Is School Franchise Business more Profitable for Franchisor or Franchise?

The educational sector of the country is one of the fastest-growing sectors in the country and making it an ideal sector for investment. Many people choose to start a school but have no experience in education or want a better chance for success in the industry than new independent schools. The school franchise business is an exciting opportunity for both franchisors and franchisees making it a profitable proposition for both in India. The following is how the school franchise business can be profitable to both franchisors and franchisees.

School Franchisors

A School franchise agreement generally takes place between franchisors and franchisees. The franchisor is usually the owner of a chain of reputed schools looking to expand the business in a franchise system. Franchisor provides know-how, intellectual property, brand name, school structure and guidelines to franchisees to start a new school. The following are ways how school franchises are profitable for school franchisors.

Profitability to Franchisors

School franchisors can expand the school business in India without putting a lot of capital into the expansion process. They can keep the managerial and quality control on the franchisees making it an ideal proposition for them.Franchisors get a percentage of profit from the franchisees which make the entire operation more profitable. The valuation of the business grows and the brand is also likely to grow which in turn is good for the business.Sometimes geographically it is not possible for reputed schools to expand to new areas and the school franchise business helps target new markets for the school.The risk for franchisors is limited and the chances of creating a chain of schools in different locations make it a successful venture.

School Franchisees

The people who start a school franchise are called the franchisees. These franchisees invest in the business and get an agreement to start a school under the banner of the chain of reputed schools.The new school opening procedure for the franchisees is simpler and the franchisors help them open the school in the right way. The following are ways in which school franchises are profitable to franchisees.

Profitability to Franchisees

School franchisees have a higher chance of success in making the school profitable in a franchise system in comparison to starting a new independent school without a reputation and a brand. The school franchisees get the know-how and structure of a successful school helping them become a profitable school in a short period. They get a chance to charge a decent fee more than other independent starting schools as there is already a reputation and brand value attached to it. This makes the bottom line more profitable. During admission season, there is a higher demand for these schools and this makes the school valuable and increases its profitability in the long run.

School franchise business is a profitable venture in India and it is both profitable for the franchisor as well as the franchisee. This helps in expanding the schooling sector in India and is a great way to build more schools in the country that provide quality education. The school franchises bring quality education to different regions of the country spreading education in India.

I am Digital Marketer In Millennium Education Management