Own a Daycare Blog » Franchises http://www.ownadaycare.com/blog Just another WordPress weblog Fri, 19 Mar 2010 21:32:12 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Partnership Or Sole Proprietorship For Your Daycare Center http://www.ownadaycare.com/blog/partnership-or-sole-proprietorship-for-your-daycare-center http://www.ownadaycare.com/blog/partnership-or-sole-proprietorship-for-your-daycare-center#comments Sat, 31 Jan 2009 00:29:24 +0000 Mary http://www.ownadaycare.com/blog/?p=185 Related posts:]]> Partnership and sole proprietorship are simple forms of business ownership that are ideal for small businesses like a daycare center. But before making any decision of which ownership model you are going to choose for your business, it is necessary first to understand what the advantages and disadvantages each business type has.

Sole proprietorship is a type of business entity that has no separate existence from the owner hence the limitations of liability that are normally enjoyed by corporations do not apply. This means that all debts incurred by the daycare center are debts also of the owner because the owner of the daycare center has sole responsibility for the debts of the business. Sole proprietorship therefore refers to a natural person (as differential from a juridical person in a corporation) operating a daycare center business in his own name and in which there is only one owner. The sole proprietor of the daycare center pays personal income taxes on the profits realized from the operation of the business.

A partnership, on the other hand, is a business entity type where partners or owners share with each other the profits or losses of the business operations in which all have made their investments. Partnership can either be general partnership or private limited partnership. In general partnership, the partners and the daycare center are not considered to have separate legal entities. This means that all partners are severally liable for all the debts incurred by the operation of the daycare center. If the daycare center cannot pay off its debts, the partners then are liable to pay off the debts with their own personal assets. Private limited partnership allows the partners and the daycare center to be considered separate legal entities; the partners are not required to pay off the daycare center’s debts with their personal assets. The limited partners, however, are required to deposit and maintain an amount of money in the bank as a guarantee for its operations. Limited partners then get better credit terms than general partners because of such forced deposit.

In the aspect of management, a sole proprietorship is easier to run because the sole owner is free to do whatever he deems necessary for his daycare business whereas the owners in a partnership must share the decision making process. The sole proprietor needs to undertake all the costs, risks, and responsibilities all my himself while in a partnership, everything is equally shared by all the partners who are also the bosses of the business, requiring that the day to day decisions must be by general consensus.

Any business model is the best model as long as it is run effectively by either the sole proprietor or by the business partners. A business owner may enjoy the freedom that goes with sole proprietorship while other business owners feel very much secured in their number in a partnership. Your choice of business model will depend on your personal preferences as to resources and risk in running your daycare center.

See: How to start a daycare center

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]]> http://www.ownadaycare.com/blog/partnership-or-sole-proprietorship-for-your-daycare-center/feed 1 Reducing Liability Insurance Through Daycare Franchises http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises#comments Wed, 28 Jan 2009 00:55:46 +0000 Mary http://www.ownadaycare.com/blog/?p=172 Related posts:]]> Daycare center is perhaps the type of business that is most sensitive to liabilities arising from the fact that their clients are children who are very much prone to accidents and injuries, both physical and emotional. The expenses for damages in cases of negligence or inattentive staff, especially when the injury sustained is of permanent nature, could go sky high. We are aware that parents will tirelessly pursue compensation for any injury their children sustain while in a daycare center.

Studies have shown that accident is the leading cause of death among children between birth and five years of age. Accident is also the leading cause of emergency room cases of non-fatal injuries among children. A big number of children are permanently disabled every year due to accidental injuries. And this kind of accidents do happen to children whether they are at home or in a daycare centers.

Children, by nature, are injury-prone as they are fragile but insistent. When they fall, they keep on standing up and repeat again and again what they were doing that caused the fall. They tend to climb everything within reach and grasp things that caught their fancy. Even if you watch them attentively, a slight distraction on your part could mean an accident resulting to injury.

