Why Should Franchisees Invest in Preschool Education?

The Indian preschool sector is experiencing rapid growth. A study by Ernst and Young estimated the market to cross $1 billion in 2012, with a growth rate of 35%[i]. As per the latest report by Mint in Jan 2015, the education market in India, which is presently worth around Rs 5.9 trillion ($92.98 billion), is poised for some major growth by 2020.

Preschool Franchise Opportunities

Considering the rapid growth of preschools in Tier III and Tier IV cities, the preschool education sector is expected to expand. In urban areas especially, a preschool is now considered a necessity by most parents. Preschools, popularly known as playschools, cater to children aged between two to four and seem to be a lucrative investment for franchisees and investors. With the entry of a number of reputed chains, national as well as international, this sector is witnessing immense growth and development.  With many of them opting for the franchise route to scale up their presence, the concept of franchising among interested and start-up entrepreneurs, has caught on fast in the last few years.

The best part about franchising is that the investment can be made in an already established business format, which enjoys its own brand value in the market. The preschool franchise model offers several advantages for a potential franchisee. Not only does it reduce the risk and gestation period associated with a business, it also provides an easy transfer of technical knowledge and the well-structured procedures and policies laid out by the franchiser. The advantage of partnering with a known brand helps in outreach and attracting more parents towards the school.  A franchisee doesn’t have to worry about research and development of curriculum as a set preschool curriculum developed by experts is provided by franchisors. The franchisee receives all the training materials, equipments, supplies, instruction manuals needed for running the preschool from franchiser. This also helps the franchisor in maintaining the standard of quality across centres. Another important thing to note is that it is quite simple and easy to obtain a loan for educational franchise business. From the franchisor’s perspective, the preschool business is not only rewarding; but also helps them quickly build up their presence in targeted geographical locations. The franchisor not only shares the brand image, but also their knowledge, experience, and technical expertise.

Many preschool brands in India are expanding its network through the franchising model which has led to a high growth rate in the industry. Sesame Street Preschool, from the family of the renowned Sesame Street- the world’s largest preschool educator is an early childhood education centre that is set to change the way children engage and learn. Sesame Street Preschool was set up with the aim to change the paradigm of preschool education in India – by offering high-quality educational resources and facilities to children across the country. It is setting a new standard for early childhood education through its unique preschool and afterschool programmes.  It is a learning experience brought to life by the fun and furry characters of Sesame Street and its Indian adaptation Galli Galli Sim Sim, India’s first educational programme just for children. Its unique approach to age-appropriate education puts kids at the centre of everything, from playful project-based activities to an environment made for rampant imagination. Its programmes introduce concepts not as stand-alone subjects but as a wealth of interconnected knowledge. When different streams of learning are taught together, children make more connections—multiplying the benefits to their education. With this interdisciplinary foundation, children grasp advanced concepts faster at the school level.

Sesame Schoolhouse’s Vice President, Ms. Mona Singh shares, “The franchise model allows us to continue to focus on our core competencies like content development, teacher training or adherence to standards of excellence. It also enables us to expand faster, especially to tier II cities where the need for high-quality education is great. We are continuously seeking franchisees that are aligned with our vision of providing superior educational experiences to children.”

Although the preschool sector offers tremendous opportunities for growth, franchisees do face certain challenges to achieve the desired objectives. Presently, preschools are primarily an urban phenomenon and rural areas are still to catch up on this trend. Also, due to lack of a proper regulatory mechanism and any guidelines or checks by the Government, unorganized players are mushrooming in this sector.

To overcome these challenges, franchisees should aim at satisfactory and fulfilling partnerships with established, credible preschool brands. They should, nevertheless, conduct a proper background research and discuss the terms and conditions carefully before formalizing the contract or partnerships in order to get the maximum benefits from this growing educational venture. A successful franchise relationship is based on constant and timely support and service, bringing benefits of visibility and optimised costs to the network that individual franchisees cannot do on their own. In conclusion, educational franchising is a rewarding opportunity for someone who wants to jet starts their business.

“Preschool Education in India”, Childology: Understanding Children, www.childology.in [accessed on 20 July 2015]

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