials. However, Ontario officials did not address this specific figure when questioned by The Star.
Saeed emphasized the financial challenges for for-profit daycares, particularly in her company. Starting a franchise in her company involves substantial costs, ranging from $800,000 to $1 million, after factoring in construction and other initial expenses. With such high startup costs, maintaining a profit margin within the 10 percent cap becomes a daunting prospect. Saeed expressed concerns about how these daycares could recover their investments given the profit margin restriction and the extensive regulations on charges.
The situation is further complicated by operators who incurred debt to keep their businesses afloat during the COVID-19 pandemic. According to Saeed, the profit cap will make it even harder for these operators to recover financially, adding strain to an already challenging situation.
Check out the article here
