So, are you on the lookout for the best education franchise opportunities in 2024? With India's education sector expanding at a rapid pace, investing in an education business franchise is set to be a lucrative and fruitful decision. In this blog, we are going to cover the top five education franchises in India, along with the required investment, expected returns, and possible challenges.
As per the Independent Skill Development Mission, the Indian education sector is valued approximately at $100 Billion and is growing quite fast. In doing so, it creates ample opportunities for school franchise in India and other education franchise opportunities. Such a franchise business will save hours of market research for you, as you would work with a pre-established brand, having a tested performance record.
1. Preschool Franchise
Investment and Growth Potential
In 2023 Indian childcare and preschools had a market of about ₹348.6 billion; the expected growth rate is 10% per year reaching ₹10.2 billion by 2032. Prompt demand for wholesome early education and working parents make Indian preschool education franchises a good investment opportunity.
Franchise Cost
An investment of ₹20 lakh to ₹50 lakh would be needed for establishing a preschool education-based school franchise, depending on the brand, location, and size of the school. Besides the overall expenditure on infrastructure, teaching aids, licensing, marketing, and payroll expenses.
Expected Returns
A preschool educational business franchise attains an average return on investment of 35% while breakeven can take between only 2 to 3 years. The success depends on factors like location, the branding reputation, and the quality of the service.
Challenges
- Following strict regulatory compliance and educational requirements
- Sustaining quality education and care through ongoing staff development
- Differentiating in a competitive market
2. Tutoring and Entrance Exam Coaching Franchise
Industry Insights
The international test preparation and tutoring industry is expected to expand by 5.5% per annum between 2024 and 2032. India's competitive education system and growing need for customized coaching provide a great opportunity for an education franchise.
Franchise Cost
Investment in exam coaching and tutoring franchises differs, with investments between ₹5 lakh(for brands such as MIITJEE) to ₹30 lakh(for institutes such as Kota Talent Academy). Space needed for such franchises fluctuates from 2,500 to 10,000 sq. ft.
Expected Returns
Tutoring and coaching education franchises in India provide returns of around 30–40%, while in the best-case scenario, the break-even period could be achieved in 1–2 years. Returns are dependent upon various factors, including brand image, location, and different teaching methodologies.
Challenges
- High competition in the tutoring marketFacing competition in the tutoring industry
- Need for innovative teaching methods to differentiate from competitorsIncrease innovative teaching methodology to stand out
- Differentiation keep students reputation
3. Overseas Education Franchise
Industry Potential
With more than 1.3 million Indian students pursuing education abroad, India spends close to ₹4.98 lakh crore on foreign education. Hence, overseas education franchises can be very lucrative businesses.
Franchise Cost
Investment in an international education franchise in India is different:
- High-investment options like KC Overseas Education, whose fees exceed ₹10 lakh in India
- While affordable options like Edumilestones incur only a one-time fee of ₹75,000 with no royalty charges
Expected Returns
Franchise overseas education is an economically profitable venture: earning per student application could be anywhere between ₹80,000 to ₹2 lakh. The breakeven point would, however, be attained within a period of two years, but less than two years is also attainable with a low-cost model such as Edumilestones.
Challenges
- Adjustment to culture and educational disparity in various countries.
- Managing high operational costs and human resource issues.
- Understanding the needs of international students.
4. Career Counseling Franchise
Market Demand
There are 14 lakh trained career counselors currently in shortage, and over 90% of schools in India do not have career counselors in place. The market for education franchises in India dealing especially with career guidance is therefore huge. The career counseling industry is worth ₹5,000 crore and is growing fast
Franchise Cost
A career counseling education franchise involves a funding requirement of approx ₹65,000 for training, technology platforms and business assistance. Online modes, like Edumilestones, do away with any infrastructure expenses and are economical.
Expected Returns
Career counselors can charge ₹4,000 for each student per session. Conducting 25 sessions a month can amount to ₹1 lakh a month of income, which means ₹6-10 lakh annual income.
Challenges
- Establishing a solid bank of clients in another country
- Creating successful branding and marketing strategies
- Keeping current with new career trends and technologies
5. K-12 School Franchise
Growing Demand
Because of India's increasing emphasis on quality education, K-12 schools license themselves as one of the most lucrative education businesses. Some factors boosting this sector are international curricula and technology-based learning.
Franchise Cost
To open a school franchise in India, one must invest quite a sizable sum between ₹50 lakh and ₹5 crore. Depending upon the brand and the location, it further includes land, infrastructure, teachers' salaries, and technology incorporation.
Expected Returns
The return on profit for school franchises for K-12 is around 25-30%. Typically, it takes some good 4-5 years in terms of break-even time, while this is a long-term but sure-shot profitable enterprise.
Challenges
- Big startup investment, fixed costs are too high
- Difficult regulatory approvals
- Always to maintain a high educational level
