How these preschools script success through franchising

With the rapid growth of population and disposable incomes in India, the demand for education is increasing by leaps and bounds. According to the Indian Brand Equity Foundation, in 2015-16, the Indian education market was worth about US$ 100 billion and is expected to reach US$ 116.4 billion in FY 2016-17. The pre-school segment makes for 1.6 per cent of this market and this number is growing each year with an increasing number of people realising the importance of early education.

Early education builds the foundation for a child’s physical, intellectual, emotional and social well-being. As a high proportion of learning takes place till age 8, it becomes imperative to provide a child with high quality personal care and learning experiences. As the demand for schools that give a child the best of everything grows, the market of early education is becoming bigger each day. Hence, many preschools have resorted to go for franchising to make their presence felt at a larger space.

Here are six preschools that are rapidly expanding in India, proving that franchising in the education sector is indeed a real and successful deal.

Kidzee

A part of Zee Learn Ltd and a pioneer in ECCE (Early Childhood Care and Education), Kidzee is the largest preschool chain in Asia. With an incredible network of more than 1500+ centres in over 550+ cities, it is committed to spearheading child development across the nation. It was entitled as the franchisor of the year in 2010.

The school’s pedagogy makes it different from other schools. Illume, a program that enables a different learning system for every kid depending on their potential, is their in-house pedagogy for Kidzee pre-schools. It is the only indigenously developed pedagogy for India through extensive research.

Kidzee Franchise Requirements:

• Investment capacity of franchisee: Rs. 8 lakhs to Rs. 10 lakhs

Franchisor Support:

• Pre and post launch support
• Advertising and marketing support
• Branch design and development support
• Training and support from skilled staff

TreeHouse

TreeHouse is one of the leading preschool chains in India with over 500 centres nationwide since its inception in Mumbai in the year 2003. They now operate the largest number of self-operated preschools in India, across 33 cities in India.

In the recent years, Tree House has branched into providing educational services to K-12 schools and are providing such services to about 12 schools in 4 cities in India.

In fact, Tree House, a play school under Tree House Education and Accessories Ltd, is also indexed in BSE and NSE.

TreeHouse Franchise Requirements:

• An initial investment of INR 5-10 lakhs, which includes the start-up franchise fee and the equipment costs for the school.

Franchisor Support:

• Training program available for the franchisee
• Software / Hardware support included in the franchise fees
• Help rendered in selecting the site.
• Renewable franchise contract

Hello Kids

Hello Kids is the first preschool to target the middle-income band in India. The network currently holds more than 285 branches across 22 + states. The school ensures the all-round development of children and exposes them to many aspects of life.

Hello Kids is one of the most preferred schools for franchising as it does not charge any royalty fee.

Hello Kids Franchisee Requirements:

• An initial investment of less than Rs. 10 lakhs. No royalty fee.

Franchisor Support:

• Proper training is provided to the teachers.
• Assistance in development of the school from exterior to interior designing, furniture etc.
• Support in marketing process to ensure the business does well.
• The management also helps in designing a good curriculum, selecting course books, designing brochures etc.
• Continuously upgrading the curriculum and modifying all the necessary aspects continuously.

Shemrock

Established in 1989, Shemrock started franchising in 1991 and has over 625 branches across India, Nepal and Bangladesh presently. Shemrock’s philosophy is to have a school where children enjoy more, hence, it has its curriculum moving around this philosophy.

Shemrock’s USP is its strong research and development wing focusing on developing curriculum, keeping in mind what a child needs, parents’ expectation and what a formal school expects.

Shemrock Franchisee Requirements:

• Investment: Rs 6 to 10 lakhs (depending on the city & location) on the infrastructure.
• License Fee: Rs 2 to 6 lakhs (depending on the city) at the time of agreement.

Franchisor Support:

• Providing staff with the right training, tools and support.
• Continuous updated and improved system with the best available international concepts.
• Proven curriculum & system

EuroKids

EuroKids is a well-known chain of preschools in India, founded in 2001 and operating more than 800 centres in more than 300 towns across the country. EuroKids works towards exploring the innate potential of each child believing each child to be unique. The content, execution, scalability, standardisation, monitoring and experience in the pre-school space, is the unique selling proposition of EuroKids.

EuroKids Franchisee Requirements:

• An initial investment of Rs. 10 to Rs. 15 lakhs.

Franchisor Support:

• Extensive training program on the business strategies.
• Staff members to receive initial and continuous training for the EuroKids curriculum and the delivery method.

Kangaroo Kids

At Kangaroo Kids Education Ltd (KKEL) action-based learning is elevated to the next stage using innovative teaching methods. Kangaroo Kids Preschool is recognised by mainstream schools as an institution that produces confident, creative and eager learners.

Holistic education which is learner centric, of superior quality and research-based is the USP of Kangaroo Kids Pre-school. India has over 100 Kangaroo Kids schools spread over 30 cities.

Kangaroo Kids Franchisee Requirements:

• Investment: Rs. 30 to Rs. 50 lakhs
• Franchise/Brand Fee: Rs. 3 lakhs

Franchisor Support:

• Detailed operating manuals for franchise
• Training at HO (In Mumbai) & On Site @ Franchisee Location
• Field assistance
• Support in site selection

The pre-school market is being seen as having a huge scope for innovations, collaborations and more franchising opportunities. As the education industry opens its wings to more investments, expansion is the survival strategy. As Amol Arora, Chairman, Shemrock & Shemford Group of Schools, puts it, “We need to bring investment in education, we need technology in education and invest in children’s future.”