Whoever said education is just about intellectual and knowledge gains did not see till 2013. The widespread rise of franchise-based educational networks in Pakistan shows that there is a financial return to education as well, with many schools systems having launched their franchise networks, making a success story out of themselves.
The Educators school system is the pioneer of franchise-based education in Pakistan, and has been followed by many such as Allied Schools, LEADS schools and colleges, Spirit School System, and now the City Schools Smart Schools network, which is being marketed widely all across the nation, through TV, newspapers and outdoor advertising.
The management of the Smart School system envisions establishing a school in every city and ehsil of the country, without any exceptions, extending to areas such as Mardan, Malakand, and even districts in Quetta. The only criterion is for franchises to be established apart in a radius of 3-4 kilometres. Interestingly, the response has been quite positive even from areas such as the above-mentioned where one would generally not expect education to receive much importance.
What sets this school system apart is the use of information and communication technology in its learning methodology, with a web-based portal providing a common infrastructure to manage a centralised curriculum and teaching methodology across all schools. It also offers the Smart Board technology, which is a method of learning, simulating the concept of touch screens as seen on mobile phones and tablets.
"Even in areas where information technology is not as common as in some metropolis, the Smart School management provides ICT labs with complete infrastructure, and staff trained at the head office to run those labs," said Kashif Rauf, Senior Officer, Sales and Relations at the Smart School System.
The Smart School system will provide the basic backbone, including curriculum, a standardized structure of education, and continuous professional development for teachers. The franchisee will be responsible for the infrastructure, maintenance, administrative control, staff hiring, etc for the school.
Two levels of franchises are offered at the primary and comprehensive school levels, at a licensing fee of Rs700,000 and Rs1,100,000, respectively for a period of 10 years. Franchisees will also have to pay a royalty of nine percent on gross revenues on a per month, per student basis.
"As an example, the fee structure in Lahore is Rs2,000 per month for a student, Rs2,200 in Karachi and Rs1,800 in Islamabad and Multan. The net investment, including staff salaries, furniture and equipment, textbooks, renovation or construction of the building, rent and licensing fee, comes to about Rs5 million for a primary level franchise," explained Rauf.
Though the break-even levels depend on the area and the response from there, it is estimated that an investor should be able to break even once 175 students have been enrolled. In some cases, this may take as less a few months, though the average duration is estimated at about two years.
Parents in Pakistan are very keen to educate and send their children to school, no matter which economic class they belong to. In fact, education is perceived as the best entry point into a higher socio-economic class, and therefore, investors in a franchise-based school system can be assured of a steady demand. All in all, a great investment opportunity? Check.
=======================================================================================================
Schools Specifications & Criteria
=======================================================================================================
PRIMARY SCHOOL
=======================================================================================================
Building Parameters Network Association
=======================================================================================================
Classes Students Per School Minimum Plot Area In Association Association Royalty on
Class Strength Kanal/sq.yd/sg.ft Fee Period Gross
=======================================================================================================
8 25-35 275 approx 2kanals=1000sq.yd= 9000 sq.ft 700,000 PKR 10 Years* 9%
=======================================================================================================
COMPREHENSIVE SCHOOL
=======================================================================================================
Building Parameters Network Association
=======================================================================================================
Classes Students Per School Minimum Plot Area In Association Association Royalty on
Class Strength Kanal/sq.yd/sg.ft Fee Period Gross
=======================================================================================================
13 25-35 500 approx 3kanals=1500sq.yd=13500sq.ft 1100,000 PKR 10 Years* 9%
=======================================================================================================
Source: Smart School System website
Comments
Comments are closed.