How to buy a daycare in New Brunswick: licences, ownership rules and what transfers

New Brunswick’s Early Childhood Services Act sets the rules for anyone who wants to buy a daycare in the province. Subject to the small-group exceptions in section 4(2), the Act says no person may operate a facility unless that person holds a licence, and the Minister issues it. This page quotes the Act as consolidated to June 30, 2026. The Department of Education and Early Childhood Development runs licensing and the arrangements for designated facilities. Because a licence cannot be passed from seller to buyer, a purchase is really two things: buying the business and getting your own licence. This page covers New Brunswick’s rules only.

Who may apply and who may not transfer

Section 4(1) of the Act says that, subject to subsection (2), no person shall operate a facility unless that person holds a licence; subsection (2) lists small groups of children, counting the operator’s own, for whom no licence is required. Section 5(3) says no individual under 19 years of age may apply for a licence. Section 5(4) says that, for greater certainty, only the actual operator may be the applicant for a licence to operate a facility. So a buyer who will run the centre must be the applicant, not a seller or an intermediary applying on the buyer’s behalf. Section 8 then says a licensee may not transfer or assign a licence to another person. Together, these rules mean the seller’s licence is not something you can buy.

Changes in directors or partners

If you buy the company that holds the licence, the Act still has a notice rule. Section 7.1 says that if a licensee that is a corporation, unincorporated association, partnership or limited partnership has a change in directors, partners or general partners, the licensee shall notify the Minister in writing within 15 days after the change. The licensee must also submit, within 30 days after the change, all the documents for the new directors, partners or general partners that the licensee would have been required to submit when applying for the licence. Plan who will sign and gather those documents before closing.

Licence terms and designation

Under section 6, the Minister may impose terms and conditions on a licence, and a licence is issued for a term of no more than three years. Section 15.1(6) says a designation of a facility as a designated facility expires at the end of the term of the licence unless the licence and the designation are renewed. If the centre you are buying is designated, ask the seller where the licence is in its term, and ask the Department whether the designation will be considered again when you apply, since the designation does not outlast the licence on its own. Section 15.1(1) lets a person apply to have a facility designated when applying for a licence under section 5.

Designated spaces and the offence provision

The Department’s information for operators says any changes to designated spaces must be approved by the Department of Education and Early Childhood Development before the changes are made. The same page lists the numbers of children, including the operator’s own, that may be cared for without a licence, and says operating a childcare service over and above those numbers without a licence is an offence under subsection 60(2) of the Act. Separately, section 6(4) says a licence must indicate the maximum number of children who may receive services at the facility. Compare actual enrolment with that number, and ask the Department what it will require to approve your operation of the existing spaces.

Section 6 also lets the Minister set terms and conditions, so a new licence issued to you may not read exactly like the seller’s. Ask the Department what it will look at when you apply as the actual operator. If you plan to borrow for the purchase, the Canada Small Business Financing Program is a federal program that shares risk with lenders; ask your lender whether a daycare purchase fits its requirements and how the licence timing affects the loan.

What to ask the seller for

• The current licence, with its term, its terms and conditions and the date it expires.
• Whether the facility is designated, and the Department’s written approval of any change to its designated spaces.
• If the licensee is a corporation or partnership, a list of directors or partners and any notices already sent to the Minister.
• The licensed enrolment numbers and the actual enrolment, so you can compare them with the maximum number shown on the licence.
• The seller’s plan for its CRA payroll account: the CRA’s page on selling a business says that if the business being sold has employees, the seller must close the payroll account. Ask your accountant how that applies to the structure you choose.

Browse daycares for sale, and read buying a daycare business in Canada for the national picture before you speak with the Department.