Whether it is buying a school franchise or selling a school franchise, the prospects for both are too good to be refused. School franchise requires a known school to open new branches by selling these units to different franchisees. The investments therefore are primarily made by the franchisee.
School franchise has been actuated by the rapid developments in the Indian education center. In cities and adjoining towns, economic growth and development has been accompanied by changing lifestyle and living standards. Leave alone the government spending; it is people who are spending good money on the education. As the needs of the people have been multiplying, so have the school units.
Business franchise has its own pros and cons. A keen look at school reveals following advantages:
1. Low Capital Investment:
Like other franchise models, school franchise is based on a low capital investment model. The cost cutting or reduction of costs happens due to the savings made in promoting and administering the school. With a decent franchise fee, a franchisee takes on a reputed name and details regarding running the school.
2. Regular Appreciations:
Schools are like assets and their value in those terms are supposed to change with the time. There are regular appreciations and regular increments based on appreciations of assets, including those of real estate.
3. Guaranteed Return on Investments:
School franchise guarantees returns as the gross transactions happen in real time and without any delays. Once the school is operational, school fee, admission fee and other payments are received forthwith.
4. Long Term Profits:
After buying a school franchise, the franchisee can run and operate the school for a long period of time, usually a couple of decades. Even if the franchise needs renewal, it is still a better choice. By the time a franchisee complete a term, he is skilled enough to run his own independent school.
5. Easy Procedures:
Schools, as they come under public domain, require a lot of paper work and liaising with the government agencies. However, by buying school franchise, the franchisee is relieved of these onerous procedures.
These are the some of the advantage that a franchisee avails by buying a franchise unit.