No parent will admit that it is her child who is at fault because a child is a child. It is always the fault of the person providing care to the child. For this reason, a liability insurance will free the owner of the daycare center from obligations and expenses. It is also for this reason that premium for liability insurance for daycare centers is very high. You really have to shell out a lot of money to buy the protection you need in running your daycare center.

Daycare business franchising is an alternative to spread the cost of home childcare liability coverage over a large number of franchisees, thus reducing the premium paid for by individual businesses. Instead of getting an individual daycare liability insurance for your own home daycare center, the franchise will be getting the insurance coverage for all franchisees, thus getting a hefty discount in the process. The individual franchisees will then pay the franchise their share of the insurance premium.

A daycare business franchise also helps the member daycare centers on such matters as training of personnel to prevent accidents and injuries to the children. They can also provide legal assistance should a member daycare center be involved in costly litigations for damages resulting from accidents and injuries.

Because of exposures to situations where liability may arise such food-borne pathogens and illnesses due to contact with other sick children, a daycare center will be protected from expenses arising out of litigations and payment of damages if it is adequately covered by a liability insurance secured by a franchise.

See: How to start a daycare

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]]> http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises/feed 0 Opt For Daycare Franchises And Reduce Your Insurance Premiums http://www.ownadaycare.com/blog/opt-for-daycare-franchises-and-reduce-your-insurance-premiums http://www.ownadaycare.com/blog/opt-for-daycare-franchises-and-reduce-your-insurance-premiums#comments Fri, 02 Jan 2009 01:25:14 +0000 Mary http://www.ownadaycare.com/blog/?p=47 Related posts:]]> One of the most liable types of businesses include day care centers. Liability in this regards refers to the cost of damage that is incurred in the event of negligence or inattention of the care taker which can either be extreme most especially if the damages affecting the child or children are dangerous or could have dangerous side effects on their minds, body and even growth.

Day care centers are therefore high-risk businesses that could cost you huge amounts of money if you are negligent. It is therefore a given fact that juries are more sensitive to cases wherein a child is reported to be suffering and of course the parents of these children are altogether zealous in ensuring that they are properly compensated regardless of whether or not the condition or injury is risky and serious in nature.

Franchising a day care business offers a way to spread the cost of acquiring home child care liability coverage over greater numbers, reducing premiums for individual businesses. Franchise companies offer the added benefit of sharing their collective expertise in prevention of accidents or illnesses with day care operators.

Many reports have shown and even proven the fact that accidents are a leading cause of death among children between the ages zero to five years. It has also been reported that accidents are the leading cause of all non-fatal injuries treated in emergency rooms all over the world.

Every year, because of the negligence of their care takers or guardians, about three thousand children are injured or killed because of television sets that fall on their heads. About ninety thousand children are disabled from accidental injuries which happen every year. Even so, some family pets could even pose great threats to children who treat them harshly or roughly.

Home child care business liability is essential to cover liability for a child’s welfare in a home day care center. Children are, by nature, very much prone to injuries. As soon as they take those first steps, they are more likely to fall, to climb on things, to slip away from watchful eyes. They tend to be persistent and try again if their first efforts fail.

Children are amazingly resilient, yet amazingly fragile. They seem to have the ability to bounce and get up and do it again if they fall. On the other hand, an unaware adult picking a child up by the arms may pull his or her shoulders out of sockets.

Home child care liability insurance covers actual damages due to negligence or lack of diligence. Also covered are possible long-term damages for a child whose care requirements may change due to an injury. Criminal acts perpetrated by the business person or any other household member are never covered by Home Child Care Liability insurance.

A liability policy covers illnesses caused by food-borne pathogens, and for illnesses contracted by exposure to another sick child in the care program.

Because legal responsibility is such a serious and costly consideration, franchised day care centers offer a viable and often less expensive means of protecting the operator’s assets from the threat of a lawsuit.

See: Start a daycare business

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