Education Franchise UK – the TOP 10 MUST KNOWS about finding and running successful UK Education Franchises.
If you’ve got the right skill set, buying and running an education franchise UK could be a fruitful investment – both financially and personally.
Education is among the most important pillars of a society. A society’s worth is determined just as emphatically by how educated its members are, as it is by its economic power. In fact, without strengthening the education sector, there’s no hope for a society progress – especially in this day and age. Much the reason why, UNESCO has long deemed education to be a basic human right.
Thankfully, Britain has always been a global leader when it comes to providing quality education to its residents. Despite this, there remains a significant room for improvement – a space that schools and colleges just can’t fill. This is where private ventures in the education sector come to the fore.
By offering highly specific tutoring services (among others), these businesses not only have carved a niche for themselves, but they also have managed to address some of the grassroot-reach issues of our education system – a certain win-win, if there was one.
Buying and running an education franchise UK will help you enter and operate in an industry that has a lot to offer in terms of financial returns, job satisfaction and enjoyment. Things, however, are never straightforward, especially when you’re franchising for the first time. In this article, we’ll discuss what education franchises UK are, how much it costs to buy one, when you can expect to break even and what skills you need to possess in order to succeed.
Before You Buy An Education Franchise UK – Some Important Stats
The UK education industry, from one end to another, has excelled in terms of quality, vision and reach. Before you decide to invest your money in an education franchise UK, it’s important to have some understanding of the industry.
Since UK education franchises operate chiefly in the private tutor sector of the education industry, we will keep the discussion limited to cover for that aspect.
- The private tutoring industry is much larger than most people imagine it to be. At over £6 bn, the annual turnovers of this segment have comfortably overtaken many standalone industries in the last few years.
- The demand forces for private tutors are larger today than ever. Nearly 27% of school-going children are estimated to hire the services of private tutors for at least one subject (2018). For reference, this percentage was only 18% in 2005.
- This percentage rises dramatically in urban and metropolitan areas. In London, for example, the same percentage is reported to be as high as 44% (2016).
- Private tutoring businesses have consistently posted high YoY growth in the last ten years. Some start-ups have gone on to register 500% growth points in a single year.
- Private tutoring usually yields decent hourly rates for tutors. Language classes, for example, are estimated to earn the tutor an average of £20-25 per hour. Sports tutors, at the same time, earn significantly higher – £35-40 per hour, on average.
- The distribution of subjects in terms of demand makes for a curious case when we discuss the economic feasibility of education franchises UK. Maths, English and Sciences is the ongoing order of preference for most children. 77% of these children are estimated to receive private tuitions in maths. Nearly 30% of kids receive private tuitions during the holiday period.
- In continuation of the last point, it’s important to note that the summer months account for a great deal of activity on the private tutors’ circuit in the UK. A combination of factors – GCSE and A-level preparations and year-end entrance exams, to name a few – mean that parents are eager to hire private tutors during these months for their children.
Sources: TutorHunt, The Tutor Website, Superprof, The Guardian, The Independent
The bottom line is, buying an education franchise UK lets you enter an industry segment that is profitable and enjoyable. The upward moving trajectory of the segment holds enormous promise over the next 10 years for education franchises UK. You can also expect to achieve a decent resale value when you decide to sell your franchise.
Why Are UK Education Franchises Needed?
Many critics bemoan the very need of having private tutors teach children – some even see these needs as a certain failure of the education infrastructure at large.
Despite these contrarian views, it should be safe and fair to say that every education franchise UK carries a great deal of importance in the larger scheme of things. Many parents and children can vouch for the fact private tuitions – when done right – can be immensely helpful.
UK education franchises, in most cases, offer an assortment of specialty tuitions that are aimed at smaller, more definable demographics. This micro-targetting ensures that such franchises can offer better quality services, justifying the need for their existence.
Recommended: Here’s What You Need To Know Before Investing In Children’s Franchises UK
How Much Does An Education Franchise UK Cost?
Education franchises UK are through and through service provider businesses.
This, however, doesn’t mean that these franchise businesses work like other service sector businesses. The main reason for this is the way education franchises are run. We will get to that point in the next part of this post.
“Franchisees should note that a typical education franchise UK – operated locally, with an exclusive territory and a proven business model – will cost you anywhere between £8,000 and £20,000.”
The good news is, education franchises UK cost much less than some of the other franchise opportunities out there. This also means that scalability and marketing bottlenecks prevent such businesses from taking off locally. Even when you earn profits, they will always be limited and predictable.
