9 Points To Remember Before Selecting An Educational Franchise
Educational Franchise
Parents in India are spending a lot on the education of their children. Because of a skewed demand to supply ratio, there was a phase in the education sector in India when schools provided unsatisfactory educational services but parents had no option to but to send children such schools. This situation created a very fertile ground for mushrooming businesses in education. Leaders in the education sector started redefining their models for an ideal school to enable replication in other locations with entirely different demographics. The government relaxed its regulations regarding schools to enable more schools to provide education to more children at all levels from preschool to medical school. Today the franchise business in the education sector has reached a developed stage and faces increasing competition. All the same, it is still a lucrative business opportunity and one that has a fast expanding market.
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Certain aspects should be considered before selecting a franchise for education. Age group: The main age groups in education refer to preschool, school from grade one to twelve, teenagers appearing for entrance exams, undergraduate and postgraduate. The intricacies of each are immense and complicated. On a more basic level, the preschool education franchise focus more on safety, health, hygiene, and often day care services for working parents. The main years of schooling focus on education as a composite of subject knowledge, developing life skills such as communication, sports and extra-curricular activities based on interests in arts, science, and technology, social service, etc. There is a huge demand for tuition classes that train children to appear for entrance exams for such as PMT, JEE or qualifying exams such as IELTS or GMAT. At the college level, private and self-financed colleges have been established in every field ranging from hospital management to nano-technology. One has to choose a segment that one is comfortable with and understands the most because apart from qualifications, many other factors come into play. Regulations and certifications: Regulatory requirement for each age group is different with respect to infrastructure as well as resources. Higher education requires approval by AICTE or UGC in India. School boards also require conditions for affiliation to be met. The international boards such as IB, ICSE, CIE or IGSCE have very strict standards regarding the qualification of teaching staff, infrastructure, safety, and curriculum. The affiliation procedure for UGC, AICTE or school boards is lengthy and complicated. When choosing a franchise for education, bear in mind the requirement and standards that will be continuously expected. The external examination and assessment procedures are also costly and rigorous so they must be considered before opting for a franchise. Most of the franchise schools have options regarding the board for affiliation. A detailed study of the costs and prerequisites will be necessary for the right selection. Human resources development: Educational franchises have a highly defined pedagogy and curriculum. They provide training to teaching staff to ensure adherence to the method. There is also continuous refresher training and assessment of teachers. These frequent training schedules are costly and have to be ensured in a predefined timeframe. www.frantastic.in
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An educational institute would definitely benefit from training support. Support would also be required for the recruitment of staff that is qualified as per the specified norms. Franchises have specialized staff for training and maintain a regular schedule so school management does not have to focus on the training and recruitment of teachers. Market segment: Make it a point to study the positioning of a school with respect to the market. Parents are willing to pay fortunes for the education of their children and schools often differentiate themselves as a basic level by the facilities offered to students. Another point of differentiation is in the ideology of the school. India is at a turning point where western influences are thriving along with the resurgence of the ancient Vedic approach to life. Some of the schools consciously align with these philosophies and parents are also highly aware of these influences. Schools are highly associated with upbringing and thus choices differ. With respect to location, these choices can matter. There are patrons for simplicity and there are patrons for the smart jet set. Finance: The infrastructure required varies greatly in different educational establishments. Consider the investment that would be necessary and also the time that is taken to break even. Find out whether there are specifications about owning the infrastructure or provision for rental lease agreements. Banks are willing to finance well-known businesses but the education sector has mostly intangible assets so you will need to be doubly sure. Due diligence: Before signing an agreement with an educational franchise, research about its compliance with the law. It should not have too many lawsuits filed by parents as this can result in negative publicity at any stage. When buying out an existing franchise school, be very particular whether all required documents and compliances are in place or not. Safety is one of the major points of concern for parents now and they are not willing to compromise on it at all. Some states such as Gujarat have a fee regulatory committee too which sets a cap on the maximum fees that can be charged by a school. Consider the business model in the context of such an environment and on a long term basis. www.frantastic.in
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Tie-ups with corporates: An educationist can benefit in many ways through tie-ups with corporates. In locations where huge industrial plants are established, there are often tie-ups with education franchise to open preschools and other services. These tie-ups give the opportunity of tapping a captive market and even become a matter of prestige. Franchisor policy: An educational hub requires a predefined number of students to become profitable. If the franchisor issues multiple licenses in a small area, the market is lost and it may become difficult to break even for a franchise. On the other hand, there may be a limitation on holding a franchise for multiple locations. At times, the franchisor also competes with the franchise school to enroll students. Such policies should be understood and considered before entering an agreement. Support: Assess the level of support provided by a franchise in terms of training, resources, marketing, and management. A school requires all these frequently and inadequate support by the franchisor can result in a chaotic situation
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The best way to understand the functioning of a particular school is to work with it at all levels. This allows for a grasp on the different requirements of an educational establishment. In the past, there have been incidences of irrational expansion without adequate financing and marketing which has lead to loss of face and money for the investors.
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All the same, most of the franchises schools in India are doing very well and winning the confidence of parents for all age groups and segments. The considerations to make before buying a franchise in the education sector are many. One has to assess the capability to deal with different issues. The involvement and knowledge required are immense and also requires continual up-gradation. Associating with a franchise will definitely help you to hone the educational services provided by you. By shouldering the major responsibilities for human resource development and marketing, the franchisor will leave you enough time to concentrate on the functioning of the school. Adherence to the predefined processes and standards will be your main job and eliminate most of the sources of worry. Make a thorough research of the market and the opportunities available and go ahead with a reputed franchise.
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