India today is truly the land of opportunities specially in the education sector, being a young developing nation, India presents ample growth in this sector. You can start your school from the scratch or choose from hundreds of franchise and business opportunities. In fact, there are so many alternatives available today that at times it is difficult to figure out which is the best path to follow. Once you decide you’d like assistance in starting, you still need to understand the difference between franchise, business opportunity and having some set up a brand for you.
Franchises vs Having someone set up a school for you:
1. Common Brand & Operating Procedure:
One of the tenets of a successful franchise system is that all units operate under a common brand and operating system. This is how you know a portion of Peri Peri Fries will be the same in Gurgaon or Mumbai. A franchise system makes a concentrated effort to ensure that every operator adheres by similar standards of teachers, materials and facilities. Hence, every unit is supporting and reinforcing the brand.
On the flip side, with a turn-key startup consultant, there’s typically no requirement to operate under a common brand. In addition, since the focus is on setting up operations, consultants are flexible on the operating system post operations. This lets you fine tune the operations to suit your needs and geographical preference. You get extensive suggestions about effective ways to run your school but they are suggestions rather than rules.
2. Ongoing Support:
A franchisor has the responsibility of ongoing commitment to support you over your tenure. They regularly audit and assist in hiring. These support programs are mandatory and structured periodically. Dedicated support personnel for marketing staff training, technology and every other aspect of operations is assigned. If one is unable to meet the commitments of the franchisor, then the franchisor has the right to dismiss the franchisee. Most franchise contracts are heavily biased towards the franchisor.
Consultants to offer ongoing support, however, as mentioned earlier post their periodic audits they will only be able to make suggestions and it would be up to you to adhere and implement them. The process to is not usually a periodic one and is more demand driven.
3. Ongoing Fees:
As a franchisee you will be committed to pay the franchisor ongoing franchisee fee, regardless of your earnings, in exchange for continuing the right to use their brand. Other charges and one time lump sum charges will usually apply. Local marketing spends too is usually split between the franchisee and the franchisor. The bigger and stronger the brand more the franchise and marketing fee. However, this fee is what gets you added benefits like periodic checks, national marketing, lead transfer and so on.
A consultant will not have any ongoning payment commitment. You may be charged post set-up only on basis of work if any. This is one of the key differences between hiring a consultant to set up the school for you versus taking a franchise of an existing brand.
4. Legal Disclosures:
Finally, legal restrictions associated with a franchise are stringent and center around the franchise document. This document contains a lot of information about the school, compliances and other regulations one needs to follow to comply and run the franchisor’s brand. On the other hand, you do not have any such document when setting up your own school.
This does not mean one is better than the other. Both have their pros and cons. You can safely assume that the initial franchisee fee and the royalties will definitely be more but your involvement in driving admissions and figuring out best practices would be minimum. For certain people who are looking at the school just as a mean to park extra funds, taking up a franchise seems like a good, minimum involvement opportunity. However, if you want to start a school for the love of teaching and have a vision which involves making more schools in the future and selling your own franchise someday then clearly you need someone like Strategum to set you up, help you with the legal compliances and steer you in the correct direction. We have set up over 50 schools/pre-schools/ colleges in India. You can send in your query at firstname.lastname@example.org