School Franchise in India: Growth prospects
When we refer to franchise we mean business format franchise. Business format franchise is the model as per which the business model is shared by the franchisor with the franchisee. The latter is liable to some rights, ownership and operational rights, which ensure that the franchisee functions independently and as agreed by the franchisor and franchisee.
The growth of school franchise in India has observed a regular incline in the previous decade. One of the growing trends is to establish a business that has a worldwide appeal.
With the coming of foreign brands in the country, many entrepreneurs entered into franchise agreements with the known brands. As the franchise model demands lower capital investment, there has been mushrooming of popular products and services in the country.
Not only this, certain Indian brands have also become very popular in the country and thus tempting the investors to enter into partnerships. Behind the success of franchise model for any type of business, there should are certain requirements that should be fulfilled. The prominent among them is the supply-demand function.
School franchise in India has great prospects as the demand for the same is immense. India is the second most populous country in the world and the slot that is primary and secondary education offers innumerable opportunities.
In the last two decades a number of school chains have been doing successful business and growing slowly and gradually. The growth of some of them has been majorly due to an established franchise model.
There is crucial evidence in support of the argument and that is the growing demand. Private ownership and commercial enterprises have not been allowed to take advantage of the opportunities by the Indian government. The government has been apprehensive at it believes that commercial motives will create greater disparity among the children receiving the education. But it has been unsuccessful of handling the issue due to overabundant demand and lack of resources and infrastructure.
The situation has compelled the government to provide for some flexibility. In the time to come there would be more interventions from the private enterprises and undertakings. Many institutions have already intensified their efforts.
Since some schools have already made their presence in the country, therefore franchising and multiplying the units has become quite desirable. This is the story behind the growth of the popular school chains and the significance school franchise in India has been accumulating over years.