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Anirban Bhattacharya is working as the Associate Vice President – Partner Schools with Seth Anandram Jaipuria Group. He is currently spearheading the complete operations and expansion of Franchise schools across pan India. Anirban has more than 18 years experience in the education sector in various domains and capacities. In the past, he played an important role in setting up K12 Schools in North India and the Higher Education initiative wherein he was instrumental to set up colleges in pan India. He has been associated with some reputed education organizations in the past. He has also helped many students in achieving their goals and creating an aspirational future by being an expert career counselor throughout. His edu-perineurial stint with various education companies equipped him with hands-on knowledge about start-ups and an intrinsic understanding of various business models.
Franchise businesses play a pivotal role in escalating education businesses due to economic, social, and geographical reasons. Franchise businesses work by buying rights to use a firm business model along with the brand’s name to ensure maximum expansion in less time and capital. Besides, economic, social, and geographic reasons there are many reasons why the education business is in the favour of the franchise model and this is why the franchise model is seen as the future of the Indian education system. 26.31 percent of India’s population is in the age group of 0-14 years which means multi-fold opportunities of growth for the Indian education sector. By 2025, the Indian education market is expected to grow up to USD 225 million. In the Union Budget, 2021-22, the government of India allocated over 54,000 crores (USD 7.53 Billion) for the Department of School Education and literacy. The figures look promising as it will boost confidence and strengthen National Education Policy, 21. A hard look at the Indian education sector reveals that the system is skewed more toward the public sector as more spending is directed by the government to strengthen public schools, however, the overall trend suggests differently.
According to FICCI, 54 percent out of 1.46 million K-12 schools in India are either governed by the central or state, and 21 percent are managed by local bodies. Private schools account for 25 percent of the share out of the total number of K-12 Schools in India. And out of the total number of students enrolled in K-12 schools, 40 percent go to private schools. This clearly states that parents prefer private K-12 schools over government or public schools. Parents look for state-of-the-art infrastructure, quality education, individual attention, and faculties before finalizing a school and the school franchising model becomes instrumental in meeting these demands.
Why franchise business is a profitable model
The world runs based on basic economic principles of demand and supply. The figures projected above suggest a huge potential market for private schools in India. If an investor is confused or has minimum knowledge about the business then there is already a ready successful model in existence that can help them. In the Union Budget 2021-22, more than 15,000 schools, 100 new Sainik Schools, and 750 Eklavya model residential schools for tribals will be established to strengthen the National Education Policy, 21 which gives room for a ready market that requires quality education in tier 2 and 3 cities and remote areas of India. Established brands that have already proved their mettle in imparting quality education are always looking to expand and provide their financial support to the potential player or start-ups. The school franchise model is also a recession-proof business, even during the pandemic the education sector witnessed a uniform growth in student enrolments.
Benefits of the franchise education business
One of the key benefits of doing a franchise education business is the constant guidance and direction that a franchisor gives to the franchise. Right from academics to hiring faculties and staff members to infrastructural support, planning yearly calendar, IT support, curriculum design, marketing, publicity assistance, and more.
Since premium education schools are looking to expand their reach with the intent that students from different parts of India get access to quality education, they are always ready to diversify with 360-degree support.
The franchise model alleviates risk for both parties, franchisor ensures an apt architecture and vendor support at the initial phase of the construction.
As projected that the Indian Education Market is expected to reach USD 225 million by 2025, the growth potential of this sector is huge, and to capitalize on it fully franchise partners can capture the market better with an established brand name.
The franchise education model is the smartest business model which ensures recurring income as students become familiar with the curriculum and its flow, they are most unlikely to switch. Sticking to one education model also comes with the emotional value
The future ahead
In the future, more and more established players are looking to invest in education as a step towards nation-building after promising support extended by the government in the Union Budget 2021-22 to enhance and strengthen the education sector. More established brands are entering this foray with the ‘ABCD’ model of the school franchise- Academic support, Brand legacy, Care and Commitment, and Detailed Planning. As government lays more emphasis to build quality and premium educational institutes in tier 2 and 3 cities, more and more franchises are looking for established players to help them grow with the help of their experience and expertise. The recession-proof and recurring revenue model adds power to the franchise education business which will only increase in years to come.
Source – Youth Incmag
Published on – 29 March 2022