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The success of a business is determined by several factors, the most common one being the propensity to evolve and adapt to the changing trends of the market. Remodeling the business structure as per the ongoing market trend helps survive the cut-throat competition and remain at the top of the game. Currently, franchising is riding the growth wave worldwide. Big or small, every industry is embracing it to widen its presence in the global market, the impact of which can also be witnessed in the education sector.
The franchise business model has been in existence for a long time in the education sector. It is a usual business practice in western countries, but it has picked up pace in India now due to the fast-changing landscape of the Indian business market. As international brands are entering the Indian market, the competition level has increased in the education sector, forcing the institutions to revamp their working model to reach a larger population.
With the rising need for quality schooling and training in India, the education sector is witnessing explosive growth. The demands for institutions providing best-in-class learning experiences are particularly rising in Tier 2 and Tier 3 cities. It is a perfect opportunity to expand in the interior parts of India, where the majority of the Indian population resides. In the current scenario, franchising seems like a more feasible option for educational institutions to scale up and create a presence nationwide.
To begin with, establishing and running an educational institution requires proper funding, infrastructure set-up, and most importantly a team of qualified professionals. Supervising all these areas, without compromising the quality of education, which is the primary goal of any institution can be complex. Franchise-based models allow the institutions to deepen their presence by providing opportunities to people familiar with the field and region to run their business. This business formula reduces the financial burden and generates more revenue.
School franchising also helps a brand to expand quickly. Going by the figures provided by the India Brand Equity Foundation (IBEF), the Indian education market is expected to grow up to 225 billion dollars by 2025. The numbers are an indication of the growing demand for quality education in the smaller towns and cities where the parents and students aspire to match the cosmopolitan standards. Looking at the trends, franchising is the best possible solution to prosper and expand the brand.
Moreover, rising incomes and growing competition among the residents for better education for their children have led to the rise in the need for an equitable education system, which is expected to boom in the future. Looking at the trend, it is the best time to explore the franchising option to gain profit in the future. It will also increase brand awareness. The more people will know about it the more profitable and successful the brand can be. Franchising helps to create brand recognition and capture the potential market in other parts of the country.
Associating with a renowned brand is even beneficial for the franchisee. The strategy helps them gain profit much more easily. Besides, it is a less costly option for those willing to start their own business with limited resources. It makes franchising a win-win solution for both parties.
AVP Partner Schools,
Seth Anandram Jaipuria Group of Schools