Preschool Franchise or Start your Own Preschool
If you are running at Superlative Jet Speed towards signing up for a Preschool Franchise, then take a deep breath and go through the below mentioned points, in the slowest possible manner:
India still has less numbers of Preschool Franchisers then required. But whether any, few or all, stands for the betterment of Preschool Education, Franchised Industry or Education Industry is a big Question Mark.
First of all let’s brief down the benefits which Preschool Franchiser offers (at least, as mentioned in Sales Prospectus of Preschool Franchisers):
- Reputed Brand
- Quality Training
- Established Business Model
- Business Know-how’s
- Continuous Support
- Long Term Contract / Associations
- Low Royalty
- Sales & Marketing Support
- Economy of Scale
Before understanding and doing in-depth analysis of above mentioned 9 words, let’s understand the term “Preschool Franchise”.
Very naturally the phrase “Preschool Franchise” consists of two words –
First, Preschool; Second, Franchise.
Preschool : The Definition
I will not enter into the definition side of “Preschool” from the Academic Road, but from the Business Road. Preschool in India is referred to the place which conducts Academic & Non-Academic Programs for the children belonging to age group of One and Half Year to Five and Half Year.
As a matter of fact, (some are good and some bad or worse) Preschool in India has below mentioned signifying points:
- No (or very less) Legal Formalities
- Requires Low Investment
- Generally started by people who have vacant space, which in general nobody would be willing to take on rent, or it will become riskier for the owner to give it on rent (India is a dangerous place…just joking)
- Most of BIG (Plus Two Schools) Schools have started it.
- Preschools, in certain areas could only be started at such earmarked place.
- Most of the Preschool Teachers, those who are married and have somewhat sound savings, dreams of starting Preschool.
- Preschool business is thought to be the safest business.
- Preschool Business is considered to have lowest Break Even Point.
- Most of the Preschool Operators / Owners, considers only Marketing as KEY and Important thing to be done.
- Most of the Preschool Customers still think that Preschool Operators / Owners are highly Unprofessional and mainly do not know anything about Preschool Education.
- Most of the Preschool Operators / Owners think that Preschool is a robust Show Business (even more than Hotel Business).
- Preschool Franchisers thinks Franchising of Preschool is the easiest way to proverbially “Mint Money”.
- Preschools in India can boast (???) to have the least paid staff in comparison with all other work / Industry.
Franchise : The Definition
The only one way to enter into the definition side of “Franchise” is from the Business Road.
Franchised Education Industry in India has below mentioned signifying points:
Preschool Education Industry in India is having the maximum number of Franchisers.
Unlike any other Business in India, Preschool Franchisers generally come from small / medium investment capacity.
Just like MLM / Ponzi scheme, “Franchise” is also dreadful word among Investors / Business Community, but most of them considering ‘Quick’ Money enters into it.
Unlike other Franchise Business, Franchised Education Business in India attracts maximum number of Franchisee from zero i.e. NO background of such business or any business.
Franchising, in India is considered to be the way (in certain cases, the only possible way) to become an Entrepreneur.
India, again, can boast to be a business place to have the least number of Legal Dispute between Franchisee and Franchiser. Whereas, India is a proud (!) place to have maximum number of Criminal Cases between Husband and Wife (among all countries of the world). God save Indian Families… Why such disparity ??? (Till now, only one IT Education Franchiser (big player) was filed with a case by its Franchisee (Union of Franchisee), and Franchiser went on to win the Legal Battle)
In simple term, Franchise means to transfer the right, to use or carry on the business, having unique Product / Service Delivery or Manufacturing Process, using some proprietary mark.™ (™ Copyrisghts Reserved with Rewati Raman Vishewar). For example, in case of IT Education & Spoken English Education, such uniqueness might be the Book / Curricular Material / Right to use software. In case of, Preschool Education such uniqueness might be the Book / Curricular Material / Specialized Toys etc.
Preschool Franchise : The Definitive Phrase or Oxymoron
I hope, the readers till now must have understood that in clear parlance and more clearer sense, the phrase “Preschool Franchise” to satisfy its existence , Preschool Franchisers must have something unique, which nobody else possess.
