Day care is a very competive, regulated, labor intencive industry. You have to compete with people running low-cost day care from there home, YMCA running subsidised, to Kindercare's to corporations that have in-house centers. The people who use day care are working mothers' (single dads) whose wages are good but not upper mangament. Survey your area and find the cost of other day cares, run the numbers and find the break even point. Also find if most have plenty of openings, or if they are full up. If "the guy" just wants 6 months ($30k) of upfront lease payments, it sounds resonable. If you don't think so, rent a generic building and put in $30k of remodleing costs.
Feb 24, 2012