National brand operators reportedly outperform independents by 300 to 500 basis points of margin — and the gap is widening. Understanding why explains where the industry is headed.
Where the advantage comes from
Brand operators like Bright Horizons, KinderCare, and Learning Care Group benefit from curriculum IP, digital enrollment, employer-funded revenue channels, and purchasing scale. Each shaves cost or adds revenue a single independent can't match.
Bright Horizons' 2025 results — double-digit revenue growth and expanding margins, powered by back-up care utilization — show the model's operating leverage in action. Our Year-End 2025 report noted this margin gap is widening, not narrowing.
What it means for independents
The widening gap is precisely why so many independents are selling to or being absorbed by larger platforms. For many owner-operators, the rational move is to harvest the value they've built while the buyer pool is deep and capital is active.
It also means an independent's real estate may be worth more to a consolidator that can run the center at platform margins than to another independent — a key insight when choosing a buyer.
Turning the trend into a strategy
If you're an independent owner, the margin gap is a reason to think seriously about timing and buyer type. The right consolidator may pay more for your business — or your building — than the open market.
We help independents understand their options and capture full value in a consolidating industry.
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