Pros and Cons of a Franchise Model

Early childhood education and care services in India are delivered outside the formal education system, by a diverse range of private, community and voluntary interests and are described variously as crèches, nurseries, pre-schools, playgroups and daycare services.  Pre-school market is still growing in India and is attracting many entrepreneurs to enter this space. The pre-school market is set to cross USD 1 billion (Rs 4525 Cr) by 2014, registering a high 36% annual growth.

But should you start your own business or buy a franchise of an already successful Pre-School business Model?

Franchising is a legal and commercial relationship between the owner of a trademark, service mark, brand name, or advertising symbol (the franchiser) and an individual or organization (the franchisee) wishing to use that identification in a business. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchiser or that meet the franchiser's quality standards.

Think of franchising -- or at least the costs of it -- as paying for the work someone else has already done in developing a successful business model, marketing strategy, and superior operations efficiencies. The key to finding a franchise opportunity that is right for you is research -- lots of research. You'll want to first decide how much of an investment you are willing or able to make which includes Initial fees, typical start-up costs from real estate to equipment. If you don't do as much research as you should have and find yourself with the wrong franchise, you may be stuck for many years.

Benefits of Franchise business

1. The biggest advantage of buying into an established franchise is the strength of the brand and loyalty of its customers.

2. Franchises often have well prepared marketing materials for a local campaign.

3. Franchisers often have established relationships with suppliers for all the materials franchisees need

4. Some of the better franchise operations offer management and technical training.

5. There's no need to reinvent the wheel as franchisees get access to all the trade secrets.

Cons of Franchise Business

1. Initial Payout involves Franchise Fee and Start-up Costs.

2. Locked into Operation by Long-Term Contract. If you don't do as much research as you should have and find yourself with the wrong franchise, you may be stuck for many years.

3. Most franchise contracts have very explicit standards, allowing little or no alterations or additions to the brand, stifling any creativity on the part of the franchisee. You must use their system, follow their rules.

Springboard Franchise Advantages

1. We don’t charge franchisee fee. We reduce the burden of or risk involved in initial investments.

1. Franchisers are given freedom to put their ideas on table and brainstorm with in-house experts on activities.

2. We maintain a good relation with franchisers and the legal document is framed in such a way which protects both parties interest.