Preschool franchise cost and return on investment ( ROI)

If you are planning to opt for  preschool franchise opportunities for well known brands, the two things that come to your mind are the capital that you need to invest and the return on investment (ROI) that you are expecting from this project. You need to research the terms and conditions for various preschool brands and also understand the way they execute the establishment of the preschool. Most of them find a lucrative business in opening a preschool in India and franchise is considered a good option in spite of the odds.
Various brands expect varied investment for starting their branch. This can roughly range from Rs. 2 lac to Rs 20 lac and this includes the franchise fee. In some cases the higher amounts include the cost of infrastructure, but in most of the cases they do not. You need to understand the breakup of this amount. Along with the finance, you also need to provide a dedicated area for the preschool. This also can range between 600 – 2000 square feet depending on the business plan.

 

Other costs that need to be considered for a franchise opportunity include developing infrastructure and interiors as per the requirements of the brand, marketing and advertising costs, staff recruitment and training prior to the commencement of the school and so on. Most of the preschool franchises in India provide assistance in setting up all this.

 

Coming to the ROI, most franchisors provide a rough estimate of the break even period and the percentage of ROI that includes profits in preschool franchising. It can go high up to 50% too. However, this depends on a lot of factors. The prominence of the brand, your location, response to the preschool and the performance of the staff members are some of the crucial factors. You need to work on the estimation of the investment versus expected ROI with the franchisor.

 

We deal in preschool franchise business opportunities in India and help the preschool brands to offer opportunities for preschools franchise.