An Insight into Buying a Pre-School Franchise

The Indian pre-school and child care industry, as per certain reports, is projected to grow at a CAGR (compound annual growth rate) of about 23% during the period of 2017-2022. The consistent growth of this domain is attributed to diverse factors, including growing number of nuclear families with working parents in the country, rising awareness about the importance of quality early childhood education and care, as well as increasing expectations of parents from their children. Not just in the metros, pre-school franchises in Jaipur, Patna, Chandigarh, and other such tier 2 and tier 3 cities have also gained good momentum owing to the increasing popularity of these educational institutions. Today, the domain of pre-school makes a major chunk of the education sector of the country.

Moreover, the education sector of the country as a whole is growing at an astronomical pace. The return on investments in the education industry here is also quite high. As per certain reports, the educational projects developed here might even have an IRR (Internal Rate of Return) of approximately 30% or more over a period of ten years. The education sector is also a unique industry that is typically not affected by the negative effects of inflation.

Opening a Pre-School Unit in India

The factors mentioned above imply that setting up a pre-school in the country might prove to be quite a lucrative move for entrepreneurs. Apart from providing them with an opportunity to engage in a profitable venture, a pre-school will also enable the entrepreneurs to enjoy the rewarding experience of helping children to learn and develop in their formative years. Opening a pre-school can especially be a good move for people who enjoy working with children.

However, it takes a lot more than just the drive to set up a business and the desire to positively influence and nurture children, to start a pre-school. Starting a pre-school independently right from scratch can often prove to be extremely cumbersome and overwhelming for individuals lacking experience in the education industry. The setup of a pre-school and its day-to-day operation involves a host of important aspects. While choosing to open up a pre-school independently, entrepreneurs have to bear the responsibility of taking care of each of those elements on their own. Therefore, it is highly recommended that people opt to setup their business through the franchising system instead.The Franchising System: A Brief Outline

Franchising is a popular business model that is followed in various parts of the world and in diverse industries. There are two key parties involved in the franchising system, the franchisor (business brand) and the franchisee (new entrepreneurs aiming to start a business). In case of this business model, the franchisor grants the franchisee the license to own and operate an organization that is based on their distinct business framework and model. By opting to open up a pre-school in association with the best school franchise in India, entrepreneurs can enjoy the benefits of sharing the knowledge, goodwill and brand image shared by prominent education brands.

There are multiple well-known educational units in India that offer lucrative business opportunities by way of franchises to people planning to open up their own pre-schools. These brands ideally have extremely simple conditions for pre-school setup. Some of their conditions include:

  • • Investment of a certain sum of money
  • • Holding on area as per a pre-defined length and breadth
  • • Putting both time and continuous efforts to make sure of the success and optimal profitability of the business venture

Even though opening up a pre-school is relatively simpler than other educational units, like secondary schools and colleges, it still involves a number of tasks that can be overwhelming for an independent entrepreneur to handle on his/her own. In this scenario, the franchising system comes as a huge boon as the entrepreneur get to enjoy specialized guidance and mentoring from them for the diverse important aspects involved in pre-school set up and operations.

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