Masoom Kids
Franchise Development Program
Snapshot on Industry & Masoom Kids
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There is a huge scope for penetration in Indian market for Pre-Schools
Key Takeaways: Primary Target Customers: Households with annual income in excess of Rs 2 lac/annum are the primary target customers Growth Potential: Out of estimated 55 lac preschoolers, only 12% are currently enrolled into the preschools Lower Penetration in Indian Market: Concept of pre-schools is still in nascent stage in India as compared to developed part of the world, hence it presents tremendous growth opportunities 3
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Organized pre-school is driving the growth “Robust growth ahead in underpenetrated pre-school industry”
Informal Education category: Pre-school segment is a part of the informal education category which primarily caters to children between two and four years Organized market set to grow: CRISIL research expects the share of the organized market to reach 34% in FY 16 from 11% in FY 10. Major drivers for this are expected to be rising awareness about pre-school education, big expansion plans of existing players and entry of more organized players in to the pre-school market
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Masoom Kids Overview
Masoom Kids
is a unique and innovative pre-school based out of Bhubaneswar, committed to deliver high quality of education programs that equip students with a solid foundation in integrated curriculum with technological savvy, methods, materials, and interactions needed to create the environment that leads to enriched learning opportunities for every child Fully Digital Method of Teaching. CCTV & online surveillance support
Salient Features
Theme & Integrated Based Curriculum. Admission support kit for each curricular Weekly/Monthly Interactive Method of Assessment Focus on Stage Exposure, Cultural, Art & Craft, Dance, Indoor & Out Door Activities Experienced & Inspiring Facilitators Specially Designed Life & Behavioral Skills Modules Only pre-school proving shine leadership program based on life skills and leadership skills Unique support by providing Shine parenting program for parenting workshops 5
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Masoom Kids Offerings
Regular Programs
Masoom-Group: 1.5 years to 2.5 years
Play Center: 2.5 years to 3.5 years
Masoom Junior (KG 1): 3.5 years to 4.5 years
Masoom Senior (KG 2): 4.5 years to 5.5 years
Masoom Smart Class: Age: 1.5 years to 12 years; Duration: Round the Year
After School Programs
Handwriting & Speaking Class : Age: 2.5 years to 8 years; Duration: Six Months Shine Leadership Program: Age: 4 years to 12 years; Duration: 3 Months
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Franchise Value Preposition
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Franchising Business Model
Franchise Format (Territory):
Franchise Format (Operations):
Area (sq. feet)
Single Unit Franchise
Franchise Owned Franchise Operated (FOFO)
2500 – 3000 sq. feet
Location
Locations in vicinity to target residential population, residential locations can be effective
%Royalty
8% on service sales
Exclusive Territory Rights
No. But, Area of Primary Rights (APR) for 5-10 km radius can be offered, without any other exclusive rights/privileges 8
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Recommendations for Franchise Business Model Marketing Cost
Franchise Fee
Discounting Policy
Contract Period
2% of revenues; 1 % each, for local marketing & centralized brand building 1.5 lac
Discounts are not recommended for Franchisee operations
4 + 4 years for both single unit and multi unit franchisee
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Estimated Investment & Returns
Area
Cost Breakup
Rs. 7 lac (approximately)
Franchise fee: Rs 1.5lac Furnishing & Improvements: Rs 2 – 2.5 lac Equipments & Misc Items: Rs 2 – 2.5 lac Launch Budget: Rs 50,000
Particulars Estimated Revenue
Estimated Returns
Project Cost
3,000 sq. feet
Y2 2,712,000
Y3 3,396,000
150,000 618,000 731,680 40,000 1,540,000
204,000 954,667 789,507 54,000 2,002,000
257,000 1,150,533 837,593 68,000 2,313,000
PBDIT Depreciation PBT Project cost
454,000 46,200 407,800 700,000
710,000 46,200 663,800
ROI (%) Estimated Payback (Years)
58% 1 Year 5 Months
95%
Expenses Royalty Employee Cost Operating Expenses Marketing Expenses TOTAL COST
Y1 1,994,000
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Y4 4,204,000
Y5 5,124,000
320,000 1,291,200 925,724 84,000 2,621,000
392,000 1,541,333 1,032,808 102,000 3,068,000
1,083,000 46,200 1,036,800
1,583,000 46,200 1,536,800
2,056,000 46,200 2,009,800
148%
220%
287% CONFIDENTIAL
Targeted Locations for the Rollout
Cluster 1 – Orissa (Capital & Tier 2 towns)
Year 1-3
Cluster 2 – Chhattisgarh, M.P. & A.P. + Telangana (Capital & Tier 2 Towns)
Bhubaneshwar
Cuttack
Raipur
Durg
Bilaspur, etc.
