Are Education Franchises Profitable?

With low overhead and initial investment fees, the typical education franchise is a profitable investment. 

The online tutoring market for K-12 students worldwide is expected to grow by 12.75% through 2021. Education franchises are often considered recession-proof, as parents will almost always invest in their children, especially through times of increased educational hardships like the pandemic. 

Thanks to this ever-increasing demand for education, franchises in the industry are plenty and profitable. Education franchises typically have low royalty fees and initial investment. Here are three major education franchises as an example: 

Mathnasium Learning Centers

> > Initial Investment: $112,750-$149,110

> > Royalty Fees: 2%

Kumon Method Learning

> > Initial Investment: $7,000-$14,000

> > Royalty Fees: 45%

Sylvan Learning* Center

> > Initial Investment: $70,980-$159,885

> > Royalty Fees: 16%

The majority of franchises will stipulate that the amount of revenue brought in depends on the hustle of the franchisee, the location of the franchise and many other factors. However, Sylvan Learning has published an annual gross revenue of $518,159 for the top 25% of its franchisees. Considering the maximum initial investment in a Sylvan Learning franchise is about $160,000, that revenue symbolizes a very healthy profit margin

Combine that profit margin with the reliability of the franchise business model, and that’s a recipe for success. In general, when compared to independent business models, franchises last a great deal longer. In one study, 85% of franchises were still in business after five years, whereas 25% of independent businesses fail after the first year, and 50% of those remaining businesses close within five years. 

When combining demand and its projected growth, along with the proven business model a franchise provides, an education franchise is a solid investment.

For math franchise, please CONTACT US at info@vffranchiseconsulting.com

Related News

1/ Why is MATHNASIUM successful?

2/ Best Education Franchises for Children

3/ How Education Brands Can Adapt To COVID Responses

4/ What’s The Secret To Mathnasium’s Success

5/ Teach Math In A Way That Makes Sense

6/ Mathnasium’s Proven Curriculum Through Results

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Frequently Asked Questions (FAQS) About Education Franchises

Education franchising is one of the most promising businesses in today’s economy, as people tend to nurture their talents to adapt to this changing world. Additionally, education franchises are also profitable due to its low overhead and initial investment fees. Over the years, the rapid development of technology and the COVID pandemic have changed the education industry. The current global education trend is to train and nurture students to adapt to a changing world. STEM education, programming education, comprehensive skills education, etc., therefore attract many investors.
This is an almost impossible question to answer.  Certain industries will definitely average better ROI than others.  It is also typically true that the more you have to invest the more profit you will make.  Education is consistently one of the top performing industries in Asia and without exaggeration a solid place to build for the future.  Asian cultures almost without exception have a huge focus on childhood education, and even as adults, I find most are lifelong learners, always looking to improve themselves.
With low overhead and initial investment fees, the typical education franchise is a profitable investment. The online tutoring market for K-12 students worldwide is expected to grow by 12.75% through 2021. Education franchises are often considered recession-proof, as parents will almost always invest in their children, especially through times of increased educational hardships like the pandemic. Thanks to this ever-increasing demand for education, franchises in the industry are plenty and profitable. Education franchises typically have low royalty fees and initial investment.
There are quite a number of steps to getting an education (or any) franchise.  After an initial discussion to make sure we match up the correct franchise for you and your market, we will collect a signed NDA (non-disclosure agreement) which will allow the brand to share more sensitive information with you.  Also, an application so they have a bit more information about your company and objectives.  Then a 3-way call with us, yourselves, and the franchisor development team.

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