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The franchise business is not a new concept in India; it has a decades-old legacy. For ages, big brands in all segments have thrived with the help of their franchises. The segment was flourishing and moving north until the Covid-19 pandemic-induced lockdowns and restrictions put a halt to the growth. However, with economies coming back on track and picking up the pace, the franchise business is all set to thrive again. Experts believe that franchise business are set to flourish again, with the industry witnessing a rise in entrepreneurship in almost all segments. As per the Global Entrepreneurship Monitor (GEM) India Report (2021-22), “India’s entrepreneurial activity expanded in 2021 and increased to 14.4% in 2021, up from 5.3% in 2020.”
While the overall franchise business is growing, the school franchise segment is specifically gaining popularity with the rising demand for quality education. According to the data available on IBEF — a trust established by the department of commerce, ministry of commerce, and industry — the Indian education market is estimated to grow to USD 225 billion by 2025. Currently, there are 26.44 crore students in Indian schools. The number is expected to grow to 30 crores by 2030. The numbers depict that India is a mega-profit market for franchise businesses. Therefore, investing in a franchise business can lead investors toward a successful future.
The school franchise gets ready-made solutions, which helps to alleviate unforeseen odds of doing business. Since they are already functional, the franchisor has a clarity of investment required, the brand reputation, best practices, guidelines about management and staff, the profit model and plan for the business. The teachers at franchise schools are trained as per standard educational methods, which provides an edge to these schools over any other school.
Even though the concept of starting a franchise school seems tempting, one must understand that starting a school in India is very complex. It involves heavy documentation, work licensing and certification from multiple governmental authorities. However, starting a franchise school is comparatively easier than launching a new brand. This is because franchise schools have already established a market image and they have a set of customers who act as a testimony to the quality of services being offered by these brands.
While some may argue that running a franchise school is a task or that there are too many restrictions, in reality, that’s not the case. Investing in an education franchise gives the franchisor the liberty to take decisions. It gives them the freedom to choose their business partners. The education franchise already has balance sheets and investment requirements, making it easy to get loans approved. Education is a promising industry, and the chances of failing an educational franchise are quite less.
From a broader perspective, a franchise business in education is one of the most promising options to select. Over a quarter of India’s population is in the age group of 0–14 years. In the coming times, this age group will drive the demand for quality education, and the franchise will be able to serve that purpose. This segment ensures that the quality of education and school infrastructure is best-in-class, assuring the end users. In the future, this segment will play a crucial role in formulating and introducing new ideas and technologies into the Indian education system.
Source – Times of India
Post Link – https://timesofindia.indiatimes.com/blogs/voices/advantages-of-starting-franchise-education-business-in-india/
Published on August 27, 2022