Indian Franchise Report 2011

Cost of book:
  • India: Rs. 1400
  • Overseas: USD 90

INDIA has world's largest young population. Ironically, despite decades of efforts to offer education to all and billions of rupees being spent, the harsh reality is that India is still falling short in meeting the educational requirements of millions of its young people. In primary education, our national strategy for education and youth development has been too narrowly focused on an academic, classroom-based approach. At higher education level, our system places too much emphasis on a single pathway to success: attending and graduating from a three to four years of college. Yet only 30 per cent of young adults enroll for it. Meanwhile, the scope of vocationalization itself needs to be imbibed from the secondary education stage in India. This would call for a serious restructuring of the 'Education Policy' and education delivery.

The education sector offers a potent business opportunity to investors, which could become as big and lucrative as the telecom and retailing. This opportunity emanates from the fact that India youth still aspire to receive quality education and that the gap between the number of potentially employable people and corresponding training institutes available to train them is still wide. Therefore, educating Indian students en masse creates an immediate business opportunities in the education sector in both formal and informal education categories.

Partnerships enabled by franchising have played a pivotal role in expanding and strengthening the professional and supplemental education infrastructure in the country. However, some of the restrictive government legislations have been an impediment, resulting in the slow growth of franchising in K-12 and higher education sectors. When statistics read that 40 per cent of India's school-going population is trying to register in private schools, which are only 7 per cent of the total, and 11 per cent of the youth are able to enroll for higher education, a mismatch in demand-supply ratio for quality education becomes glaringly obvious. This very fact highlights how private participation can play a larger role and how franchising can facilitate the provision of quality education.

The first edition of 'Education Franchising Report 2009' served as a pertinent reference tool regarding education as an enterprise. In the second edition, we have added and upgraded the scope of opportunities that have lately come to exist in the Indian education sector, analysed the government's role in augmenting education growth in the Union Budget 2011-12, along with an updated directory.

'The Education Franchise Report 2011' gives the education sector, particularly enabled by franchising, the importance it has long deserved. The report is an endeavour to guide readers on the relevant issues and the relevant business opportunity the education sector presents to India's education and training systems. It covers everything from latest developments in education franchising to many broader and relevant issues which are required to be fashioned in a business when franchise route is used for growth. Case studies of original architects of education franchising in India provides an insight into how these organisations grew manifolds.

We have been amassing precious knowledge about franchising in the education sector, which we have put together in this report and feel that it would serve as a reference guide for all education companies looking at the potential of franchising. I urge all the members involved in the education industry to give their support to the 'Education Franchising Report 2011.'

  • Chapter I - Education sector-An overview (8-19)
    Constitutional structure 9
    Economic planning for education sector 10
    National knowledge network 11
    Skill development 11
    Indian education sector by 2020 13
    Core education 13
    Supplemental and non-core education 14
    Public education 14
    Indian IT education industry 15
    Education cess 16
    Indian education-market overview 17
    Public private partnership 18
    The way ahead 18
  • Chapter II - Franchising in India ( 20-53 )
    Growth of Indian franchising 23
    Sector-wise growth in franchising 25
    Geographical distribution 26
    Age of franchise systems 26
    Franchise laws in India 26
    Key bodies for franchising 28
    Franchise employment in India 29
    Contribution to economy 33
    Potential ahead 34
    Inside the mind 37
    Inside the mind of an Indian franchisor 37
    Myths and realities about franchising 39
    Franchise Insights 41
    Inside the mind of a Indian franchisee 41
    Franchisee life-cycle 42
    Challenges faced by franchisees 44
    Current trends 45
    Franchisee behaviour 46
    Background of franchisees: sector-wise 47
    Risks associated with franchisees 48
    Inside the mind of a franchise investor 48
  • Chapter III - Business of education ( 54-83 )
    Formal education system in India 55
    Market size 56
    Primary Educaton in India 57
    Secondary school education 58
    Senior secondary education 58
    Regulations and authorities for opening a school 59
    Key characters of secondary education 60
    Higher education 61
    Growth of higher education 63
    Informal and non-formal education 66
    Market potential pre-schools 66
    Market potential: Coaching classes 67
    Market potential: Tuitions 68
    Market potential: Grad test preparations 68
    Market potential: Post grad test prep 68
    Market potential: Online tutoring 69
    Market potential: IT training 70
    Market potential: Vocational and professional skill training 71
    Market potential: Multimedia/animation education 72
    Market potential: Distance education 72
    Market potential: E-learning 72
    Foreign investment in education 73
    Market potential: Books 74
    Market potential: schools stationary 74
    Venture upbeat on education sector 75
    Way ahead 76
    Corporate entering into education sector 80
    Reforms to lead next level of growth 83
    PE investment in education 83
  • Chapter IV - How to franchise your education business ( 84-93 )
    Size of education franchise industry 85
    Geographical break-up of education franchise systems 85
    Profit from franchising education concepts 86
    Franchising education business 86
    Getting ready 86
    Choosing the right model 88
    Full franchising model 88
    Advisory on site selection 89
    Advisory on renovation and set-up 89
    Advisory on employment and training 89
    Transfer of operation expertise 89
    Transfer of programs 90
    Training 90
    Advisory on sourcing of materials 90
    Advertisement and promotions 91
    Audits 91
    Termination of franchisee 91
    Program licensing model 92
    Franchise advantage to franchisee 92
  • Chapter V - CASE STUDIES
    How to share risk with the franchisee
    How to make your franchise global
    How to ensure quality through training
    How to expand your idea
    How to create a network of eduprenuers
    How to innovate as you grow
    How to unplug market potential
    How to sustain growth in a long run
    How to diversify as you grow

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