Childcare and Daycare Premises and Licensing Due Diligence in Alberta

1. Create the control schedule

Build one schedule for legal entity, licence number and holder, program type, address, approved rooms, age groups, licensed capacity, operating hours, outdoor-play arrangement, municipal approvals, lease or title, inspections and funding agreements.

Record document source, effective date, expiry, conditions, preparer, reliance and unresolved differences. Similar addresses, program names or historical approvals should not be merged without verification.

• Licence and holder
• Program and capacity
• Municipal approvals
• Rooms and outdoor play
• Premises rights
• Funding status

2. Verify the transaction-specific licence path

Review the proposed share or asset structure against Alberta's current facility-based licensing handbook. A corporate asset sale requires the new operator to obtain a new licence; the existing licence is not transferable.

A share sale keeps the same corporation as licence holder, but changes must still be reported and licensing staff may require checks or program updates. An existing licence does not prove that a buyer, new corporation or changed program may operate after closing.

3. Reconcile marketed and licensed capacity

Trace each marketed space to the current licence, program plan, approved room, age group and physical condition. Identify closed rooms, temporary variances, conditions, staged openings and proposed expansions separately.

Licensed capacity is not current enrolment, daily attendance or collected revenue. It also does not prove that the proposed staffing, age mix or operating hours can use the maximum simultaneously.

4. Review rooms, circulation and outdoor play

Compare approved plans with actual entrances, activity rooms, sleep areas, washrooms, handwashing, food areas, storage, offices, isolation, exits, accessibility, security and child/staff circulation.

Document outdoor-play ownership or lease rights, approved plan, area, access route, fencing, surfaces, equipment, inspection and competing use. The presence of an outdoor play area does not prove it is approved, controlled by the operator or adequate for the proposed program.

5. Verify municipal, building and fire records

Confirm the exact municipal use, district, development approval, conditions, building permits, occupancy, fire approvals and outstanding orders for the address and present configuration. Ask the municipality what a change of operator, layout, capacity, hours or program requires.

A listing statement, prior operation or landlord representation is not municipal confirmation. Calgary location approval and Edmonton Child Care Service rules are separate from Alberta childcare licensing.

6. Review health, food and sanitation evidence

Obtain AHS inspection reports and records for food service, sanitation, water, illness control and other applicable public-health matters. Reconcile findings, corrective action and current operating practices.

A posted inspection report is a dated record, not a guarantee of current condition. Food preparation, catered food and other activities may create distinct requirements that should be confirmed with AHS.

7. Rebuild enrolment and fee evidence

Reconcile registration agreements, attendance, invoices, credits, refunds, receipts and withdrawals using privacy-controlled samples selected with advisors. Segment evidence by program, age, schedule and period.

A waitlist is not contracted future enrolment. A registration record does not prove attendance or collection, and collected cash may include deposits or prepaid service obligations.

8. Verify funding rather than capitalizing history

Review the current affordability agreement, claims, payment records, eligible children, adjustments, audits and ministry correspondence. Ask the ministry how the proposed ownership structure, licence and capacity change affect eligibility.

Past grant or subsidy receipts do not guarantee future eligibility, rates, enrolment or payment. Keep a no-funding scenario visible until written transaction-specific confirmation supports another case.

9. Test staff and program dependencies

Map the program plan to staffing roles, certifications, schedules, responsible-person coverage, vacancies and recruitment. Identify individuals or arrangements whose departure would change permitted operation or capacity.

Employment continuity, certification status and workforce supports require separate verification. Do not convert a current roster into a buyer guarantee.

10. Review lease, title and landlord consents

For leased premises, review the complete lease for use, term, options, assignment, change of control, alteration, restoration, outdoor space, parking, operating costs, exclusivity, security and landlord consent. For owned premises, review title, registered interests, taxes, condition, environment and financing.

Confirm whether licences, permits, equipment, signs and improvements can remain through closing. A landlord's consent does not create regulatory approval, and regulatory approval does not create a lease right.

11. Protect sensitive records

Use aggregate records first and release identifiable child, parent and employee information only when necessary, lawful and secure. Record access, purpose, redaction, retention and return or destruction.

Have privacy counsel apply Alberta PIPA and any other applicable duties to the actual transaction. Commercial diligence does not require unrestricted copying of operational child records.

12. Convert findings into closing controls

Maintain an issues log with finding, evidence, consequence, professional owner, response, deadline and closing treatment. Link the licence, premises, funding, insurance, staffing, family communication and possession sequence so no party assumes another approval solves the dependency.

This guide is educational and is not a licence application, municipal approval, health inspection, fire review, privacy assessment, legal opinion, funding decision, appraisal or audit. Commercially does not approve childcare licences, premises, capacity, enrolment, grants or transaction structure.