Written By: Bandana Gupta

Education Franchises in India – A Great Way to Start Your Own Business

Starting an educational franchise is a great way for people in India to run their businesses in the field of learning. These businesses can be anything from preschools to coaching centres. Since they come with ready-made systems, teaching methods, and study materials, it's easier and less risky for someone new to get started. The growing need for good education and skill training is making this a fast-growing industry.

Types of Educational Franchises:

1. Preschool Franchises

These are for young children (ages 2–5) and focus on early learning in a fun way. Some well-known names include eduMETA THE i-SCHOOL, EuroKids, and Bachpan Play School.

2. K–12 School Franchises

These schools offer full-time education from kindergarten to 12th grade and follow popular boards like CBSE or ICSE.

3. Skill Development Centres

These centres help people learn useful skills, such as computer training, exam coaching, or job-focused courses. Examples include IISDT Computer Education and Avision Institute.

4. Tutoring Franchises

These franchises provide one-on-one tutoring for students of all age groups, often in the comfort of their own homes.Tutor Doctor and Club Z! are two such franchises.

How Tier 2 and Tier 3 Cities in India Are Emerging as Hotspots for Education Franchise Growth:

Since gaining independence, India has achieved significant progress in its path toward growth and development.While big cities like Delhi, Mumbai, and Bangalore have grown rapidly with modern living, great hospitals, top schools, and strong income levels, the real story today is happening in smaller cities.

In recent years, things have changed fast, thanks to digital technology and strong efforts by the government. This big shift is happening in many areas of life, and education is one of the most affected.

Smaller cities like Dehradun, Bhubaneswar, Kota, and Visakhapatnam have always been known for good education. But now, with the power of edtech and digital learning, many more Tier 2 and Tier 3 cities are becoming strong education hubs.

This growing focus on quality learning, access to online tools, and rising demand for good schools and coaching centres makes Tier 2 and Tier 3 cities in India ideal for launching an education franchise business. This is the ideal time to get involved and grow alongside this exciting transformation!

Top Reasons for the Rise of Education Franchises in Tier 2 and 3 Cities:

1.Impact of the Internet:

The internet has truly changed the game for education in India, especially in smaller cities and towns. It’s one of the biggest reasons we’re seeing such a huge shift in how and where people learn.

Thanks to digital tools and online access, students and teachers in Tier 2 and Tier 3 cities now have the same world-class resources as those in big cities. Teachers can stay updated with the latest knowledge and tech, while students and parents are happily using online learning tools and platforms.

Not too long ago, the newest trends in education would take forever to reach smaller towns—and by the time they did, they were already outdated. But now, with just a click, everyone has access to the same high-quality learning no matter where they live.

The internet has also broken down barriers like distance and time. Before, students had to move to big cities for better education. Many couldn’t afford that, so they missed out. Today, top-quality learning is just a tap away—even from home!

What’s even more exciting? Students are dreaming bigger. They’re asking for more, expecting better—and this is pushing schools and educators everywhere to step up and offer the very best.

2. Positive approach of the investors:

No big change ever happens without money, and the education revolution is no different. With tough competition and almost full markets in the big cities, investors have started looking for new places to put their money in education.

Smaller towns and cities are turning out to be great spots because they have good infrastructure, lots of internet access, a growing middle class, fewer quality schools, and less competition. All this adds up to exciting chances for investment.

Because of this, investors are happily putting money into these areas and helping education grow and change fast. In 2020, people invested about 1.4 billion dollars into India’s online education (EdTech) industry!

3. Start-ups Driving Innovation in India’s Education Sector:

India is full of amazing start-ups, and just like in other fields, they’re making a big difference in education too. With big companies dominating the larger cities, many start-ups are turning to smaller towns and cities to grow and shine.

These start-ups are bringing fresh ideas, new technologies, and a lot of positive energy to places that really need it. They’re also catching the attention of investors who are excited to support this change.

What’s even better? Some of these start-ups are helping students who struggle to pay for their education. In a country where dropping out due to money problems is still common, these companies are offering easy financing options so more kids can stay in school and chase their dreams.

4. Fee Financing for Education:

Fee financing is one of the smartest ideas that start-ups have brought into the education world. Here’s how it works: the start-up pays the full school or college fee for a student upfront. Then, the parents can pay the amount back slowly in small, easy installments—many times without any extra interest.

It’s a win-win for both schools and families. Schools get the full semester or year’s fee in advance, which gives them more money to plan better and improve their facilities. At the same time, parents don’t have to worry about a sudden big payment, especially during tough times like job loss or emergencies. Their child’s education can go on without any break.

What started as a way to help with school fees is now also helping students going for higher studies, especially those who don’t have access to regular bank loans. During the pandemic, this idea was a huge support for many families and schools, and it continues to be helpful even today.

5. Embracing New Technology:

The use of technology in education became necessary because of the Covid-19 pandemic. But for smaller towns and rural areas, this change turned out to be a good thing. It helped improve schools and learning in these places a lot. Now, students don’t have to go to big cities to get a good education. Thanks to the government, new technology, and hard work in the education field, soon good education will be available everywhere in the country.

6. High-Quality Education in India’s Smaller Cities

As more families in these cities join the middle class, the need for good education is growing fast. Parents want the best for their kids and are looking for schools that offer strong learning and better future chances. That’s why educational franchises that can deliver quality teaching are becoming more and more popular.

7. Investment Opportunities

Investors are starting to see big opportunities in Tier 2 and Tier 3 cities, especially in education. Since there aren’t too many good schools yet and competition is still low, it’s a great time for new education franchises to grow. In fact, in 2020, the edtech industry in India got a lot of investment, showing that more people are interested in these areas than ever before.

8. Government Support :

The government is working hard to make smaller cities better for education. They are improving roads, internet access, and schools, which helps make these places great for new educational opportunities.

9. Affordable Operating Expenses:

Starting an education franchise in Tier 2 and Tier 3 cities costs less because rent and employee pay are lower than in big cities. This helps the franchise spend less and earn more.

10. New Trends in Consumer Likes

Parents in smaller cities are now choosing well-known and high-quality education options. They want the best for their kids and are willing to pay for schools that help their children do better in their studies and life. This is increasing the demand for trusted education franchises in these areas.

Conclusion:

Tier 2 and Tier 3 cities in India are becoming popular hubs for education franchises because of their growing population, increasing demand for quality education, and lower competition compared to metro cities. As more families prioritise education and local entrepreneurs look for trusted business models, educational franchises offer a perfect match. With rising awareness, government support, and better infrastructure, these smaller cities present a big opportunity for long-term growth in the education sector.

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.