The effectiveness of parent choice plans requires that schools-for-profit be given an equal opportunity to compete with government and nonprofit schools in the educational marketplace. Little information is available about schools-for-profit because most states do not gather separate statistical data on that category. However, the following characteristics can be derived from case studies that include evaluations of the Sylvan Learning Center, Huntington Learning Systems, and the Encyclopedia Britannica: (1) many elementary schools-for-profit offer day care programs as an add-on service; (2) policy decisions are made with regard to profitability; (3) the largest group of schools-for-profit serves the handicapped or disabled; (4) college counseling services are emerging in the for-profit sector as a result of parent dissatisfaction with high school counselors; and (5) out-of-school educational services, such as summer camps and music lessons, comprise a significant share of the for-profit market. The following advantages of schools-for-profit are discussed: (1) the producers have a direct personal stake in increasing productivity; (2) they are more responsive to parental inquiries, needs, and interests; (3) instructional services can be eliminated, modified, or added much more expeditiously than in public schools; (4) they are free from the restriction of state regulation and prescription intended to maximize teacher benefits; (5) they reduce the litigation costs of public education; (6) they provide an accurate guide to parental preferences; (7) they are responsive to changes in market conditions; and (8) they provide students with direct exposure to the principle of the generation of wealth. (FMW)