Preschool franchise vs preschool brand - Teeny Beans

Preschool Franchise Vs Your Own Preschool Brand

Rising preschool business and confusion over what is the best way to start a preschool? Don’t worry! We got you.

Many edupreneurs have stepped out today to invest in a preschool business, adhering to the fact that it’s an expanding opportunity today.

People are habitual to opt the easiest way to start something without putting their own efforts properly. Same is the case with preschool franchises.

Investing in preschool is a great opportunity. However, one needs to be aware of the possible choices and their pros and cons.

Ultimately, we don’t want you to be a victim of the suffering a preschool franchise lets its preschools face!

Every preschool doesn’t succeed

With the franchise industry rapidly growing across the nation, every business person desires to own a preschool through a preschool franchise since it’s the easier way.

Yet, your favorite preschool chain necessarily is not the most truthful to you. Preschool franchise owners are becoming used to extracting revenues from their franchisees which will leave you with almost nothing.

And it’s a fact that almost 7 out of 10 preschools do not succeed. Yes, that’s obviously true?

And this statement does shock you with the foremost lie a preschool franchise is telling you. Shaking off your trust isn’t the goal. Yet, being aware of your surroundings and for yourself is the most crucial.

With hundreds of preschool franchise franchise brands throughout the country and many preschools opening through them everyday, do you really think that all of them are succeeding?

Preschool franchise industry does benefits to the preschool owners, yet one can’t expect maximum support, return and interest from them.

While making the most significant choice of investment between opting a preschool franchise or starting your own preschool brand, it’s important that you are fully aware of what both of them offer.

Know the deep rooted issues with the preschool franchise industry that you are ignoring :

The business model of preschool franchise

A franchise refers to a form of business where the owner (franchisor) of a product or service chooses to distribute the rights of dealing in that product or service to others (franchisees) and receives a wide coverage of his product or service.

A franchisee supplies the product or service, which is curated by the franchisor sitting at the opposite side of the pole. Do you think that your product or service will be according to your society’s demands?

Will it respond to the atmosphere that you live in. Since you aren’t allowed to make any customizations to the policies, will a franchise model designed in Kanyakumari be suitable to be adopted in Kashmir?

There are even changes in the time from east to west. How can a product or service be the same and still have the same demand just because of the brand name?

Adhering to the changes in market, situations of every geographical area, need for investing differently, a preschool franchise business model leaves you with many difficulties to cope up with the surroundings especially when it’s a preschool.

Your preschool will succeed with the quality of your services and not because of your recognized brand name. That is a factor less crucial.

Costs associated with preschool franchise

A preschool franchise sets up a minimum investment requirement, which is not the case when you open a preschool all by yourself.

Everyone must be scared if they are asked to invest in 12 to 15 lacs as their initial investment and a franchise fee of 6 to 7 lacs. This doesn’t include royalty for now.

When a brand asks for this fee in return for good revenue in the future, one has to be scared. It can be possible, but what if your preschool fails as well.

It’s a lot of money to invest just for failure. Since there are different factors driving a return on investment, one can’t be sure to invest much money in a brand, when you know that the franchise fee is nothing but an investment the brand asks for in their name.

Quality of Services

While sitting in Kashmir and opening a preschool Kidgee whose product is set up according to its home location, Kanyakumari, how can you be sure that in spite of the geographical differences and difference in the needs of consumers, your quality will remain the same.

You are not allowed to make amends. You are just a supplier. A product has been made already. You just have to repackage it, promote it and try to increase its sales with your hard work and the preschool franchise will end up taking even your share of profit.

That’s the case with it. With a preschool franchise, you are not opening YOUR preschool, you are opening a SHOP to sell their preschool services. Understand the difference well.

How much are you getting back?

When it comes to revenue, most of it goes into the pockets of your favorite preschool brand you choose to work with.

Of course, every year parents get their children admitted into a preschool and the number grows. But, it’s not compulsory. What if you want to earn some extra revenue as well while you get no students enrolled in?

You will just have to sit year after year paying the brand royalty and rents and other expenses while the brand extracts you out of every penny you make and you go in losses.

Even when you decide to make additional revenue through opening a venture side by side and making an effective use of the preschool space, it lies against the policies and now you can’t.

This is what your favorite preschool chain will end up doing to you at last.

The suffering of franchisees

Franchisees end up falling into the beliefs of the franchisors and start believing that the name of a brand matters the most in a preschool’s success.

It underrated all other factors which are relevant such as curriculum, infrastructure, location of the preschool and efforts one put in for the brand.

The brand makes you believe that the name of the brand, marketing, interiors, etc are the most significant while seeking admissions. No they are not!

How the quality of your preschool services are irrespective of a brand name matters the most and has the highest significance in shaping your preschool’s success.

What are franchisors doing?

Presently, franchisors are not treating a franchisee as its investment. As said earlier, it’s a shop for them to sell their services. No adequate support is provided to cooperate with your environment and adjust the preschool’s model as per that.

You are a salesman with a target and you have to fulfill that by hook or crook. That’s what franchisors are doing to franchisees out there. You pay royalties out of every admission you get which anyhow ends up reducing a franchisee’s profit to a great extent.

There are brands seeking no royalties and ending up providing no support either. Some other brands end up giving a hole in your pocket and extracting lakhs of money for their brand’s interest.

  • You have to adjust to the locality needs.
  • You have to promote your services and ensure their quality.
  • You have to deal with the ongoing competition prevalent in society.
  • You have to undergo daily preschool operations.
  • And they (franchisors) end up taking out all the money from your pockets that you earn with this hard work.

Which is better? A preschool franchise or your own brand preschool?

Are you still confused?

If you do the same hard work for your own preschool brand and run your preschool successfully for 3 or 4 years, you’ll create a brand itself. You no longer have to pay heavy franchise or royalty costs everytime and rather invest that money in your preschool’s infrastructure.

You will have your own reputation in the society and you are the boss then! You can decide your policies for the preschool and act according to them. No longer do you have to be under the administration of a franchise.

There will be self satisfaction that what you are doing, you are doing it for your success rather than a brand’s.

Yet, opening a preschool completely on your own can be confusing and tough. That’s why we are here.

Teeny Beans is a zero royalty, no franchise cost preschool franchise that is only there for your help. We’ll support you in everything from making a preschool business plan to running your preschool smoothly. You open a preschool with your brand name and get guided by us to be on the right track.

We only want your success. Contact us for further queries.

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