Let us now start dissecting, the above mentioned Nine Points, generally found in Sales Prospectus of Preschool Franchisers.
Here, I will not get into the various definitions and elements of Branding and brand, because that would not even be covered in 1000 pages. One of the Greatest Advertising and Marketing Guru, David Ogilvy’s definition of a Brand is: “The intangible sum of a product’s attributes: its name, packaging, and price, its history, its reputation, and the way it’s advertised.”
I think, the above mentioned definition of Brand encapsulates lot many aspects and gives a clearer picture about the word – ‘Brand’.
Generally, the prospective Franchisee thinks ‘Reputed Brand’, as something which will generate Quick and large Number of Admissions into his/her Preschool. But, which Preschool Brand in India guarantees (‘GUARANTEE’) this. And, even if some guarantees, is having enough admissions in One Academic Year, a sufficient thing.
Quality Training into the Preschool education Scenario would require these:
Appropriate and Good Preschool / Play School Curriculum
Appropriate Methodology to Train Teachers over such Curriculum
Quality and Dedicated Trainer
Is prospective Franchisee seeing Big Question mark on Preschool Franchisers / Franchisers?
Established Business Model
Preschool Business is one of the easiest formats of business to be carried out. Various elements are necessary and needed to be of a particular standard, so as to deliver a proper Education. However, Standardization, is not only limited to Toys and Equipment, Fee Structure, Look / Design of the Preschool / Play School. Standardized Business Model and Established Business Model are surely two different terms.
This involves entire elements (proverbially a to z things) relating to running, maintenance and set up of a Preschool. It also involves solving daily nitty-gritties. Such all things essentially require the Preschool / Play School Franchiser / Franchiser to have talented manpower / manager, who is in direct contact with Preschool Operators / Franchisee. Go ahead, check on ‘QUALITY’ Managers Preschool / Play School Franchiser / Franchiser has.
Continuous Support, in case of Preschool / Play School, is mostly in relation to Delivery of Preschool / Play School Curriculum.
This also requires the Preschool / Play School Franchiser / Franchiser to have talented Academic Trainer, who is in direct contact with Preschool Operators / Franchisee. Go ahead, check on ‘QUALITY’ Trainers Preschool / Play School Franchiser / Franchiser has.
Since Continuous Support in most cases is required in relation to Preschool Curriculum and Delivery of Curriculum, these three things would be required. One, Appropriate and Good Preschool / Play School Curriculum, Two, Appropriate Methodology to Train Teachers over such Curriculum, Three, Quality and Dedicated Trainer.
Long Term Contract / Associations
Any Preschool requires assistance in terms of Manpower, Training, Materials, Sales and Marketing support and others.
Prospective Preschool Operator shall always consider “the REAL Support being received” and not only “the Contract / Associations on paper”.
Royalty whether being Low or High shall never be a matter of concern for any Franchisee, as long as the Franchisee gets its due, that means whatever is being paid by Franchisee in the form of Royalty or in any other form, the proper value, in lieu of that payment, shall be delivered to Franchisee by the Preschool / Play School Franchiser.
Money being paid should always be measured in terms of VALUE, and not only Quantitatively.
Sales & Marketing Support
Sales and Marketing support can be listed as follows:
News Papers Advertisements
However, the most important, of all types of Marketing Support, is the Counsellor Training, which is basically ‘SALES’ Training.
Economy of Scale
The Concept “Economy of Scale” has very little or NO role to play into Franchising of Preschool / Play School. In most of the cases, Toys and Equipment required at Preschool, being supplied by Franchisers are priced, higher than it is being provided by manufacturer of such Preschool Toys and Equipment. Bags, diaries, notebooks, belts etc are materials which form a very less percentage of total outlay / expenses, and hence even slight lower charge is not going to affect the overall profit.
The one and most important thing around which each aspect of preschool revolves is the Curriculum and this is entirely missing from all Preschools, be it, individual Preschools, Preschool chains and Preschool Franchise offerings.
© Copyrights Reserved with Writer Rewati Raman Vishewar
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