Planning to step into educational franchise industry? Read on to know how to evaluate various franchise opportunities
So, you are interested in investing in education franchise? You might be looking for various franchises in the education sector, but do you know how to find the best one?
Franchising has become an attractive prospect for many aspiring entrepreneurs. It has proven itself to be highly resilient in today’s time. Getting into an educational sector from a business perspective will reap great benefits. With the population increasing at a rapid speed, India’s education sector offers a great opportunity with approximately 29 per cent of India’s population being between the age group of 0-14 years. India’s education segment will grow at a CAGR of 16% from 2016 to 2020.
Thus, if you are planning to step into the schooling stage of the educational sector, then franchising is definitely a good option. But without ample information and enough research, you may end up making the most costly decision of your life. Here are pointers to evaluate a franchise business opportunity.
Decide the sector
Believe it or not, it is one of the most difficult and important decisions you have to make. Education industry consists of various sectors such as pre-school, school, higher education, vocational, coaching etc.
Many people invest in a particular franchise with the thought of making money and later come to a realisation that they do not enjoy the business. Hence, you should always select the franchise which compliments your future goals, talents and which you will enjoy for a long time. Ask yourself these following questions:
-What do you like to do? (Interest and hobbies)
- What do you know how to do? (Experience)
-What do you do well? (Special skills and talents)
- Which sector(s) involve your interests and use your skills and talents?
Also, research about new & emerging franchises, such as robotic training, STEM education which will proliferate your return on investment.
Span and Experience
It is very important to know everything about the franchise you are investing your money in. Determining the number of years of operation and franchising of the company before going for a franchise tie-up is important.
With a new franchise, you might be taking a risk, but it’s relatively easier & less expensive to join a new franchise. And always remember that Mc Donald’s, Dominos etc were once a new & small franchise.
Like any investment, there’s a probability of both failure & success when it comes to investing in a franchise, be it a new franchise or an established brand.
You can also judge the previous record of accomplishment of the franchise by the number of years a company has been operating. More the number of years of operation better will be the goodwill and market stability. Thus, determine how stable the franchise you are considering investing in is and what its future may hold.
Thorough research about the franchisor will help you to reach the results in a profound manner. Visit the website of that education franchise and know about the programs they are offering. Visit the existing franchise nearby to get better knowledge about the quality standard of the brand. Connect with the social media platforms for determining the reputation of the franchise. The best way to judge the curriculum of the educational franchise is to ask the children & their parents who are studying there. Get assured completely before making any investment.
Is there demand?
With changing market scenarios, there are new business ideas emerging regularly. The education industry is steadily getting a tech revolution, thus traditional franchises are taking a back seat in demand. Consumers are increasingly inclining towards brands which have something new to offer, such as AR/VR learning, coding schools, fun science etc.
Thus, evaluate your various franchise options and check whether there is any demand in the market or not.
Teachers are considered students’ second parents. Thus, teachers are the most important factor responsible for the success of an education centre. So, consider the recruitment and training factors before signing a franchise agreement. Prefer a franchise, where teachers are recruited by proper examination, as they are the backbone of any educational institute.
Technology and Market Trends
In today’s digital era, maintaining pace with technology is important. Students prefer learning with the assistance of various techs and gadgets instead of old school methods. Thus, a school franchise with the latest technology will definitely have a much profitable venture in future. Look for the latest trends in the education sector and then select the most tech-savvy school franchise. This would be beneficial for both the children as well as your business.
There are many educational franchisors that provide the normal support items as staff training, site setup, marketing etc. to its franchisees. Before selecting any franchise, check whether they will provide additional help for management. This will help you in ensuring that quality is maintained and that your franchise will succeed.