The concept of ‘franchise schools’ is slowly catching pace in India. Let us deal in detail on what franchise schools are and what aspects should be taken into consideration while starting a school franchise in India.
Franchise Schools is one of the upcoming things that are becoming popular in India. Franchise schools are a perfect solution for all those parents who want their children to attend a well-ranked school but have no easy access to them.
What are ‘Franchise Schools’?
Franchise schools are nothing but setting up of an affiliated school of an already well established and well functioning school or educational institution. Such an affiliated school, by the virtue of its affiliation, immediately gets the brand name as well as the hard-earned reputation and goodwill of the already existing institution.
Advantages of Getting a Franchise
For a budding entrepreneur, creating a mark or reputation is of utmost importance. It is in such case that when someone has to open a school in India, franchise option becomes useful. This is because the name and associated goodwill come automatically to the franchise as well. So the business is almost made available to you. So the otherwise additional costs that businesses incur in procuring suppliers or undertaking training all get eliminated in case of a franchise that becomes a major advantage.
Things to Remember before you Sign the Dotted Line
The nature of Franchise contracts varies depending upon the nature and kind of industry of which franchise is to be applied to. Generally speaking, a franchise agreement includes three types of payments that need to be made by the applicant. These payments include the upfront fee that the applicant pays in order to get the franchise, the payment for training, equipment or any other such costs so incurred and lastly, the royalty payment made by the franchisee or a fixed percentage of the business sales as the contract may state.
All said and done, one thing which the franchise holder should always bear in mind while looking for School Franchise Opportunities is that the contract, by nature is temporary and not permanent in nature. Hence, under any cost, franchise can never get the same status as that of ownership. While the term of such a franchise may differ, yet, under certain specified circumstances, violation of any term may result in the termination of contract.
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