Written By: Yukta Palekar

With the private education industry predicted to reach US $225 billion by FY 2025, an education franchise provide a profitable opportunity for ambitious entrepreneurs in India. The Union budget for 2024 has raised funding for education, employment, and skill development to ₹1.48 lakh crore to reinforce India's frameworks for both skill development and education.

The government's determination to solve important problems in these sectors is reflected in this ambitious strategy.

When making an investment in an education franchise in India, this article offers all the information you need.

UNION BUDGET 2024: ON EDUCATION SECTORS

Budget Allocation and Overview

• Total Allocation: ₹1.48 lakh crore for skilling, employment, and education.
• Growth: This is 30% surge from previous allocations.

Financial Assistance and Enrolment Initiatives

• e-Vouchers for Education Loans: Financing Support: Financial assistance up to ₹10 lakhs with 3% interest subsidies every year. Beneficiaries: One lakh student annually.
• Revised Skill Loan Scheme: Aim: Enable acquisition of skills aligned to industry requirement.

Female Workforce Participation

• Working Women Hostels: Objective: Redress the low female labour force participation rate (37 % as against 78 % in case of males).

Job Creation and Industry Alignment

• Employment-Linked Incentive Scheme: Purpose: Promote job creation. Incentives: Given to enterprises that create new jobs.

Vocational Training and Internship Programs

• Upgrading Industrial Training Institutes (ITIs): Approach: Hub-and-spoke model. Aim/Goal /Objective-Purpose: Align course content with industry needs and enhance vocational training quality. Number of ITIs – 1000)
• Internship Scheme: Beneficiaries – 10 million youth across more than five hundred firms; Stipend -₹5,000 monthly stipend; One Time Assistance – ₹6,000 payment.

Factors That Should Be Considered When Selecting an Educational Franchise

Market Research and Demand Analysis

• Demand Analysis: Analysing demand for educational services within the target locality.
• Population Demographics: The population demographics of the area you are in as well as the income levels
• Competition: Looking at competition from other schools.
• Customer Base: Picking a location that has a high demand for quality education to give higher return on investment.

Brand Reputation and Track Record

• Established Brand: Go for established brand names that have a history of success.
• Research: Investigate the franchise’s background, successful students it has had, and market reputation.

Investment and Financial Viability

• Financial Requirements: Assess initial franchise fees, royalty payments, marketing costs, and setup expenses.
• Operational Costs: Take ongoing operational outlays into account.
• Financial Model: Develop a financial model which gives indication of potential revenue and profitability over time.

Franchise Support and Training

• Training Programs: Find out about curriculum implementation training programs, marketing strategies training programs, student enrolment training programs, business management training programs.

Curriculum and Pedagogy

• Educational Standards: Making sure the curriculum is consonant with the most up-to-date educational standards and best practices.
• Learning Environment: Consider classroom size, furniture, technology integration, and overall atmosphere.

Legal and Regulatory Compliance

• Franchise Agreement: Review compliance of agreement with laws and regulations.
• Legal Consultation: Engage legal experts for clarification on any legal aspects or concerns.

Marketing and Branding Strategies

• Marketing Support: Find out about franchisor-provided advertising campaigns, digital marketing, promotional materials.
• Localized Marketing Plan: Jointly develop a marketing plan specifically tailored to the audience in collaboration with the franchisor.

Scalability and Growth Potential

• Scalability: Assess if the franchise model has growth potential for multiple locations to ensure that it can grow from one outlet to many other outlets under the same brand name without losing its core identity.
• Multi-Unit Ownership: Look at whether support for multi-unit ownership exists within a particular brand.

Top 5 education franchise To Start in India

Wonderland Preschool – Franchise

Wonderland Preschool in India promotes compassion, respect, and healthy conduct via a research-based curriculum and individualized instruction. Low startup costs, a dynamic brand, and individualized marketing assistance are offered by franchise options.

Successful franchisees need between 1000 and 1500 square feet of space, ideally on the ground level, as well as a prime location near a population that is both rich and easily accessible.

An in-depth knowledge of kid requirements, psychology, communication, marketing, and management abilities are prerequisites for investors. The initial investment is 5 to 10 lakhs rupees.

JD Institute of Fashion Technology - Franchise:

Established in 1988 by Chandrakant and R. C. Dalal, the JD Institute of Fashion Technology is a trailblazer in the field of Art & Design Education in India. The organization offers frequent classroom sessions and workshops led by professionals in the field in a nurturing setting. The range of investments is between Rs. 20 and Rs. 30 lakhs.

INTERNATIONAL CANADIAN ACADEMY LTD – Franchise

An Edtech startup called the International Canadian Academy (ICA) wants to transform education by changing the way that people learn and equipping pupils for situations that they may encounter in the future. With an emphasis on digital skills, conceptual knowledge, and core competencies, the organization is dedicated to assisting educators in helping schools adjust to a changing global environment.

