- Agency
- Texas Health and Human Services Commission, Child Care Regulation
- Paperwork
- A change of ownership request or a new permit application, plus background checks for the new owner
- The clock
- Contact the agency before you sign, since approval can set the closing date
Watch for: Closing before the agency has approved the new owner. The center may not be allowed to operate under the buyer.
The permit follows the operator
In Texas, licensed child care is regulated by the Child Care Regulation division of the Health and Human Services Commission. The permit names the operation and the people responsible for it.
When the owner changes, the agency treats that as a change it must review. In many sales the buyer needs to apply for a permit of their own.
Ask the right question early
State rules separate a change in ownership from a change in the legal entity, and the paperwork differs between them. The agency handbook has a section on handling changes in an operation, including ownership.
Call the agency, describe the deal, and ask three things: what the buyer files, what the seller files and whether the center can stay open during review.
Background checks
New owners and other people who have contact with the children go through background checks. Allow time for those results, since staff cannot begin work until they clear.
Current employees who stay on may need their records updated under the new operator. Ask what the agency requires for each person.
Parents, contracts and money
Enrollment agreements, tuition deposits and subsidy payments all need a plan. Decide who holds prepaid tuition at closing and how parents hear about the change.
Tell families only after the deal is firm. Staff learn first, then parents, with a clear message that care and teachers continue. Our note on telling your staff about a sale shows how.
Inspections and the building
A clean inspection history helps your price. The buyer may also need a fire marshal or building sign off for the space, and a landlord approval for the lease.
Buyers price all of this in. See the child care center pricing page for how enrollment and staff shape the number.
Money and timing
Expect the review to take time, and plan your closing date around approval, not the other way round. Some sales are structured with a short signing to closing gap, so the buyer can apply while the center keeps operating under the seller.
Next step
- Pull your current permit and last two inspection reports
- List staff, hire dates and training records
- Gather enrollment and tuition records
- Call the agency before you name a closing date
When you are ready, ask for a free value check.
This page is general information and not tax or legal advice. Rules change, so confirm every step with your attorney and the agency.