blogs | ITI Solution

Blog

School franchise in India school franchise opportunity It is a good thing for those doing business in the education sector that the demand for high quality private schools is increasing, but it is also important to understand that the process of starting a school in India is not as easy as 'Do Dooni Char' ... More than 22 crore children in India are studying in schools. Even more important is that despite this 14 crore children are deprived of education. According to a general survey, India currently needs 2,00,000 more schools If you are thinking of doing something in the business of education, then this is the right time. Despite the tremendous demand for schools, that demand is not being met. That is why a huge market has been opened up to private investors not just to increase the figures, but also to improve the overall quality of education. How To Start A School Franchise Business in India Starting a school in India is not an easy thing. One, it contains many 'what to do' and 'what not' and the reason is obvious. No one can be allowed to start school in private and you can start this business only through registered society. Such an institution can be created only according to 'The Societies Act, 1860' or 'Public Trust Act' of the states. Another way is that a person can set up a company privately as per Section 25 of the Companies Act 1956. while establishing a school trust or society, it is also necessary to create a 'Memorandum of Association'. All these precautions are done to ensure that your school is being established as a non-profit institution. Apart from all these there are some essential licenses which should be taken from the concerned authority class. If a decision is made to establish a trust or society, the committee should have at least 5 to 6 members, together called the managing body. The body then has to choose the chairman, secretary and the speaker and formally declare it so that everyone in the society knows about it. Permissions and licenses The trust or company has to take several licenses while establishing a school. These include permissions for water and electricity use, and in particular the No Objection Certificate (NOC) for the land on which the school building is located. The NOC school is kept close by the existing educational institutions in that area and keeping in mind whether there is a need for a new school or not. The tying of the school is binding for the institution before the completion of three years of receipt of the certificate. If it is not, then a fresh certificate has to be applied again. It is also called a 'Certificate of Compulsory' (EC) and is issued by the education department of the state. Such land is usually issued through auction and at a subsidized price. This is done because the land is going to be used for education and there is no commercial approach to make personal profit out of it.In addition, a member of the managing committee can also convert his own land for educational purpose by applying for the required NOC.If you want to start only primary school, then you need to get permission from the Municipal Corporation only, but for secondary (class 6 to 8) and higher secondary school (classes 9-12) is necessary from the state education department Permission has to be taken. It is attained only when a school completes a two-year term as a primary school. Affiliation and other formalities The Central Board of Secondary Education (CBSE), the state government department and the Council for the Indian School Certificate Examination (CISCE) have set some specific orders for starting schools, which are binding. It is necessary to have a fully functioning and equipped sports system and playground in every school. The affiliation process is a simple step-by-step process and is transparent. School management has to comply with the items given in the test list to get affiliation. Before starting the operation of the school, it is necessary to do the following things systematically. They include details of purchase of land and construction expenses, water certificate, health certificate, periodic audit details, bank details of managing bodies and members, etc. What does investment range franchise mean and its types If you want to start your new business in a short time, then the best option for you is franchising. Through franchise, you can start a branch of your company in your state using the brand name of another company. For this, you have to contract with that company and also have to pay a fee for it. If you persuade the company to open a franchise, then you can use its brand, way of doing business, fixed price and technology, etc. How to open a school franchise Fees and Percentage Price • A fee is fixed for the franchisee of the company, which varies from company to company. If you want, you can also reduce this fee, but it will depend on your understanding of doing business. Instead of giving you permission to sell your product, some companies also charge you some percentage of the profit made in selling that product. It is like a fee and the percentage of the amount depends on the agreement with your company .. Main document for opening franchise Mainly you have to make FDD (Franchise Disclosure Document). All information related to your franchise is given in this document, such as how to run, where to open, and what your business proposal is based on. The second important document is the franchise agreement (letter of agreement), the company and your signature must be on this letter. Its main purpose is to obey the conditions of the franchisor and to make written agreement in evidence of trade related agreement. Terms and conditions for taking a franchise< To get the franchise, you have to pay the fees demanded by the company, not only this, the company also takes stock of your location, where you want to open the franchise. So you have to choose a proper place. You also have to make a business proposal for your franchise, in which all the documents related to the location and your franchise have to be given. So that the proof of opening of your franchise remains with the franchisor, for this you also have to prepare an agreement. After this, where you want to run this business, what kind of color is to be used on its walls. Where to buy its raw material? And what kind of decoration it will be. You have to start a franchise only after taking detailed information on all these things from the company. Not only this, all these things have to be written thoroughly in the operation menu of your franchise, you will be required to follow all the guidelines of the company while signing the franchise bond, and also have to assure them that you will also in the future Accepting his words will run the franchise well. Along with paying the franchise fee, you will have to pay some percentage profit to the company on selling per product, according to the agreement or contract letter. Benefits of opening a franchise< If you look at the benefits of the franchisor company, then it gets to invest money in its company, along with this the income of the company starts increasing. And with this, the company's product can be easily transported to every corner of the country and the world. As an example, If you have made someone your manager and he is also capable of doing well, but he is not concerned with the loss in your business. Not only this, his work cannot be completely trusted. On the other hand, the franchisee can trust the taker, because he is afraid of wasting his own money. Benefits to the franchisee If you want to take a franchise, then the most important advantage of this is that, with a very good company, it can easily reach its heights quickly by staying in the technology and structure of its business. There is no need to promote or market your branch. The company whose franchise you have taken is all the work of that company. Not only this, many people are automatically attracted to the name of the brand, that is, you get many customers even without working hard. The best advantage of this is that you never have to compromise the value of your product, even in the price fluctuations in the market, the value of your product is always good and stable because of the brand. Because people do not know that you are building it yourself. Risk of taking franchise If we talk about the drawbacks of the business of taking a franchise, then it also has some negative effects. If you have taken a franchise, then you also have to be tied to financial perspective for a long time. There is no limit to your daily work. Not only this, you also have to set your life goals in advance, as well as seek advice from your family as it is important to be with them. If you have any other or new way to grow this business quickly, then for that you will have to seek advice from the franchisor, meaning you will have to work within the scope of the franchisee company. If your business stops due to some reason, then the company giving the franchise has nothing to do with it. Meaning you will be responsible for the losses. Precautions to be taken in choosing a franchisee Before taking a franchise, you should know about things like market demand for that brand, how the company works, fees charged for taking the franchise and so on. Not only this, you also need to know carefully the benefits and conditions that come from it, so that you can avoid the problems faced in the business. Always test your ability and efficiency, because both of them are very much needed to move forward in this business. Meaning that you take a decision while keeping your talent in mind.