WHO WE ARE

Myths vs. Facts

8 myths about for-profit child care providers

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Myths

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Facts

MYTH #1

For-profit providers are Profit-driven and not mission-oriented.

FACT: ECEC providers, across all ownership types, are mission-driven and focused on trust, safety, and child development.

Success depends on strong family relationships and community trust, aligning mission and business incentives. Positive family experiences drive enrollment and long-term sustainability.

MYTH #2

Teachers in for-profit centers are paid less, receive fewer benefits, and lack professional development.

FACT: ECEC providers invest heavily in educators:

  • Median teacher wages are equal to or higher than national and state wages.
  • Benefits include health, dental, vision, paid leave, and retirement.
  • 92% fully cover CDA credential costs; 92% offer tuition assistance.
  • Nearly all offer in-house training, external coursework, coaching, and mentoring.

These investments build stable, skilled teaching teams and strong child–family relationships.

MYTH #3

For-profit providers use accreditation to mask lower quality.

FACT: Accreditation reflects quality beyond minimum licensing standards. ECEC results show:

  • 91% exceed licensing requirements for health and safety.
  • 83% exceed professional development requirements.
  • Many exceed state standards for facilities and materials.
  • 2,700+ centers accredited by NAEYC or Cognia; 75% of those accredited hold multiple accreditations.

These voluntary commitments demonstrate sustained investment in high-quality early learning.

MYTH #4

For-profit providers misuse public funds and should be excluded from publicly funded programs.

FACT: ECEC members are strong stewards of public dollars.

Public funds most often support teacher and staff wages and benefits. Specifically, CCDBG and public Pre-K funds help cover tuition. Decisions about where to invest public resources should be based on quality, safety, and rooted in family choice - not based on provider ownership.

MYTH #5

For-profit providers oppose strong industry standards.

FACT: ECEC supports strong, consistent health and safety standards, including staff–child ratios.

In states with weaker ratios (e.g., up to 12:1 for two-year-olds), ECEC members adhere to stricter standards. Standards should apply to all providers, regardless of ownership.

MYTH #6

Acquisitions and closures reduce care availability.

FACT: With a national shortage of child care, ECEC providers stabilize and expand supply:

  • Acquisitions preserve existing capacity in communities, and companies often make significant investments in staff,
    quality of facilities, materials, and other programmatic aspects to improve quality for families.
  • Members invested over $100M in new centers in 2024.

ECEC members expand access by maintaining existing programs and building new ones.

MYTH #7

For-profit providers primarily serve middle- and high-income families.

FACT: Over a third of ECEC centers serve children receiving subsidies through CCDBG.

Subsidy enrollment varies by state, but ECEC members serve a significant share of all subsidy-eligible children in several states, including 31% in Virginia and 23% in Minnesota.  

ECEC providers also maintain strong participation in public pre-K programs throughout the states where they operate, serving over 32,000 children.

MYTH #8

Franchise arrangements mirror private-equity structures and reduce quality.

FACT: Franchise models give small-business owners proven, research-based operating systems — curriculum, training, business tools, marketing — and often provide stronger benefits and development opportunities for staff. This support reduces administrative burden and helps leaders focus on children and families.