The purchase of a childcare business can be very rewarding, but before you begin you need to ensure you have all the legal aspects of the business set up so you can start operation smoothly. This article will discuss three areas you need to consider when purchasing a childcare business.


As there are strict laws and regulations in place, be sure you know what the rules are in operating a childcare business in the area. Make the appropriate enquiries with the vendor about any zoning issues and see whether you need to update any official documentation during the negotiation of the sale. Have a look at the lease agreement of the property and understand what your obligations are. It may be that you cannot change any fixtures in the space or that you would need to get development approval to change any aspect of the premises. Speak to both the vendor and landlord or agent if you have ideas about how the premises should look in order to see if it is viable. Check out the profile of the area where you wish to operate and see if it is one suitable for the success of a childcare business. In some states and territories a disclosure document is required from the landlord so you have an understanding of the foot traffic or exposure the premises has to the public.

Licences and Qualifications

Running a childcare business means you need to have the appropriate qualifications. As the laws differ between the states and territories, be sure you contact the Department of Education so you are aware of what your legal obligations are. Speak to the vendor to see they have the appropriate licences in place, if they can transfer the licence to you or if they can assist in allowing you to apply for one yourself.

Workplace Safety

Once you start running the business you need to be aware of the occupation, health and safety issues you need to comply with, not only for the children, but also for the workers you will have on board. If this is your first time managing a childcare business, speak to the vendor to see if you can have a training period included in the purchase of the business. A training period will allow you to pick up knowledge in practice by seeing exactly how the business is run before you take over ownership.


Many people decide to start a childcare business on their own. A contractual arrangement between you and the vendor will help you understand your obligations as the new owner of a childcare business. This will provide you with a detailed process of how the sale will be settled. Our team of business lawyers are specialists in the area of the sale and purchase of businesses and can assist in the entire process, right up until settlement!

Kristine Biason
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