School Franchising: A Win-Win Business Model

School franchising marks the symbiotic partnership between established school brands and potential investors.

Education in the 21st century is evolving and expanding on the back of the win-win model of school franchising in which both the partners get to grow and succeed while taking education to those who need it most. 

In today’s rural and urban India, children’s education and health are probably the two most important things that no parent is willing to compromise on. Going by the figures, the Indian education market is expected to grow up to USD 225 billion by 2025. This number seems par for the course if you consider that 26.31 per cent of India’s population is in the age group of 0-14 years. The younger the population the more opportunities for the education sector to grow.

A look at the Indian education system reveals that it has been heavily skewed towards the public sector. According to a FICCI report that came out a few years ago, 54% of all 1.46 million K-12 schools in India are managed by the central or state governments and 21% are managed by local bodies and municipal corporations. Private schools account for 25% of the total number of K-12 schools in India, and yet, out of 253 million students enrolled in K-12 schools, private school students account for a 40% share of enrolment.  

This figure is an important indicator that students in the K-12 segment prefer private schools to government ones. The reasons can be many, especially the quality of education, better individual attention, state-of-the-art infrastructure and holistic education practices in private schools. The overall trend is migration from public schools to private ones. 

The growing need for quality education is particularly apparent in rural areas where the parent and student aspirations to match the cosmopolitan standards are quite high. This creates a fertile ground for the school franchising model to prosper.

Factors that make school franchising lucrative:

  • A ready market for quality education in tier 2 and tier 3 cities
  • Willing investors ready to start new schools but lacking knowledge and expertise
  • Established school brands wishing to expand their reach by providing support to start-up schools
  • An ecosystem for growth and expansion of the education sector

School Franchising marks the symbiotic partnership between established school brands and the potential investors looking to foray into the education sector. It is a win-win model because both the franchisor and the franchisee get to benefit through this partnership.

Benefits of the School Franchising Model of Education:

  1. Reputed school brands are taking a route towards franchising to diversify their business, expand their reach, build up their brand value further and contribute towards nation-building through education.
  2. Potential investors are realizing the advantages of the franchise model in facilitating them to achieve their goal in quick turn-around time.
  3. Franchisees get to benefit from the brand recognition that a franchisor brings along. It helps capture the potential market.
  4. The franchising model mitigates the risk for both partners. The franchisor extends apt architectural and vendor support for optimal use of infrastructure and basic amenities towards the construction phase. 
  5. The franchisor provides 360-degree support to the franchisee in starting a new school. This includes academic support, hiring and training of teachers and staff, drawing up the yearly academic calendar, assistance in marketing and publicity, and IT support etc. 
  6. The experience and proficiency of the franchisor and the passion and commitment of the franchisee meld together to make the school franchising model a success.
  7. The school franchising model is particularly a boon for the rural and semi-urban areas where the need for a world-class education is prominent.

A Bright Future Ahead

The coronavirus pandemic may have thrown a spanner in the works of school franchising, but it’s only a matter of time before the education sector tides over this crisis.

Apart from the private edupreneurs, the government is also investing heavily in education to build the country’s human resources and is even urging private players to invest in the education sector so that quality education from primary school to the university level can be offered in far-flung areas of the country. 

More and more established brands are entering the fray with a readiness to deliver on what is called the ABCD of School Franchise – Academic support system, Brand and its legacy, Care and commitment, Detailed project planning. More and more franchisees from rural areas and tier 3 cities are looking to partner up with established brands and make the most of their experience and expertise.

School franchising is a mutually beneficial partnership model that will shape education in India and across the world in the years and decades to come.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house

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franchising business model education sector collaboration

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