Buying a Daycare in BC: Licensing, Valuation & Due Diligence

Daycares have become one of the most searched-for businesses in BC, and for good reason: demand for licensed child care across Surrey and the Fraser Valley is consistently high. But a daycare is not like buying a restaurant or a store. It is a licensed, regulated service built around children's safety, and the purchase works differently because of it. This guide covers what buyers should know before buying a daycare in BC.

Licensing Is the Starting Point

Child care facilities in BC are licensed under the Community Care and Assisted Living Act, and licensing is administered by regional health authorities — in Surrey and the Fraser Valley, that is Fraser Health Licensing.

The key point for buyers: a child care licence is issued to a specific operator for a specific facility, and it generally does not simply transfer with the sale. In most cases the new owner needs to apply for and obtain their own licence before operating. That means the licensing timeline — inspections, documentation, and staffing requirements — should be built into the purchase from the start. Confirm the current process with Fraser Health Licensing before writing an offer.

What Determines a Daycare's Value

- Licensed capacity — the number and types of spaces the facility is licensed for (infant/toddler, 3-to-5, school-age) - Enrolment and waitlist — current occupancy and how reliably spaces fill - Provincial funding participation — many BC centres participate in fee-reduction programs that affect revenue and parent fees; understand the program terms that apply to the specific centre - Staffing — qualified Early Childhood Educators (ECEs) are essential, and staff continuity is often the biggest risk in a sale - The premises — whether the facility owns its building or leases it, how long the lease runs, and whether the space meets licensing requirements for the current capacity

Real Estate vs. Lease

Some daycare sales include the property; many operate in leased commercial or residential-zoned space. If the centre leases, review the term, renewal options, and the landlord's consent to assignment carefully — a daycare without a secure location is hard to value. If the property is included, zoning and permitted-use confirmation with the municipality is essential.

Questions to Ask Before You Buy

- Is the facility currently in good standing with Fraser Health Licensing, and what do recent inspection reports show? - Which provincial funding programs does the centre participate in, and what are their terms for a new operator? - Will key staff and the manager stay through the transition? - What do two to three years of financial statements show, and do they reconcile with enrolment records? - Does the lease or the property support the licensed capacity for the long term?

Related Guides

- Daycares for sale in BC — current opportunities and valuation factors - Businesses for sale in BC — all business types - Selling a business in BC

Thinking about buying or selling a child care centre in Surrey or the Fraser Valley? Get in touch or call (604) 679-1304 for a confidential conversation.

*General information only — not legal, financial, or licensing advice. Licensing requirements and funding programs change; confirm current rules with Fraser Health Licensing and the Province of BC.*