Imagine Early Learning Centers Becomes 100% Employee-Owned

New York–based early education provider transitions to full employee ownership through an ESOP, setting a new model for stability in childcare

NEW YORK--(BUSINESS WIRE)--Imagine Early Learning Centers, a leader in early childhood education across the New York metropolitan area, today announced that it has transitioned to 100% employee ownership through an Employee Stock Ownership Plan (ESOP), becoming the nation’s first and only fully employee-owned, multi-site childcare organization.

The milestone marks a transformational shift not only for Imagine but for the childcare industry at large, offering a new, business-forward model for stability in a sector long challenged by workforce turnover, rising costs, and underinvestment. Imagine currently operates 12 centers across the New York metropolitan area and employs more than 220 educators and staff, all of whom are now employee-owners.

As the childcare industry continues to face thin margins, workforce instability, and increasing operating expenses, many providers turn to private equity for financial security, often at the expense of employee retention and program quality. Imagine’s transition to employee ownership offers a different path: one that aligns long-term financial sustainability with educator investment, institutional knowledge, and quality care.

The announcement comes at a pivotal moment for childcare in New York City, as the Mamdani administration prioritizes improving access and affordability across the five boroughs. With more than 30 years of operating experience in the region, Imagine believes employee ownership can serve as a scalable blueprint for how childcare providers can grow responsibly while strengthening their workforce. Imagine's commitment to its employees should also remind policy makers that any industry solutions must take into account the critical role of the provider.

How Employee Ownership Translates Into Real Change

With the transition to full employee ownership, Imagine is deepening its commitment to educator voice, shared decision-making, and long-term financial participation.

Educators now have meaningful authority in shaping their workplaces, including:

• Classroom-level ownership: Each classroom manages its own monthly discretionary budget, bringing Imagine’s guiding principle – “This classroom is teacher-owned” – to life.
• Ongoing feedback and dialogue: Anonymous comment boxes, staff meetings, focus groups, and bi-weekly office hours with CEO Laura Tulchin and the Human Resources team.
• Formal representation structures, including:
  • The Ownership Association: a staff-led group with its own annual fund allocated at members’ discretion.
  • An elected Ownership Representative who participates in leadership and board-level conversations.

Financial Participation and Workforce Stability

Employee ownership also delivers measurable financial benefits. All eligible Imagine employees participate in the ESOP, with individual ownership accounts updated annually based on tenure and overall company performance.

• The average Imagine teacher earns $48,000, well above New York City’s average childcare wage of $29,840, according to city data.
• The average fully vested employee-owner at Imagine is 43 years old and has been with the organization for more than eight years.
• ESOP funds become available upon retirement or departure, supporting long-term financial planning and security.

These structural and financial investments have resulted in a more stable and experienced workforce, directly benefiting children and families:

• Annual turnover at Imagine is approximately 20%, roughly half the national average for the childcare sector.
• 55% of leadership roles are held by employees who have been with the organization for ten or more years, reflecting a strong commitment to internal growth and career advancement.

Changing an Industry That Has Underserved Its Workforce

For decades, early childhood educators have been undervalued despite doing work that is foundational to families, communities, and the economy. By giving educators true ownership, financially, professionally, and structurally, Imagine is demonstrating that the childcare sector can operate differently.

Employee ownership strengthens retention, builds clear career pathways, and ensures that decisions are guided by those closest to children and families.

“Our hope is that Imagine becomes a blueprint for the future of early childhood education,” said Laura Tulchin, CEO of Imagine Early Learning Centers. “Employee ownership is about both financial equity and social equity. It honors educators as the professionals they are while creating a resilient, engaged organization built for long-term growth.”

About ESOPs

An Employee Stock Ownership Plan (ESOP) enables a company to be owned by its employees rather than outside investors. Company shares are held in trust and allocated to individual employee accounts over time, allowing employees to build ownership as they continue working at the organization. Research consistently shows that employee-owned companies experience lower turnover, stronger engagement, and greater resilience during economic downturns.

About Imagine Early Learning Centers

Imagine operates high-quality early learning and childcare programs across the New York metropolitan area, serving infants through children age 5 in partnership with families, communities, and institutions. Grounded in play-based learning, educator expertise, and a culture of shared ownership, Imagine is devoted to nurturing children while investing deeply in the teachers and staff who make its mission possible.

https://imagineelc.com/