Kidding Around Kids aren't just our future--they're fueling a billion-dollar market that has nowhere to go but up.

Everywhere you turn these days, there's something aboutGeneration Y. You've read enough studies about this new wave ofkid consumers to know they're the hot new market, andyou're excited because you think you have a good grasp of whatthey want.

But do you? The one thing you must understand about theboomers' children's market: This group, the "echoboom," is growing up in very different times and,consequently, has very different needs. It's not enough to handthem a Barbie and a box of Legos, or sit them in front of a guy ina dinosaur suit. Kids today are more sophisticated than that.They'd rather surf the Net or chat online, play the newestNintendo 64 game, or see the latest sci-fi action flick."There's a lot going on in our society that's reallydriving [the market]," says Peter Sillsbee, senior projectdirector of the Roper Youth Report at Roper StarchWorldwide. "Kids today are growing up in single-parent homesor homes where both parents are working. The percentages for bothhave actually doubled over the past 25 years."

As a result, kids now have more influence over family purchases.With their own hectic schedules to juggle, parents rely on kids tobe part of the decision-making process. With so much access toinformation right at their fingertips, today's typical kids arealso a lot more knowledgeable about the products on the market,from clothes to technology.

Fortunately for franchising, the echo boom is creating endlessopportunities. After all, the steadily increasing birth rateheightens the need and demand for services and products that caterto this new group of consumers.

One thing franchises have discovered is that kids expect thesame things from products and services as adults--but on their ownlevel. In response, children's franchises are changing andcreating programs to accommodate this new group by combining fun,technology and learning so children feel they have something alltheir own.

Kid-related franchises deserve an "A" for adapting tocustomers' needs. During the past several years, computertraining centers have appeared, while many other learning centersare incorporating computers into their curricula to keep up withthese tech-savvy tykes. Fitness programs are constantly creatingnew routines to keep up with industry trends and children'sneeds. The Gymboree Play Program has strengthened its brand byrevamping its image with strong marketing and new programs andequipment. Here, the Gymboree Play Program and a few other"booming" businesses show how they're catering to thechildren and parents of the 21st century.

Hit The Books

According to the 1998 Roper Youth Report, 84 percent ofchildren ages 8 to 12 agree it's cool to be smart. ForgetBeavis and Butthead--kids today are realizing it pays to be thenext Bill Gates.

Little Scientists is a learning program based in Ansonia,Connecticut, that takes a hands-on approach to teaching science tochildren. Such a combination of kids and science is a dream cometrue for John Sullivan, a Little Scientists franchisee inWethersfield, Connecticut.

After years of being frustrated with his job at a nuclearutility company, Sullivan, 48, evaluated other career options anddecided a franchise concept that incorporated his love for bothscience and children was the way to go. "I've seen andheard things from parents and program administrators that confirmthis concept is excellent," says Sullivan, who opened hisfranchise in August 1998.

Even on his worst day, Sullivan says he still hasn't longedfor his nuclear utility days. "After seeing what this programcan do, I believe there's a strong demand," says Sullivan."Every kid is naturally curious. Science opens the door forlearning in general because kids can relate it to other thingsthey're learning about. It also enhances overall creativity andimagination. Video games are great, but they don't leave muchto the imagination."

Bare Necessities

Most families work within a budget--some tighter thanothers--and welcome any opportunity to save a dollar. Ask anyparent: The costs of basic necessities add up. Once Upon A Child, achildren's resale system with more than 200 stores in NorthAmerica, helps families find what they need at reasonable costs bybuying and selling new and "gently used" children'sapparel, toys, equipment and furniture.

With two kids already and a third on the way, Once Upon A Childfranchisees Maury and Kim Purnell, both 31, know how importantvalue is to parents. "Part of what attracted me to thisconcept is that it's a good idea that works," saysPurnell. "There are large margins compared to most retailstores and not much competition."

Maury left his career in finance to take a chance on startinghis own business. After researching the various opportunitiesavailable, Purnell came across an article about Once Upon A Childand decided to contact its parent company, Minneapolis-based GrowBiz International. After just one visit, he was sold on theidea--the couple opened their first store in 1996 in Plano, Texas.They're projecting $1 million in sales for 1999 for that storeand have a second unit opening this fall.

Play Time

Baby boomers, who realize maintaining a healthy lifestyle isimportant, are passing this value on to their children. And whilehealth is a serious issue, it's also about fun and games atGymboree Play Programs.

Burlingame, California-based Gymboree Play provides a series ofprograms for both parents and children devoted to the physical,emotional and social development of children. The more than 409franchised Gymboree Play Program sites in 10 countries share acommon mission: to help maximize childhood development during thecritical years from birth to age 4.

Don and Adrian Becker opened their first Gymboree Play franchisein March 1982. When they purchased the franchise, the young coupleknew it was the perfect business for them: They both had strongeducational experience and Don also had a solid musical background.That provided them with the necessary tools to teach children andparents through play and music.

"It's a joy to open my office door and see thesechildren and know we're doing the right thing," saysAdrian, 50. "We can't think of any other [business] wewould have been happier in." With three Gymboree Playlocations in California's San Fernando Valley, the Beckersproject 1999 sales of $600,000.

The couple warns that the program isn't designed to be ababy-sitting service--parent participation is required. Of course,they realize parents can't always spend the time they'dlike with their children, so the Beckers offer classes on weekendsand evenings to accommodate parents' hectic schedules.

"Look at the world around us--it's frightening in manyways," says Don, 50. "As parents and children have lessand less time together due to work schedules and other pressures oflife, a program like Gymboree is the perfect beginning torestrengthen family ties."

Happy And Healthy

The children of today are definitely not the children ofyesterday. The slacker mentality isn't what's"in." Kids are much more optimistic and BIZ Experiencesialthan in past generations, and they're ready to take on newchallenges and experiences.

"These kids are turned on to information," saysSillsbee. "And there are great opportunities for businessesthat make parents feel their kids are learning something, whileappealing to what kids are interested in and giving them a sensethat they're contributing [to society]."

Unlike in the aftermath of the baby boom, when births in theUnited States dropped to 3.1 million per year in the early 1970s,the current birth rate isn't projected to fall off, but remainstable at around 4 million per year. Long-range projections by theU.S. Census Bureau show a rising number of births, increasing to4.2 million in 2010 and 4.6 million in 2020.

As parents continue to get busier, their time becomes morevaluable. It becomes even more important to find products andactivities that serve a useful purpose and allow boomer parents tospend quality time with their kids. Although times change andpopulation numbers fluctuate, one thing remains constant: Parentsjust want what's best for their kids. And businesses of the21st century are sure to play a more significant role than ever inhelping parents achieve that goal.

Looking for more information on kid-focused franchises? Checkout our comprehensive listing of opportunities at http://www.entrepreneurmag.com/franchise500/kidfran.html

Contact Sources

Gymboree Play, (800) 222-7758; Little Scientists, 178Church St., Wethersfield, CT 06109

Once Upon A Child, (214) 692-3521, alicorinv@aol.com

Roper Starch Worldwide Inc., (212) 455-4958