Jul 26, 2022
Are Education Franchises Profitable?
It's no secret that education is important, but did you know that it's also a massive industry? In fact, the education industry in the United States is expected to be worth a whopping $2.3 trillion by 2028.
So, what if you want a slice of this pie? How do you join the education industry? And is running education franchises really as profitable as it seems?
Well, like any other business venture, there are some pros and cons to starting an education business. Starting a school can be a hefty investment. However, you could find that it's well worth the cost.
Advantages of Investing in Education Franchises
If you want to join the education industry, joining a school franchise is one of the best ways to do it.
Pre-school franchises, in particular, are seemingly becoming increasingly popular as more parents become concerned with early childhood education. In fact, parents enrolled an estimated 61% of all US children aged 3-5 in some kind of pre-school in 2019.
All in all, starting a business in education is easier when joining a franchise. Some of the benefits of franchise opportunities include:
Increased Name Recognition
Obviously, parents want to send their children to a school they can trust. Usually, to trust a school, parents need to recognize the name of the school.
Parents want to know that their child is in safe, educated, and caring hands. Some factors they'll likely consider when determining where to send their children for an early childhood education include:
Quality of education
One way that parents determine how well a school meets these criteria is by asking around. Friends, families, and neighbors will likely recommend a school to them. A school with national or name-brand prestige is likely going to get more frequent recommendations than a smaller, lesser-known school.
A school under the KLA Schools umbrella is able to harness the brand reputation which has been built up for years.
A Profitable Business Model That Works
Starting a business is a daunting and risky move. But, when you join a franchise opportunity, you know that you'll have a proven business model that works.
This is a benefit for both you and KLA Schools. This way, you won't have to worry about trying out any new and potentially risky concept. Instead, you can follow the proven business model and start raking in those profits.
Educational Resources Your Students
When you join an education franchise, you also gain access to all of its additional resources. Running a school and setting a curriculum can be hard on your own, but as part of a larger franchise, you get access to resources such as:
Unique and pre-built courses
Books and software
Online resources to share with students
Training programs for teachers and staff
Classroom tools for teachers and staff
All of these may improve the quality of education your students receive, thus boosting your local reputation.
Business Resources for You and Your Staff
Educational resources aren't the only things a larger education franchise can provide to you. You'll also gain access to resources that help you keep your business running smoothly. Some of these resources include:
Business operations training
Help with paperwork, regulations, and other required permissions
Obviously, when you open a school, you want to provide your students with the best education possible. But, if you're struggling to keep up with the business demands of your school, the actual education could end up falling to the wayside.
Luckily, when you join a larger franchise, they help you take care of all the more mundane business tasks. This is especially helpful for people who are just learning how to run their own businesses.
Additionally, regulations in the education industry are constantly changing. As a franchise owner, the larger KLA system helps keep you up-to-date with any regulatory changes.
Disadvantages of Joining an Education Franchise
Of course, like all business models, there may be some potential downsides to investing in an educational franchise. While the benefits are huge, especially for young or new business owners, you do need to take these considerations into account.
The biggest downsides to working with an education franchise include:
Fees and Costly Investments
When you join a franchise opportunity, there are a few costs associated.
When you sign on to a franchise, you typically agree to pay both your initial investment fee and royalty fees. Royalty fees are typically a set percentage of the revenue you generate.
Royalty fees are generally the payment you give to the larger company in order to utilize its resources. However, many franchise owners often find these fees to be worth it for the added benefits of working with the larger company.
When you operate as a franchise, you do have to follow the rules set forth by the larger company. Franchise owners must agree to operate within these set guidelines.
Typically, signing onto a franchise means that you agree to use the KLA school's name, curriculum, marketing materials, training programs, and overall regulations and rules.
Most franchise owners do not find these restrictions to be a problem. Some may even see these guidelines as a benefit rather than a disadvantage, as they can help guide the founding and operations of your school.
However, if your goal is to have more of an independent learning environment, becoming a franchise owner may not be right for you.
Is Owning a Franchise Right for You?
Education franchises are a great way to start your own school and bring more educational opportunities to your community. However, you must be willing to work within their guidelines and ready to make the necessary investment.
If running a KLA Schools franchise sounds like the perfect opportunity for you, please request more information. We are always looking for passionate and caring educators to help educate the minds of tomorrow.