If you’re looking for a franchise opportunity that’s rewarding, enjoyable, affordable and returns decent profits, education franchises deserve a place on your shortlist.
To better understand and compare franchise opportunities, please download the franchise4u free franchising checklist.
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Do You Need To Be A Qualified Teacher To Run An Education Franchise UK?
The short answer is – no, not necessarily.
We do come across this question very often, and we try to answer it just as matter-of-factly in our franchising blogs.
This is one of the most prominent benefits of franchising – you don’t always need to have relevant industry experience to buy or run your franchise. This holds true for UK education franchises, as well.
To understand why, it’s necessary to understand how an education franchise UK functions.
Here’s the blueprint followed by almost all franchisors:
- The franchisor develops a successful business model.
- Franchisees buy franchise units.
- Each franchisee is assigned a dedicated and exclusive territory to operate in.
- The franchisee hires qualified tutors (usually in consultation with the franchisor).
- The franchisee oversees the local operations, including marketing, coordination, administration and finances.
- The franchisor is paid royalties/commission as specified in the franchise agreement.
Essentially, your role as a franchisee will largely be limited to ‘running’ the business. Quite naturally, the eventual profitability hinges on you being able to hire competent tutors – a bottleneck that we referred to earlier. This process can be quite tricky, especially since you’ll need to be extremely meticulous in running background checks and vetting applicants.
Are Niche Markets The Way To Go For UK Education Franchises?
Going after niche markets is usually a good idea for service providers because if there’s enough demand, one can quickly establish authority and build the business up on that foundation.
The same principle can be applied to education franchises.
You’ll never see a franchise opportunity that targets a large, non-specific market in this segment. A business that is able to cater to such widespread demands is usually also able to expand organically. In short, businesses that cater to a niche market are in the best position to franchise – the reason why going niche is the way going forward.
You’ll often see examples of this all around you. From programming tutors for children to guitar tutors for all age groups – niche businesses have already left a mark on the private tutoring sector in the UK.
Top Education Franchises UK
If you’re looking to invest in an education franchise UK, our shortlist of some of the most popular options will give you a fair idea of what to expect from the franchisor in terms of training, marketing, territorial rights, support and more.
- Minimum Initial Investment: £10,000 (plus VAT)
- USP: Interactive science education for children (aged 5-12)
- Get started right away, with affordable initial investment
- Low overheads, low operational costs
- Home-based franchise opportunity
- Ideal for qualified teachers
- A range of products, programmes and classes
- High profit margins, fast returns
- Provisional BFA Member
- Minimum Initial Investment: £10,000+ (plus VAT)
- USP: Early years French classes
- Affordable franchise fees, low overheads
- No French language proficiency required
- Employ and operate a team of French language tutors in your area
- High margins
- Reputed brand name
- Minimum Initial Investment: £12,000 (plus VAT)
- USP: Maths and English tuitions for children
- Popular, renowned brand name
- Flexibility, can be run from a home-office
- Full training and support
- No prior experience required
- Marketing support
- Can be run part-time depending on your other commitments
- Minimum Initial Investment: £15,000 (plus VAT)
- USP: Leading piano instructor and classes
- In business for 2 decades
- Full training provided for your tutors
- Bespoke piano teaching programmes and books
- Opportunity to boost your income with piano sales commissions
- Minimum Initial Investment: £9,000 (plus VAT)
- USP: Fun-filled performing arts, theatre and dance classes for kids
- Highly rewarding business experience
- Unique, proven business model
- Can be run part-time
- 100% ongoing business support
- Associate BFA Member
- Minimum Initial Investment: £19,500 (plus VAT)
- USP: Build your own coaching business
- Proven business model
- Fully-optimised launch programme
- Full training provided
- Exclusive territories allocated to franchisees
- Fully functional website and lead generation mechanism
- Marketing and social media support
UK Education Franchises – The Takeaways
- Focus on niche markets. If you can’t afford to run the business full-time, choose a flexible education franchise UK opportunity that gives you more balance.
- While you don’t need experience to run an education franchise, it’s always beneficial to have an innate understanding of how you can provide the best services to your customers.
- Franchise market research, as is always the case, is extremely important before you invest.
- Most education franchises can be run from home. So, make sure you are doing your best to minimise other overheads.
- Hire your employees with extreme caution and care.
Related: Education Franchises – Search Franchise Reviews Directory
Do you run an education franchise UK? We would love to hear from you.
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