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Get schooled: the unstoppable popularity of education franchises

Get schooled: the unstoppable popularity of education franchises

Education is a cornerstone of our culture, and children-focused franchises are working to produce the savvy entrepreneurs of tomorrow

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It’s estimated that by 2020, there will be 80.3m children in the U.S. In densely populated countries like India, with vast, diverse education systems, there are already more than 260m students attending more than two million schools. If there was ever a concern that a franchise may not be able to find a market for its services, education brands should take a look at these statistics and breathe a sigh of relief.

Not only is there an audience for your education franchise; they’re raring to go.

The education industry is seeing consistent, exciting growth. Millions of parents around the globe are eager to give their children the best possible start in life, and they’re turning to the franchises that can fulfill their child’s full potential. This is far from just an American priority; in the U.K., nearly 27 per cent of schoolchildren were estimated to turn to the services of a private tutor in 2018, according to a survey by the Sutton Trust charity. In dense, urban areas, like London, this figure rises to roughly 44 per cent. In the U.K. alone, the private tutoring industry is worth over £6bn (roughly $7.4bn).

Worldwide success
Globally, this figure is anticipated to climb to $227.2bn by 2022; putting the education industry well ahead of many other sectors vying for a profit. However, as with areas such as fitness or care, educating offers much more than just money to franchisees. By providing quality-assured and rigorously honed teaching methods, operators of an education franchise have the personal fulfillment of helping children to be their very best selves.

“Find a niche that isn’t being done right now, or isn’t being done correctly, and make your mark”

Franchises within this sector are often specialist, as they provide a specific kind of education to the children and families unsatisfied by standard school practices. For some franchisors, innovation isn’t just a buzzword; it’s a necessity. David Graham, co-founder and CEO of Code Ninjas, says: “Find a niche that isn’t being done right now or isn’t being done correctly and make your mark. Don’t be afraid to go out there and try something new.”

Low overhead, high success
Naturally, the financial returns of an education franchise are still a primary focus for entrepreneurs investing valuable time and money into a mentoring concept, or a bespoke tutoring solution. This area of the sector is perhaps one of the most attractive: many concepts are structured so that they can be launched with low overheads, and hands-on franchisees will be able to run the business entirely from the comfort of their own home.

Innovative concepts like Tutor Doctor don’t require a fixed office address to teach children, and instead, work by educators visiting the homes of their clients to deliver exemplary lessons and results. “Being an in-home concept makes it really convenient for busy parents,” says Frank Milner, president of Tutor Doctor. “The fact that our service is one-to-one is the real power of our program.”

Naturally, for large-scale operations, the time and money required to launch a new franchise location varies. Kumon, one of the biggest names in the education franchising space, offers opportunities to entrepreneurs for the low franchise fee of $1,000. However, due to the necessary costs of operating the concept in a fixed address, with extra staff and facilities needed, the total initial investment actually sits around $64,400 - $160,975.

Teaching know-how
A common misconception of the education sector is that potential franchisees must come from a teaching background in order to qualify for business ownership. While some concepts may prefer that entrepreneurs undergo teacher training once they are awarded a franchise, this is certainly not a universal requirement.

As with any successful concept, education franchisors provide aspiring partners with detailed information packs that establish processes, marketing, and anything else they’d need in order to succeed. The main traits franchisors are looking for in their prospective franchisees are motivation, resilience, and a genuine passion for helping children to learn and become well-rounded adults. The financial returns of this industry aren’t to be ignored, but a drive to see others succeed will lead to ongoing fulfillment.

The best of the bunch are also future-proofing students for careers that are yet to come. Jeff King, CEO of the sustainability-focused franchise MUSE Global, sees this as a necessity: “The students we have right now could be in jobs in their twenties that don’t even exist yet. We’re teaching kids who may never drive a car, who may never see a live person at a grocery store or hotel, and who may never see a live truck driver on the road.”

If you’re looking for your next investment opportunity, and want to make a positive impact while doing it, then it could be time to go back to school.

For some franchisors, education needs a hands-on, human element to be effective and provide unbeatable value. MagiKats, a U.K. concept with locations in Austalia and the Middle East, doesn’t use computers or technology in its method. “Human interaction is always preferable,” says Sarah Marsh, director of operations. “We’re not just looking to deliver maths and English. We look to develop study skills and social skills, too.”


- 3.7% annual growth 2013-2018

- 80.3m children in the U.S. by 2020

- $227.2bn estimated worth by 2022

Also read
5 education franchises worth your investment

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