Singapore has consistently been one of the best countries in education, not just in Asia but globally. This is evident with the increasing number of schools and education centres. Franchise opportunities have also increased in the last few years.
There are several reasons why learning franchise opportunities are on the rise in Singapore:
Faster Expansion
Education in Singapore has attracted investors who have consistently pushed for quality education. As the demand for spots in the school increases, entrepreneurs naturally realize some parents travel long distances to bring their children to school.
There is another group of parents and children who would love to join a specific school, but the distance they would have to cover to get to the school doesn’t make sense in terms of cost and time of travel.
The solution is to expand. Unfortunately, many entrepreneurs cannot afford the cost. They may also need help managing multiple locations simultaneously. This makes franchising ideal since other entrepreneurs will finance and manage the new locations.
Low Marketing Costs
One of the challenges that all businesses face is building the brand. In the beginning, the cost is high because the business has to spend a lot marketing the business.
Running an education facility is even more difficult because parents are skeptical about sending their children to a new school. Even if the fees are lower, most parents prefer paying more in an established school. It would take time to get parents to enrol their children.
A learning franchise doesn’t have most of these challenges because the name is already known. The new school will also ride on the success of the other schools, so the chances of having students immediately the doors open are high.
This is why the parent school insists on strict training and mimicking of services to ensure parents see little difference in the multiple locations.
The Failure Rate Is Low
30% of startups in Singapore and worldwide fail within the first three years. Franchising reduces the possibility of failure because more people assume the new establishment is a new branch.
So, instead of looking at the new education franchise as a new establishment, people see it as a continuation of the same service, so they are more willing to invest in it. Unfortunately, new businesses do not face the same response from the public.
The School Makes Profits Faster
An education business franchise will start to make profits faster because the brand is known. This is especially beneficial when the parent school is well-known to many parents. Once a franchise opens its doors in a new neighbourhood, the parents are more likely to be excited about the development.
Most parents will pay the fees because they believe they are getting the same quality of service, which is often the case. Most parent companies undertake vigorous training to ensure franchises do not ruin the brand with poor service.
Although education franchises set high standards, getting a franchise is better than starting a new school with an unknown name. Instead of starting small while attempting to lure parents into trusting you with their children, you can start big and see returns faster. The brand has already worked hard; you only need to maintain the set standards.
