CHANGING OWNERSHIP OF A CHILD CARE LEARNING CENTER (CCLC)
The Georgia Department of Early Care and Learning (DECAL) is here to support you through the change of ownership process.
Applicant Responsibility for Compliance
Submission of an application does not relieve an applicant of the responsibility to comply with all applicable Child Care Services (CCS) statutes, rules, regulations, policies, and requirements. Applicants are responsible for ensuring that all licensing requirements are met at the time of application and throughout the licensing process.
Any approvals, variances, waivers, exemptions, allowances, corrective action plans, or other licensing determinations issued to another individual, entity, location, or licensee are not transferable unless expressly authorized by Child Care Services. Applicants must independently demonstrate compliance with all applicable requirements before a license, permit, approval, or other authorization may be issued.
Child Care Services reserves the right to require correction of any non-compliant condition and may deny, suspend, restrict, or withhold approval of an application when applicable licensing requirements have not been satisfied.
A Change of Ownership is required when:
- A new owner buys an existing child care business, building, or property that continues operating.
- The current owner changes the business type (for example, from Inc. to LLC).
- The current owner has created a new corporation or LLC.
If your program meets any of these conditions, complete the Change of Ownership application online through your DECAL Koala account.
Need an account? Visit DECAL Koala at www.decalkoala.com and follow the setup instructions.
Child Care Services (CCS) - Guidelines for Sellers and Buyers
CHILD CARE SERVICE (CCS) - GUIDELINES FOR SELLERS AND BUYERS
Permit Issuance
DECAL recognizes a change of ownership only after issuing a permit. This permit allows the new owner to operate until the final license is granted.
- The new owner must submit all required documents.
- No care for children is allowed without a permit.
- The current program stays open and responsible until the permit is issued.
Negotiation and Closing
The buyer and seller handle all business terms. DECAL will:
- Issue a permit once closing documents are received.
- Close the seller’s license and DECAL Koala account after the sale is finalized.
New Owner Responsibilities
- Submit all required documents.
- All application-related communication will be with the new owner.
- Comply with all current licensing rules and regulations. Previously grandfathered provisions do not transfer to the new owner.
- Note: ‘Grandfathered’ means that under previous rules, some owners were allowed to keep operating without meeting new requirements. These exemptions are not transferred to new owners.
Closing DocumentsUpload closing documents to the Change of Ownership application on or after the sale date. Acceptable documents include:
- A formal closing agreement signed by both parties, or
- A notarized letter from the seller confirming the sale and date.
Record Check Clearance
When the permit is issued, all record check clearance letters transfer to the new license number. Staff will be notified automatically.
Questions? Contact the Records Unit at 855-884-7444 or CRC@decal.ga.gov.
Permit and Licensing Process
Ownership changes follow these steps:
- Permit – Valid for 21 days; allows operation while completing requirements.
- Temporary License – Extends authorization beyond the permit period.
- Final License – Full license to operate under DECAL rules.
Once a permit is issued, programs can apply for DECAL resources. An Initial Licensing Study visit will be scheduled during this process.
Application Submission
Submit all information and documents promptly to avoid delays or denial. Complete applications online through the New Owner’s DECAL Koala account.
Need Help?
Email CCSASUCOO@decal.ga.gov or ChildCareOwnership@decal.ga.gov for assistance.
Don’t forget to complete the online orientation course via your GAPDS account!
Georgia’s Pre-K Program Change Request Process
GEORGIA'S PRE-K PROGRAM CHANGE REQUEST PROCESS
Georgia’s Pre-K Program Change Request Process
Georgia’s Pre-K Program is generally non-transferable. If a center is sold, all change of ownership requirements must be completed before the Pre-K program can be considered for transfer. Eligible entities may apply for transfer as outlined in the Georgia’s Pre-K Program Providers’ Operating Guidelines.
Important Notes:
- Requesting Pre-K services does not guarantee funding. DECAL makes all funding decisions at its discretion.
- Payments are placed on hold during the change of ownership process. A new owner should not assume automatic approval when making business decisions.
- The Pre-K Division will notify the new owner about continuation status after a valid permit is issued by Child Care Licensing.
If Approved:
- The payment hold will be released once a Grant Agreement is finalized.
- The new owner will continue Pre-K services in accordance with the Georgia’s Pre-K Providers’ Operating Guidelines.
