Deeper Trends in Educational Franchises: Where Learning Meets Business Acumen

The franchise model has proven remarkably adaptable across various industries, and the education sector is no exception. Educational franchises are tapping into the growing demand for specialized skills, supplemental learning, and innovative approaches to prepare students for future success. Within this landscape, let's examine some deeper trends and a pioneering leader in children's business education:

Trends Shaping Educational Franchises

• Beyond Traditional Subjects: Educational franchises are no longer solely focused on core subjects like math and reading. We're seeing a rise in franchises specializing in STEM, coding, robotics, financial literacy, and even soft skills development.
• The Skills Gap: There's an urgent need to equip students with the skills they'll need in an increasingly complex and competitive workforce. Educational franchises are addressing this gap with a focus on entrepreneurship, problem-solving, critical thinking, and adaptability.
• Technology-Driven Learning: From interactive online platforms to engaging educational apps, technology is reshaping learning environments. Educational franchises are embracing these tools to create dynamic and personalized experiences.
• Holistic Development: Parents are looking for well-rounded educational programs. Franchises that incorporate aspects of social-emotional learning, creativity, and leadership development alongside core subjects will stand out.

The MINIBOSS & BIGBOSS Model: Pioneering Business Education for Young Minds

Financing the Franchise

You are in business to make money and there's no point choosing a growth strategy that doesn't maximise your profit potential. 

 

Some franchisors would be more profitable if they owned their outlets themselves. On the other hand, they would never have grown to a 50- or 200-unit chain without franchising.

As with any business planning process, the financials have two different approaches:

• What will it cost me, so how much must I charge to make a sensible return?

• What price will the market bear, so what can I afford to spend to make the business profitable?

In franchising you have to address these questions both from your point of view, as the franchisor, and from the point of view of your franchisees. In constructing a viable financial plan for franchising a business, do not:

• Underestimate your initial costs and the associated financial prospects

• Overestimate the early growth rates when you're just learning how to attract the right prospects

• Assume you should make any real profit element on the initial fees. Good franchisors only profit when their franchisees profit

53 questions to ask a franchisor

Here are 53 questions that we recommend you put to any franchise business that you are considering joining.

All reputable franchisors will welcome these questions and indeed some of them will insist that you follow certain steps in the journey to becoming a franchisee —including, for example, that you take legal advice before signing the franchise agreement. You should never be afraid to ask a question and should carefully note and weigh up the reply making sure you receive a proper response. You should not rush your decisions when considering franchise opportunities.

On their Business

1.  How long have you been in franchising?
2.  How many franchised businesses are you running at the moment?
3.  What are the addresses of these businesses?
4.  May I interview any number of these franchisees? And may I choose whom I interview? 
5.  What does your head office organisation consist of?
6.  Can you demonstrate your capacity to provide the necessary follow-up services?
7.  May I take up your bank reference?
8.  Are there any other referees whom I may approach?
9.  How many franchise business failures have been experienced by your franchisees?
10.  On what basis do you choose your franchisees — how selective are you?
11.  How much working capital do I need?
12.  What will be the gross profit margin and what costs will I incur in arriving at a net profit?    (Do these figures take my salary and depreciation into account?)
13.  May I see actual accounts which confirm or fail to confirm your projections?
14.  Did you run your own pilot schemes before franchising?
15.  If not, why not?
16.  Whether you did or not, what is the extent of your own cash investment in the business?
17.  What financing arrangements can you make and what terms for repayment will there be? What rate of interest will be required — and will the finance company want security?
18.  When is the best time to open?
19.  What fees do you charge?
20.  Do you take any commission on supplies of goods or materials to a franchisee? Do I have to purchase all or just scheduled items from you? Does this apply to equipment?