Rourkela
Brahmapur
Visakhapatnam
Guntur
Nellore, etc.
Hyderabad
Nizamabad
Warangal, etc.
Bhopal
Indore
Gwalior, etc.
Sambhalpur
Puri, etc.
Top cities towns in neighboring states (Non-Metros, Capital & Tier 2 towns)
Year 4 -5
U.P., Rajasthan, Haryana region Maharashtra, Gujarat region Other Clusters
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Franchisees with similar backgrounds desirable
Franchise with similar background are highly desirable Preferable Franchisee Partners Conversion of existing pre-schools
Professionals from education segment
Retired Professionals
Investors/Women Entrepreneurs
Essential Features of Preferred Franchisee Factor
Importance
Ability & knowledge to run the business
Very Important
Ease of Conversion
Important
Service Sales Capability Quality of Delivery
Factor
Importance
Customer Service
Very Important
Capital Resources
Very Important
Vision
Very Important
Very Important
Comfort Level with Franchisor
Important
Important
Network Strength
Important
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Franchisor’s Obligations Procurement of all types of goods e.g. books, dresses, equipments etc to be used for business operations for the Unit franchisee; Efficient vendor and franchisee management expected. Training programs on a regular basis for Unit Franchisees, teachers and the marketing team. Provision of all administrative forms & formats and Standard checklists. Provision of all forms, formats, Cash Sheets, Sales Sheets, Monthly report sheets etc Assistance in creation of local marketing collaterals and PR activities. Provision of informative material, presentations, Business and Financial Plans and Operational Manuals Assistance in organizing of local promotional activities and events. Printed material like Brochures, Pamphlets, Flex Banners on cost basis Continuously assist in monitoring and managing the business to make sure that the best business practices get implemented at the franchisee end to run it on profit as well as to have satisfied parents/children. Take care of quality of services to be delivered at the franchisee end as well as to the end customer (Thorough customer feedback, regular interactions and mystery visit at the franchisee centre) 13
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Unit Franchise’s Obligations Site Selection for the pre school Fit-outs of the pre school as per franchisor’s specifications Pre-opening purchases of uniforms, educational aids, teaching material, furniture, cams and playground equipments. Full Involvement in opening launch promo Attending initial and ongoing training individually plus key staff Payment of royalty fees to the franchisor on monthly basis Compliance with standards and policies/ operating manuals Compliance of the customer service standards as set by the company Be adequately insured Proper maintenance of books and accounts Follow timely reporting structure of various reports to the franchisor Will have to ensure smooth flow of business at all times 14
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Pre-Opening Franchise Support extended to the unit franchisee Comprehensive turn-key assistance from site selection to setup and start operations Layout and design; architectural support Pre-opening purchasing assistance Assistance in organizing of launch promotions Training • A comprehensive training is provided to all the Franchisees on center operations, accounting, control etc. Employees from all verticals are being trained on a regular basis which helps to continuously groom and enhancing operating efficiencies of employees. The franchisor can provide following assistance to its franchisees during this period: • • • •
Organizing all necessary regulatory approvals Ordering of all equipments for the centre Negotiation of suitable terms and organizing of lease Monitoring of fabrication of the centre
All the franchisees are put through a highly focused support system which educates them on utilizing their entrepreneurial skills to become highly efficient and happy franchisees. 15
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Post-Opening Franchise Support extended to the unit franchisee Operations Manual Franchisee Coordinator Ongoing R & D in the course development and the market development initiatives Advertising & local promotion: • The franchisor will organize events specific to marketing of the brand in the region. This will include participation in the related expos/ sponsoring such events, tie ups with magazines/ newspapers etc and much more in collaboration with its business partners to promote its each Franchisee pre school. Major role in ongoing course development and evolvement of the course curriculum of play school Operational support: • Day to Day operations, Technical & Administrative advices. Regular advices on management and administrative issues. Frequent official visits, advices on local promotions programs etc. Structured Marketing Ideas to suit a location PR support: • Regular PR coverage at regional level • Centralized Brand Building through all media - Print, Outdoor, Web, Retail, Electronic. 16
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Thank you For more detail CONTACT: Asim Khan +91-97178-99644 asim@franchisezing.com www.franchisezing.com
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