Benefits of Owning a Preschool Franchise in India: Unlock Early Education Magic

on Feb 14, 2023 | 90292 views

 

By Shifa Qaiyum

Early education is a vital part of a child’s growth. The first 8 years contribute to the social, physical, logical, mental, and emotional growth of a child.

A child’s all-round development depends on the early years of education. It also strengthens lifelong learning and enhances results in all academic performances.

Benefits of a preschool franchise in India

5 benefits of a preschool franchise in India are:

1. You are self-employed- You are your boss and you need not work the 9-5 monotonous job. You can also follow your entrepreneurial goal by doing so.A preschool generally demands 6 hours of your investment daily and this gives you abundant time to do other things in your free time.

2. Round-the-clock suggestions- You get 24*7 guidance and suggestions from the parent company from the first to the last day of your business set-up. Assistance from the brand can decrease the risk of losses and mistakes made by a business start-up. The brand provides teacher training, syllabus planning, infrastructure necessity, and marketing that are needed to make your business prosperous.

3. Low possibility of losses- The possibility of losses is less because the brand name is already established and people trust the name. The initial investment of a preschool franchise is around INR 10-15 lakhs but it might take less time to recover the cost depending on the brand’s popularity.

4. Monetize your unused land- You can utilize the unused piece of land and earn income from it. But before using the land you should make sure that it meets the requirements for the preschool.

5. Be of service towards quality education- You can provide quality education to kids from the beginning of the education course.

 

What are the requirements for preschool franchises in India?

You need to follow these 5  steps to own a preschool franchise in India:

  1. Act according to the franchisor’s advice- You should follow the franchisor’s suggestions as it will help the business to run smoothly. They help you with the planning and execution of the plan required.
  2. Framework- The school environment and atmosphere should be colourful, appealing, and child friendly. It should be well-equipped with spacious rooms and a play area so that both parents and children are attracted to it.
  3. Suitable location- The school should be located in an ideal site. Being near a residential area it can be easily accessible for parents. It should not be of inconvenience to both school and private vehicles.
  4. School area- You should know that the area required to set up a play school is around 2000 sq. ft. although the size may differ depending upon the city.
  5. Well-developed syllabus- A good curriculum is very important to run a school. It should be practical and fun-based so that children are attracted to it.

 

Name some profitable play school franchises in India.

5 profitable preschool franchises in India are:

  • ABC Montessori - It is an international play school chain across India.

Initial investment: INR 12-15 lakhs

Area required: Around 1600-3200 Sq.Ft. with open area

  • Kidzee- This is one of the best play school franchises in India having won Franchisor of the Year in all sectors in 2010.

Initial investment: INR 12-17 lakhs

Area required: 2000-3000 Sq.Ft.

  • Eurokids- It has a large network of preschools all over India.

Initial Investment: INR 10-15 lakhs

Area required: 2000 Sq.ft.

  • Bachpan- This is one of the most profitable play school franchises in India because it has less fees cutting unnecessary investments.

Initial investment: INR 10-12 lakhs

Area required: 1000 square feet

  • Shemrock - This is the first play school that started franchises in India and also one of the oldest preschools.

Initial investment: minimum INR 10 lakhs

Area required: 2500 square feet

Here are some of the top education Franchises in India

What are the strengths and weaknesses of starting a preschool franchise business?

The pros and cons of a school franchise business are:

Advantages

Disadvantages

A franchise of play school means that it already has a systematic method of running a school methodically.

You have to follow a certain set of rules provided by the brand to maintain the uniformity of the franchise.

 

A franchise is already a recognised brand name with a good reputation. This leads to low risk because parents trust the brand enough to send their kids to school.

You need to pay a fixed amount of royalty to the franchisor, monthly, quarterly or per annum regulating cost.

You have a complete set-up available for smooth functioning when you buy a franchise. You can trail the functioning of what is being followed.

You have limited growth potential. The franchisor is always present to command you so that you don’t outrun their authority.

The franchisors provide training and workshops to teachers and faculty members which help in the smooth running of the school.

 

 

What is the cost of a preschool franchise?

