Why do Reputed Schools Give Their Franchises?

There are many ways to expand a business and franchising is one of the best forms of expansion, especially in the education sector. This is a business strategy when a business is doing well and wants to expand in a relatively risk-free and profitable way. In India, the last two decades have seen a massive expansion in the education sector. Today, just like other sectors of the economy, the education sector has developed some very reputed school brands and people from all over the country want their children to get admitted to these schools. The following are some of the reasons why reputed schools in India give franchises and expand their business regionally or even nationally in India.

Easy Model of School Franchising in India

The school owners license their brand and their business operations to school franchisees looking to enter the business. The franchisor simply licenses the know-how, intellectual property, business model, procedures and brand to a franchisee owner. The franchisee then starts a school under the same name and using the same methods. A simple franchise agreement can be made in India and reputed schools in the country can expand their business easily without too much investment.

Profit from Partnershipwith Relatively Low Risk

Starting a private school in India is cost-intensive and involves risks. Even reputed schools looking for expansion are often scared to invest so much money into a new school. By franchising the business, the capital investment risk is low and the franchisor gets fees or profit- sharing partnership with the franchisee.

Access to Capital

Reputed schools have a brand and have a better chance of success. A franchise agreement with a reputed school helps franchisees easily get access to capital. The franchisee can show this agreement to lending banks and institutions and the reputation of the franchisor school makes the investment for financial institutions less risky.

Macro-Level Management& Supervision

There are many school franchise opportunities in India as the demand for good schools is high in India. Franchising by reputed schools is a way to expand the business in a country like India. In the franchise agreement, the reputed schools usually put down guidelines and rules about management control of these franchises. This means that even though day to day business is run by the franchisee, the reputed schools have management control over the macro-level management of the franchise. This way the franchise schools can be supervised easily and standards can be maintained at such schools by the central management.

Growth in Valuation of Business

Expansion of business is something reputed schools are constantly looking at and most schools want to expand in a low-risk way. Franchising is a great way to expand the business and grow the valuation of the business with limited liability and risk. Through opening many franchisees, the business valuation of the franchisor school increases.

Better Reach of Top Educational Institutions in India

India needs more reputed schools and there is a severe shortage of instituted educational excellence in India. Educational franchise in India is a great way for reputed schools to reach new towns, cities and even villages in India.

Reputed schools should look at franchising as it is a good idea in a country like India where there is a high demand for quality education.

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