Everything you need to know about education franchise business model

Education franchise is one of the most profitable franchise opportunities in the current scenario

in India. Education in the 21st century is evolving. The school franchising model in which both

the partners involved get to grow and succeed while taking education to those who need it most

is becoming quite popular. In this blog, we will discuss everything you need to know about the education franchise.

What is franchising?

The school franchise model is a contractual business model wherein the established brand, known

as the franchisor, allows an independent business owner known as a franchisee, to use its branding and other rights. In return, the franchisee promises to pay the franchisor a franchise fee plus the ongoing royalties.

Advantages of franchising for edupreneurs

There is a multitude of benefits associated with school franchise businesses. Check them out.

1. Established brand name

You will work with an already established brand name that is most likely to inspire customer

loyalty, lead to more sales opportunities, and be a major reason to offer your business a

competitive edge.

2. Reduced financial risk

If you work with the best education franchise, the risk of your business failing will be very low as

compared to opening a school of your own.

3. Advertising or marketing

You will not have to worry about marketing and advertising. The franchisor conducts market

research and accordingly runs ad campaigns and promotions. Your business will benefit from the same.

4. Quality leadership

The franchisors train you and help you find the best strategies to effectively manage your business.

5. Training and support

Franchisor provides continued training and support to the franchisee. This includes initial training that should be ongoing and extend to your day to day school business operations. It also includes the development of the services that you will be offering at the school.The benefit of this arrangement to the franchisor. The franchise model is a win win for both parties involved. Here are some benefits for businesses that wish to adopt the franchise model.

1. New locations

Franchising will help you expand your local business through the efforts of your franchisee to new locations. This means if your future franchise qualifies, they will use their capital to duplicate your business at a new and desirable location.

2. Additional revenue

Successful franchisors benefit from ongoing royalties.

3. Brand development

The expansion associated with franchising leads to expanding the value of your brand.

Franchisee continues to do local advertising that further expands brand value.

4. Managerial talent

Franchisees who have invested their capital and savings tend to act as better managers and operators than paid employees who do not have a legitimate interest in the business.

Steps to establish an education franchise

The best education franchise is easily viable and can be established with the following steps:

1. Establish goals

One of the best ways to establish your goals is by making a detailed business plan. Research the market, visit education franchises and look out for yourself. Gather details and information and once you have the business plan in mind, write it down. Mention what all you hope to achieve with your business. For instance:

● You want to earn a certain amount of profit in a given time frame

● You want to build a good franchise relationship

The business plan will not only be helpful to you but can also help you convince the franchisor

and banks as it will act as proof of your dedication to the school venture.

2. Shortlist sector

In the education franchise, there are various sub-sectors to choose from. You can establish yourself in any of the following and later expand your franchise business.

● Early Education

● K-12 Education

● Higher Education

Here, based on your goal you can pick your franchise. Each sector will have its own set of advantages. Research well about the brand, profits of investing and other business aspects.

This will help you pick a few franchises to begin.

3. Visit some education franchises

Once you have a few franchisors in mind, it’s best to visit them and pay attention to their way of operating. Before finalizing, it’s always best to approach them to make an offer.

4. Budget

While buying a business franchise for school, you have to be well sure of the budget that you want to invest. The budget includes property lease, equipment needed, insurance fee and other

expenses.

5. Analytical research

After gathering all the possible knowledge related to your franchise business, let your associate partner know that you are willing to do business with them. They will then send you a disclosure that will contain rules and policies and other relevant information.

6. Rules and policies

The contract will have all the legal documents i.e the fees to be paid, the duty of the franchisee and all these documents will present as proof of your role as a franchisee.

7. Meeting invite from franchisor

After reading the disclosure form and accepting the terms and conditions, the franchisor will invite you for a face to face meeting. Till then, know more about the franchisor’s value and policies and the type of people and brand they are and if that resonates with your goals or not.

8. Franchise agreement

If the meeting goes well, the franchisor will give you a contract. It will state that you are legally granted permission to open the best education franchise in their brand name. The contract will also include a long list of rules and regulations to be followed throughout the contract period.

Become a leader in the education sector with Shri Educare

To run a successful franchise, you need to equip yourself with the right management skills that will mold you into an effective edupreneur. The top expert consultants at Shri Educare can help you start your journey to fulfill your dream of becoming a business owner. To learn how we can help you pave the way to your new business in the ever-growing education sector, get in touch with us.