The cost of a preschool franchise differs for different franchises. Different costs are taken into account while investing. They are:

  • Capital Expenditure Required - The capital cost varies from ₹5 lakhs to ₹20 lakhs. Royalty is also charged by franchisors every month or it can also be charged as a fee for every student enrolled.
  • Operational Cost - This involves initial investment, salaries and recruitments, and the cost of supplies, furniture, desks, and books, etc. You also need to buy or rent a space if you don’t own one already. You also need to get computers and their attachments for school administration.
  • Repetitive costs - Salaries for teachers and staff need to be given on a monthly basis and are the most noticeable expenses. Other recurring expenses include paying utility bills like water, electricity, telephone connections, internet, etc. You need to change furniture also but only when they are damaged badly. There may also be other miscellaneous expenditures.
  • ROI calculator - One needs to make a profit to remain afloat which is known as Return on Investment or ROI. It is mostly demonstrated in percentage which is calculated by dividing the difference between operational cost and net revenue by operational cost. The best ROI of an internet franchise is between 40% to 50%.

 

What are the reasons for the growth of play school franchises in India?

The 3 reasons for growth in play school are:

  • Parent’s consciousness - These days parents want their children to be well-rounded and are ready to send their kids to school at an early age. Thus the demand for preschools is increasing because it is scientifically proven that children grasp things better before the age of 6 years and the brain also develops during the first 6 years of human life.
  • Increase in nuclear families - The rise in the number of nuclear families has led to an increase in demand for play school. It is difficult for people to manage their kids without elderly people, so they would rather send them to preschool.
  • Working parents - Since both parents are working these days and are not ready to give up their professions, they find it easier to send their kids to preschool which they feel is safe and comfortable for the kids.

 

What are the reasons for preschool being a profitable franchise?

Ans. Here are the reasons why buying a preschool franchise profitable:

  1. Great returns- Preschool offers a welcoming environment for children to learn. It is the base of future learning and parents are sending their kids to renowned preschools.
  2. Easy to begin- The process to set up a preschool franchise is very easy. The franchisor guides you through the whole setup and you don’t need to spend extra on marketing because it is already a well-known brand, thus decreasing your cost.
  3. Early break-even- When you build a preschool franchise your losses can be cut down because sustain tried and tested things. You avoid mistakes that a startup can make and so receive the profits earlier.

 

What are the disadvantages of low-cost preschool franchises?

People think that by spending less money on a franchise they can receive greater profits but these are the realities of a low-cost franchise:

  1. No transparency- A low-cost preschool does not provide the exact investment amount. They may not include royalty fees, location costs, running costs, and training and salaries in their cost proposal. They provide incomplete proposals to the franchise.
  2. Minimal facilities- Parents want to send their children to play school which offers a good environment and learning experience for the children. Low-cost franchises may not provide a certified staff or safety for kids. The environment may not attract parents as well as children.
  3. Less support- You need the franchisor’s support if you are an amateur investing in a preschool franchise. The aid will help you in running the business smoothly. A low cost generally provides support till the launch of your school and then you have to struggle with marketing, training and planning, and school management.

 

Frequently Asked Questions

1. Is opening a preschool profitable in India?

Ans. Yes, preschool franchises are profitable in India. Some preschools have a profit margin of 30%. The fees of good schools vary from INR 30,000 to INR 50,000 quarterly, depending on the city and location.

2. What is the investment to start a preschool franchise?

Ans.

Space required

200 square meters and above

Initial investment

Up to ₹12 lakhs

Brand fee

₹4 lakhs + GST

Royalty

15%

 

3. Does the franchisor help with the cost-cutting?

Ans. When you invest in a franchise, your marketing cost is saved because the brand is already well known. The franchisor also helps in operational cost management as it already has established rules to follow to maintain uniformity.

 

4. How to choose the best preschool franchise?

Ans. You should be careful while choosing the franchise as it should be able to attract parents as well as children. The school should have a friendly and child-like environment. The franchisor should support the franchise 24*7 and provide workshops and training to the staff. They also provide support for equipment and marketing.

 

Conclusion

If you want to invest in the education sector, the playschool franchise is one of the best choices. The demand for preschools is increasing as people are ready to send their kids to school from an early age.

However, you should be careful and do thorough research on the school before investing.

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