To support learners' critical and creative thinking as well as their development of digital, social, and personal capabilities, ICA has created systems and techniques. Creating a school paradigm that helps students acquire lifetime competences is the goal. The ICA investment range is one to two crore rupees.

T.I.M.E. Pvt Ltd – Franchise

The best exam preparation school in India is Triumphant Institute of Management Education Pt. Ltd. (T.I.M.E.), which has 200 locations in 104 cities. Founded in 1992, it provides preparation courses for both national and state admission examinations, in addition to foreign tests such as the GMAT, GRE, IELTS, and TOEFL. Students enrolled in various engineering programs can also benefit from T.I.M.E.'s Campus Recruitment Training and IIT Foundation program. Investment range: 10 to 15 lakhs of rupees

 NIIB Institute - Franchise

A premier beauty school in India, NIIB Institute was founded in 2004 and provides extensive instruction in makeup, cosmetics, and beauty. By 2023, with more than 16 locations, it had helped more than 35,000 students, improved their abilities, and understood of business methods.

The institute, which has accreditation from IAO, Pathway to Success (UK), and NSDC-Skill India, offers investments ranging from Rs. 15 lakhs to Rs. 20 lakhs.

The best education franchise in India: Challenges and Opportunities.

Franchise Model’s Characteristics

• Curriculum Standardization: To ensure a uniform quality of education across all its locations.
• Brand Image: A solid brand attracts students and their parents.
• Support for Operations: This allows the franchisees to operate smoothly by availing whatever they need.
• Elasticity: The model can be expanded to different locations.

Challenges

• High Initial Investment: High capital requirements may scare off potential investors.
• Limited Autonomy: Curriculum development and operational decisions are subjects to restrictions hence no room for innovation and flexibility.
• Reputation-Based Dependence on Brand Name: The reputation and enrolment rates of the franchisee depend on the overall brand image.

Opportunities

• Technological Integration: The inclusion of digital platforms, online learning modules, interactive tools make learning more interesting and fun hence enhancing the learning experience of students
• Customized Learning Solutions: More preference for personalized educational services according to student preferences and learning styles is on the rise globally thus creating a market gap that needs to be filled through this system.
• Expansion into Tier II and Tier III cities: Growth in demand for fine academic offerings outside major urban areas provides attractive opportunities for expansions through this channel.

Threats

• Possible changes or more state regulation can create problems as in regulatory challenges.
• EdTech platforms that offer flexible and cheaper options are potential threats, which could see market share diverted.
• This is essential for maintaining the adherence to curriculum standards, teaching quality, and operational excellence across several locations.

The Best Education Franchise in India presents an encouraging business model for franchisees seeking to expand into different markets but has its own pros and cons.

Benefits and Support of Investing in an Education Franchise in India

Investing into education franchise.

• Enhanced Success Rate: Proven success history. Solid foundation given by the brand already established.
• Support through the Franchise: Business operations are fully supported. Continued support to prompt business growth and profit making.
• Convenient Identification of Markets: Having existing links with schools, institutions for higher learning that can be relied on to provide pupils or students or customers which means concentration is only based on managing the business not involving oneself into customer building relationships.
• Long Term Financial Assistance Continuous financial support will enable expansion of businesses ensuring its sustainability in the long run.

Market Potential

• Growing Education Market, The Indian educational market has been experiencing steady growth over time which makes it ideal for those who want to engage in entrepreneurship as it is their own startup area.

Key Considerations

• Correct Research: Understand the market and competition. What your firm hopes to achieve has got to be clear in your mind before investing into it.

Are you prepared to collaborate with India's fastest-growing industry, the education sector, after the Union Budget 2024?

Budget 2024 and Education

• More Initiatives and Funding: The government's commitment to enhancing access to postsecondary education and skill development is reflected in Budget 2024.
• Commitment to Educational success: Addresses issues related to employment and promotes academic success.

Growing Education Sector

• Quick Growth: Throughout the world, the education industry is expanding at the quickest rate and steadiest rate.
• Entrepreneurial Opportunities: Offers plenty of chances for aspiring businesspeople wishing to launch an education franchise in India.

Benefits of Education Franchises

• Privatization of Education: Promotes the idea of franchising in the field of education.
• Quality and reputation: Compared to beginning from scratch, franchises provide higher quality and reputation.

Suitable Candidates for Education Franchises

• Aspiring Entrepreneurs: People drawn to the field of education.
• Professionals in business and management: Those with a strong sense of business.
• Aspiring Entrepreneurs: Professionals who have a great ambition to launch an enterprise in the field of education.

Support from FranchiseBAZAR

• FranchiseBazar Services: Assists in compiling a short list of the top franchise and business possibilities in India's education sector.
• Profile Matching: This service matches your investments, skill sets, and profile with available franchise possibilities.
• Ease of Finding Opportunities: Register your entrepreneur profile with FranchiseBazar to uncover the greatest franchise opportunities quickly.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.