Are you looking for Best Education franchises in 2024? Explore the top 5 best education franchises here: Know how to profit from the changing education landscape.
An article by the Independent Skill Development Mission states that, Indian education sector net worth is approximately $100 billion and is growing at a rapid pace.
This broad landscape provides franchises with various opportunities for growth and market penetration. The biggest advantage of owning an education franchise is that you save time on market research, as you are already familiar with the brand and its proven performance.
In this article, we’ll explore four pivotal types of profitable education franchises, covering important aspects like franchise opportunities, required franchise cost, expected returns, and potential challenges. By the end, you’ll gain a deep, strategic insight into the education franchise landscape, helping you make informed decisions with confidence.
Types of Education Franchises in India 2024
1.Preschool Franchise
In 2023, the Indian preschool and childcare market, was valued at approximately 348.6 billion. According to forecast by the IMARC Group market could grow to US$ 10.2 billion by 2032, showing a strong annual growth rate of 10% from 2024 to 2032.
For entrepreneurs, this growth translates into substantial business potential. With a growing focus on holistic development and the ability to cater to working parents, preschools are becoming an attractive venture.
Preschool Franchise Cost
Investing in a preschool education franchise requires an initial capital of approximately 20 lakhs to 50 lakhs. The exact cost can vary based on factors such as brand, location and the size of the facility. This franchise cost generally covers essential components, including infrastructure setup, educational equipment, licensing fees, marketing expenses, staff salaries, and other operating costs. It is very essential to secure your funding to maintain high-quality preschool franchise.
Expected Returns
The estimated returns for preschool are generally around 35% with 2-3 year break-even periods. Your expected returns depend on factors like brand choice, location, service quality and operational efficiency.
Potential Challenges
- Navigating regulatory compliance is complex and requires adherence to numerous health, safety, and educational standards.
- Ensuring consistent quality in education and care demands ongoing staff training and supervision.
- The competitive market necessitates effective differentiation and marketing to attract and retain students.
2.Tutoring and Entrance Exam Preparing Education Franchises
The global Exam Preparation and Tutoring market size is projected to expand at a rate of 5.5% annually from 2024 -2032. This sector is expanding swiftly offers opportunities for those looking to enter a profitable and scalable market. The growing middle class and competitive educational system makes tution and entrance exam sector more appealing and profitable.
Tutoring and Entrance Exam Franchise Cost
According to Franchise India, the tutoring and entrance exam preparation, the cost range from 5 lakhs (MIITJEE) to 30 lakhs (Kota Talent Academy), depending on the scale and brand. Space requirements for tutoring and entrance exam preparing education franchise is between 2,500 to 10,000 sq. ft. The exact investment and space required vary on brand and specific requirements you choose.
Expected Returns
In coaching and tutoring field, expected returns range between 30% to 40%. The break-even period is usually around 1 to 2 years. These figures can be based on various factors. The expected returns data provided is based on general industry insights and common estimates for coaching and tutoring franchises. It reflects typical return rates observed in the education sector.
Potential Challenges
- High Competitive market
- Demands innovative teaching methods
- Sustain student base is required
3.Overseas Education Franchise
Over 1.3 Million of Indian students are studying abroad. Indias expense on overseas education has reached around 4.98 lakh crores. This vast expenditure develops a large market for overseas education franchise in 2024.
Overseas Education Franchise Cost
Cost in overseas education franchise can be approached in two ways:
- High-Investment Franchise Opportunities - Franchise with well-established companies like KC Overseas education requires investments around 10 lakhs. These franchise opportunities are considered as high-investment franchise opportunities.
- Cost Effective Franchise Opportunities - By the Partner Model with Edumilestones, you can benefit the most affordable franchise opportunities. Edumilestones operates across 22+ countries and has tie-ups with 1,500+ university. Partners of Edumilestones enjoy 70% of payouts from universities. Additionally, you will receive your own branded study abroad tech platform. The Edumilestones study abroad partner is a one-time fee of 75,000, with no royalty payment required.
Expected Returns
Returns are very high in overseas franchises, with earnings per application between 80,000 to 2 lakhs. Once partnerships are established with the universities the pay-outs can vary. Franchise model takes around 2 years to achieve the break-even. However, with Edumilestones partner model, which requires low investment of 70,000-80,000 break-evens can be achieved with just a single application.
Potential Challenges
- Cultural difference, market competition, operational cost, human resource management and the need to adapt the brand to local markets.
- Understanding and adapting education and business differences across various countries requires expertise.
However, Edumilestones Study Abroad Partner Program offers zero operations cost, making it a streamlined option for you. For further details, click here.
4.Career Counselling Franchise
India faces a shortage of 14 lakh trained career counsellors. Over 90% of schools still lack dedicated career counsellors, highlighting the growing demand for career counsellors and career counselling in India. The career assessment and career guidance market is estimated to be around 5,000 crores and is still expanding, making it a most profitable venture for you to invest.
Career Counselling Franchise Cost
While investing in a career counselling franchise, it’s crucial to consider three primary factors: training, a tech platform, business and lead support. With these three factors one option to consider is, Edumilestones Career Counsellor Entrepreneur Program. With an estimated cost of 65,000 Edumilestones stands as the most cost-effective option and the highest-rated program. Since everything is online, there are no infrastructure costs.
Expected Returns
Career counselling franchises typically charge 4,000 per student for guidance session. With 25 career counselling sessions per month, you can expect about 1 lakh in monthly revenue or 6-10 lakh revenue annually. Offering high-quality services can boost your income further. These returns may vary based on location and the demand for career counselling.
Potential Challenges
- Marketing and branding, franchisor relationship, technology development are the fundamental challenges.
- New franchises often struggle to build a reliable client base and deliver consistent services to compete with more established organizations.
- Ensuring staff are well-trained and using up-to-date technology tools is essential for success in this field.
Conclusion
Ready to invest in the education sector? Remember success in this industry not only requires careful considerations of financial planning and effective management; it demands sustainability to face potential challenges. With careful considerations, your investment in education sector could lead to rewarding outcome.
