FRAN­CHIS­ING GROWTH

Sev­eral pro­fes­sional aca­demi­cians as well as en­trepreneurs are choos­ing to go the fran­chise way in the tu­to­rial and coach­ing in­dus­try.

India Today - - GUEST COLUMN - AAKASH CHAUDHRY The pri­mary fac­tor is whether the fran­chisee is ca­pa­ble of pro­vid­ing the same stan­dard of coach­ing as the par­ent com­pany

The tu­to­rial and coach­ing in­dus­try in In­dia has been bour­geon­ing over the last decade at a very promis­ing rate. In­dian par­ents’ aca­demic as­pi­ra­tions for their chil­dren are driv­ing the growth of this in­dus­try. As per a sur­vey by AS­SOCHAM, the size of the pri­vate coach­ing in­dus­try in In­dia was about $ 23.7 bil­lion in 2013 ( Rs 1,41,416.33 crore) and is likely to touch $ 40 bil­lion ( Rs 2,38,677.36 crore) by 2015. With the way things are pro­gress­ing, the in­dus­try is get­ting in­creas­ingly or­gan­ised. Teach­ers are no longer look­ing at coach­ing as a way of earn­ing a par­al­lel in­come but are plung­ing into this lu­cra­tive and very ful­fill­ing pro­fes­sion in a very metic­u­lous man­ner. This is where the fran­chis­ing model comes into play in this sec­tor.

Those who are look­ing to make a mark as pro­fes­sional tu­tors are opt­ing to take on fran­chises of es­tab­lished in­sti­tutes. A fran­chise of an al­ready re­puted name comes with its stamp of qual­ity and as­sur­ance of high level aca­demic com­pe­tence. Hence, par­ents pre­fer to send their chil­dren to such fran­chises as they feel as­sured of good re­sults and the re­quired level of prow­ess in the fac­ulty. Keep­ing this in view, sev­eral pro­fes­sional aca­demi­cians as well as en­trepreneurs are choos­ing to go the fran­chise way. They are en­ter­ing into as­so­ci­a­tions with well- re­garded tu­to­rial providers to give their busi­ness the right spring­board for suc­cess. This is a mu­tu­ally ben­e­fi­cial part­ner­ship as the new en­tre­pre­neur finds a ready mar­ket for his/ her ser­vices and the coach­ing in­sti­tute’s name spreads across the length and breadth of the coun­try.

Re­puted in­sti­tutes, how­ever, are ex­tremely care­ful be­fore they en­ter into a fran­chise agree­ment with any tu­tor or busi­ness per­son. The fran­chise model en­ables the in­sti­tute to pen­e­trate its reach in tier two and tier three cities of the coun­try and to bridge the gap of lit­er­acy through scholarships, vir­tual class rooms, tablets etc. Yet, there are var­i­ous strin­gent eval­u­a­tions that are car­ried out be­fore an agree­ment for fran­chis­ing is en­tered into.

The pri­mary fac­tor to be con­sid­ered is whether the fran­chisee is ca­pa­ble and equipped to pro­vide the same stan­dard of coach­ing to its stu­dents as the par­ent com­pany. Since the fran­chisee will bear the com­pany’s trade­mark, it is im­per­a­tive that the rep­u­ta­tion of the fran­chisor is main­tained. There are sev­eral other ar­eas that are scru­ti­nised be­fore one en­ters into a fran­chise agree­ment. An un­der­stand­ing of the lo­cal mar­ket that the fran­chisee is pen­e­trat­ing is very es­sen­tial. One has to also make cer­tain that the per­son tak­ing up the fran­chise has a 100 per cent com­mit­ment to­wards the cause of coach­ing and will not run it as just a means to make money since the fu­ture of stu­dents is at stake. The fi­nan­cial ca­pa­bil­ity to meet the fran­chisor’s stan­dards of IT, in­fra­struc­ture, nec­es­sary fa­cil­i­ties, and equip­ments is also a key el­e­ment.

The fran­chis­ing model has a very promis­ing fu­ture when it comes to the coach­ing in­dus­try. How­ever, the model has to be well- ex­e­cuted. In some cases, the de­gree of pre­ci­sion re­quired when draw­ing a fran­chise agree­ment in this spe­cific in­dus­try may be much higher than other in­dus­tries. This is for the sim­ple rea­son that be­sides run­ning a busi­ness, one is also mak­ing the prom­ise of shap­ing the fu­ture of the youth of this coun­try. If the fran­chisee is able to meet the ex­pected stan­dards set up by in­sti­tutes of na­tional re­pute, the al­liance can be very fruit­ful for the fran­chisee, the par­ent com­pany and most of all, for stu­dents in all parts of the na­tion.

Chaudhry is di­rec­tor, Aakash Ed­u­ca­tional Ser­vices

Pho­to­graph by RA­JWANT RAWAT

A fran­chise of a re­puted name comes

with its stamp of qual­ity

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