Buying or selling an existing Tiny Hoppers daycare franchise in Ontario runs into a hard rule most other franchise resales don't face: a childcare licence under the Child Care and Early Years Act does not transfer with a change of ownership, so the incoming operator has to secure its own licence, and CWELCC funding-agreement continuity has to be worked through alongside it. Timing the resale around Ministry approval is usually the real critical path, not the franchise consent itself.
Tiny Hoppers resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and terms, conditioned on franchisor consent, licence timing, and CWELCC funding-agreement treatment, not just financing.
1–2 weeks†The franchisor reviews the buyer and deal terms, and may exercise a right of first refusal to take over the centre itself instead of approving your purchase.
3–6 weeks, typically†Arthur Wishart Act disclosure may still be required even where the deal is framed as a private resale — Ontario courts read the resale exemption narrowly, so this gets confirmed early rather than assumed.
assessed early, in parallel†Getting to closing
Landlord's consent to assign, alongside confirming the premises meet current Ministry space and safety requirements for the new licence application.
4–10 weeks†The incoming operator applies for its own CCEYA licence, works through CWELCC funding-agreement continuity, and completes required training and staff-ratio planning.
often the longest single step — 8–16 weeks†Funds, keys, and the new franchise agreement change hands once the new licence and funding-agreement status are confirmed.
1 day, once conditions are met†Founded 2005 in Ottawa, ON; tinyhoppers.ca/canada-daycare-franchise/ is a dedicated Canadian daycare franchise page.
Founded in Ottawa, ON; locations across Ottawa, Kingston and the Greater Toronto Area.
This is the first real decision in a Tiny Hoppers resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The centre's assets — leasehold improvements, equipment and furnishings, enrolment records, and the existing franchise agreement, subject to consent — but not the CCEYA licence itself. | The shares of the corporation holding the existing licence and CWELCC funding agreement — which can preserve licence continuity that an asset sale can't. |
| Franchisor consent & ROFR | Required for the specific centre changing hands — often the pacing condition on the whole deal. | Required for the change of control itself, with the franchisor reviewing who is actually taking over. |
| CCEYA licence & CWELCC funding agreement | A CCEYA licence is not transferable — the new operator applies for its own licence, and CWELCC funding-agreement treatment is negotiated as part of the deal. | The existing licence and CWELCC agreement generally stay in place, since the licensed corporation itself doesn't change — a key reason share deals get considered more often for daycare franchises than for most other sectors. |
| The lease / premises | Needs the landlord's consent to assign, alongside confirming the premises meet current Ministry space and safety requirements. | Usually stays in place unless the lease has its own change-of-control clause. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
| Typical use | Common where licence continuity isn't essential or the buyer is comfortable with a new-licence timeline. | More often considered specifically to preserve an existing licence and CWELCC funding agreement without restarting Ministry approval. |
The centre's assets — leasehold improvements, equipment and furnishings, enrolment records, and the existing franchise agreement, subject to consent — but not the CCEYA licence itself.
The shares of the corporation holding the existing licence and CWELCC funding agreement — which can preserve licence continuity that an asset sale can't.
Required for the specific centre changing hands — often the pacing condition on the whole deal.
Required for the change of control itself, with the franchisor reviewing who is actually taking over.
A CCEYA licence is not transferable — the new operator applies for its own licence, and CWELCC funding-agreement treatment is negotiated as part of the deal.
The existing licence and CWELCC agreement generally stay in place, since the licensed corporation itself doesn't change — a key reason share deals get considered more often for daycare franchises than for most other sectors.
Needs the landlord's consent to assign, alongside confirming the premises meet current Ministry space and safety requirements.
Usually stays in place unless the lease has its own change-of-control clause.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
Common where licence continuity isn't essential or the buyer is comfortable with a new-licence timeline.
More often considered specifically to preserve an existing licence and CWELCC funding agreement without restarting Ministry approval.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Tiny Hoppers centre changing hands between one buyer and one seller, with straightforward licence continuity and a standard franchisor consent process.
Start my file →A resale where licence timing, CWELCC funding-agreement treatment, or the asset-versus-share choice needs to be worked through before terms are final, or an operator selling several centres as one operating company.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
No. A CCEYA licence is not transferable on a change of ownership — the incoming operator has to apply for and be issued its own licence, which is a Ministry process separate from, and often longer than, the franchise consent itself.
Because a share sale keeps the same corporation — and therefore the same existing licence and CWELCC funding agreement — in place, which can avoid restarting the licence-application process that an asset sale would trigger. Whether that's the right structure for your deal depends on the specifics, and it's worth assessing early.
This has become one of the deal-defining issues in daycare resales. How the funding agreement is treated depends on the deal structure and the Ministry's own requirements, and it's assessed early — not left until after an offer is signed.
Enrolment records and waitlist information are typically part of what's included in an asset sale, but parent consent and privacy obligations around children's records need to be handled correctly, and continuity of enrolment isn't guaranteed just because the name on the door stays the same.
Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in the resale can trigger a full disclosure requirement regardless of how the deal is framed.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Tiny Hoppers or its franchisor.
Tell us about your Tiny Hoppers resale — we'll point you the right way and confirm the cost in writing before any work begins.