- All equipment, supplies, and materials remain with the program in the Pre-K classroom(s).
- The new owner agrees to the current grant agreement conditions.
For more details, refer to the Operating Guidelines or email prekbusiness.support@decal.ga.gov.
Quality Rated - Change of Ownership Information
QUALITY RATED - CHANGE OF OWNERSHIP INFORMATION
Quality Rated Data Transfer Process
If your program is going through a Change of Ownership, you may be able to transfer Quality Rated (QR) data if the seller has a current and valid rating. Transferable data includes:
- Current rating and expiration date
- Cohort selection
- Portfolio in progress
Important:
- A program’s Quality Rating is not automatically transferable.
- The new owner must complete a Change of Ownership application in their KOALA Self-Service portal.
- Quality Rated staff will review licensing history, staff and leadership retention, program standing, and anticipated changes before approving a transfer.
- A new owner interview is required before a decision can be made regarding the rating transfer.
- Approval is not guaranteed, and QR benefits do not apply until the rating is officially transferred to the new license number.
If the rating is not transferred:
Programs planning to participate in CAPS may still qualify for Quality Rated Provisional Status, which allows continued access to CAPS Scholarships while working toward an initial rating under the new license.
Tips to Avoid Delays:
✔ Do not create a new QR account during the transfer process.
✔ Do not request CAPS/QR Provisional Status if you want to transfer QR data. If the transfer is denied, you will be guided through the provisional process.
Need Help?
Contact the Quality Rated Help Desk at QualityRated@decal.ga.gov or call 1-855-800-7747 for the QR Data Transfer Application Form.
CAPS – Change of Ownership Information
CAPS - CHANGE OF OWNERSHIP INFORMATION
CAPS Eligibility
To participate in CAPS, new owners must:
- Have a Quality Rated status (transferred or provisional).
- Receive a permit, temporary license, or continuing license from Child Care Services (CCS).
- Complete and have an approved CAPS enrollment application.
CAPS Enrollment Process
- Apply for a Change of Ownership and receive the required permit or license from CCS.
- CAPS Provider Relations Enrollment Services will contact the new owner after the Permit has been issued. For any questions you may contact CAPSProviderSupport@decal.ga.gov.
- Receive a GACAPS welcome email from Provider Relations to start the CAPS application process.
- Once approved in GACAPS, scholarships will transfer to the new owner based on completion of Quality Rated and CCS licensing requirements.
CAPS Enrollment and Payments
- CAPS enrollment and payments depend on meeting both Quality Rated and CCS licensing requirements.
- Once the new owner receives a permit, temporary license, or continuing license, the seller cannot provide care or receive CAPS payments.
- CAPS payments received by the seller before permit or license issuance should be negotiated between buyer and seller.
For more information, visit www.CAPS.decal.ga.gov.
Nutrition – Change of Ownership Information
NUTRITION - CHANGE OF OWNERSHIP INFORMATION
How to Apply for CACFPCACFP agreements cannot be transferred. New owners must apply directly with DECAL or through an approved sponsor.
Option 1: Direct Agreement with DECAL
- Attend Training – Complete a 2-day CACFP Program Training to access the online application.
- Submit Application – Provide a completed application and all required documents to DECAL.
- Operate and Document – Run the CACFP program and maintain required documentation for at least one month.
- Pre-Operative Visit – Pass a satisfactory pre-operational visit.
To register for training, call 404-657-1779.
Option 2: Sponsorship with an Approved Administrative Sponsor
- Find a Sponsor – Use the Search for Nutrition Programs tool on the DECAL website to locate approved sponsors.
- Pre-Approval Training – Sponsors will provide training and application materials.
Finance Requirements for USDA CACFP Programs
FINANCE REQUIREMENT FOR USDA CACFP PROGRAMS
For New Owners Intending to be a Sponsor
To set up payments for CACFP sponsorship, new owners must:
- Complete Required Forms
- Supplier (Vendor) Change Request Form
- Taxpayer Identification Number (TIN) Verification Form
- Provide Banking Information and Verify Payment Setup
- These forms ensure payments are made via electronic disbursements (ACH) to your bank account.
- Payments will only be made to the entity that owns the Child Care Learning Center license.
RESOURCES
Change of Ownership Documents