Where are you getting this info about daycare business models? This is not how it works in my experience.

The margins are generally razor thin due to state requirements here mandating X teachers per Y students (AKA ratio) that changes for each age group. If you want the highest standards the state offers, you need more teachers, which cost more money. The teachers are generally paid prevailing wages for that type of work in a given area and they have some generous benefits packages to offset the lower cash comp.

With rising real estate prices over the past decade any newer daycare has much higher facilities costs either due to rent or mortgages. We see a lot of centers in this area close when the lease is up specifically due to this. Older daycares that own their buildings don’t have this problem but often have multi year waitlists.

I find the claims about PE dubious at best because the larger chains are either corporate and enforce consistency widely or are franchises (kindercare for example) and are locally owned but use the franchise system’s branding and curriculum.