Why is Mexico City a great city for an Education Franchise?

Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Mexico City, Mexico is a great city with ample potential for an education business and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.

As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.

The capital of Mexico has all the elements to make it a worthwhile destination for an English language franchise. It has a large population with growing demand for English learning and an urban economy with modern infrastructure. Here are facts that explain why it is a favorable location for your education franchise.

  1. With around 20% of the population accessing English tutoring through public or private means, Mexico has a substantial market for English learning.[iii]
  2. Mexico City is the fifth largest city in the world by population, providing a massive market you can tap into.
  3. The city became the eighth largest urban economy in the world with a GDP of $411.4 billion in 2012.[vii] It is also the richest city in Latin America.[vi]
  4. In Mexico, English is a skill in great demand with 69% of employers believing it to be an essential skill for an employee.[iii]

Here are further reasons why Mexico City is a top location for an education franchise.

Education and English Learning

In Mexico, it is common for children to work and study, mostly to support their families. That is a reason for the high dropout rate in public schools. Yet, Mexico’s education system has seen a sharp rise in student enrollment in recent decades. The total student enrollment in primary school through graduate courses rose more than eightfold – from 3.25 million students (1950) to 28.22 million students (2000).[ii]

It has further risen to 36.3 million (2015-2016) across all education levels, the recent government data states.[ii] There is also seen a sharp hike in enrollment of students of university going age from a mere 15% in 1991 to a healthy 31.2% in 2016.[ii] This is good news for anyone looking to open an education franchise, as more and more students see the benefits of furthering their studies. Students and their parents will not hesitate to spend on private courses to improve themselves.

The importance of education in the younger generation is on the rise. Per a research[iii] conducted by the British Council (2015), younger Mexicans are achieving much higher levels of education than their predecessors ever did. A substantial 44% of 25-34 year olds have at least an upper secondary education.[iii]

A similar story runs regarding English learning. Per the British Council, “Mexico has a substantial English learning market with around 20% of the population accessing English tutoring via public or private means.”[iii] The demand for English proficiency in business communications in Mexico is one major reason for this rise in demand in English learning.

People learn English to improve their employment prospects (26%), quality of life (16%) and to travel abroad (16%).[iii] This provides a very good market for a New Horizons English language franchise.

GDP & Population

Mexico City is the fifth largest city in the world by population, density and land area.[iv] In fact, it is the most densely populated metropolitan area in the Western Hemisphere. The capital city is expected to further grow in population to reach 22 million by 2020.[v] This is superb news for anyone considering an education franchise. This cosmopolitan city is home to many immigrants, largely from the U.S., as well as South and Central America. Immigrants from Canada, the Caribbean, Europe, and the Middle East have also made Mexico City their home.

Mexico is the second largest economy in Latin America, and Mexico City the richest city in Latin America.[vi] The city became the eighth largest urban economy in the world with a GDP of $411.4 billion in 2012.[vii] By 2020, it is expected to be the seventh richest city in the world by GDP.[viii] Majorly dependent on international trade, approximately 31% of Mexico’s total GDP of $370 billion comes from exports.[vii]

Tourism is also a major contributor to the GDP and an employment generator. People in this line of work must study English to get ahead and make themselves stand out in the work force. Mexico City received $13.5 billion in foreign direct investment in 2010, revealing its importance to international businesses.[vii] The capital city of Mexico is steadily rising to become a major economic power of tomorrow. Starting an English language franchise will prove to be a logical decision.

Infrastructure and Facilities

Mexico City carries the history of Mexico in its temples, cathedrals, and museums. The city is a fascinating mix of ancient and modern, especially downtown Mexico City, which is an urban area with many historical constructions. Home of renowned artists such as Rivera Diego and Frida Kahlo, it is no surprise that the city has the largest number of museums (over 160) in the world. As for entertainment, there are amusement parks, car races, clubs and pubs, theatres, and, of course, football (soccer). You can get around the city by the metro, bus, metrobus, trolley bus, or private transportation.

Along with successfully battling safety issues, Mexico City is further improving its infrastructure. In 2013, the Mexican President said that public and private investments in transportation and communications infrastructure would be approximately $100 billion between 2013 and 2018.[ix] This means new highways, rail lines and telecommunications along with port upgrades. This means that there will be more resources and better infrastructure soon, making it convenient to open an education franchise.

Business Incentives by Government

In Mexico, corporate taxes are charged by the federal government, which stand at par with many other countries at 30%.[x] However, companies pay no local or state income taxes on their corporate earnings.[xi] Mexico has free-trade agreements with many countries, including Colombia, Costa Rica, Nicaragua, Chile, the EU, Israel, El Salvador, Guatemala, Honduras, Iceland, Norway, Liechtenstein, Switzerland, Uruguay, and Japan for both manufacturers and non-manufacturers.[xi]

Among the federal tax employment incentives, companies can enjoy a credit equivalent of 100% of the income tax on the salary paid to disabled employees, and 25% deduction on salary paid to those over 65 years of age. Various state and local incentives such as grants, reduction in payroll taxes and property taxes may also be applicable.

As we have seen, a variety of reasons contribute to make Mexico City one of the top destinations for an English language franchise. Probability of further increase in market size, proximity to the U.S., and a stable economy are just some of the factors that make it a valuable location. If you are looking for an appropriate city for your education franchise, Mexico City is worth a thought.

New Horizons English Overview

We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.

The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).

New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.

The New Horizons English teaching method enables students by giving them three key learning advantages:

  1. Learn at your own pace
  2. Learn anywhere, anytime with Online Live®
  3. Learn with your own teacher with Mentored Learning®

All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.

How does it work?

The New Horizons English Method uses the natural method of second language acquisition which focuses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.

The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.

Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.

We genuinely believe now is the right time for a new and modern approach to an English language franchise in Mexico City, Mexico. We are very interested to discuss in detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.

Sources

[i] https://www.classbase.com/countries/Mexico/Education-System

[ii] https://wenr.wes.org/2016/08/education-in-mexico

[iii] https://ei.britishcouncil.org/sites/default/files/latin-america-research/English%20in%20Mexico.pdf

[iv] https://www.citymayors.com/statistics/largest-cities-population-125.html

[v] https://worldpopulationreview.com/world-cities/mexico-city-population/

[vi] https://discoveringice.com/travels/north-america-mexico/41-fun-and-interesting-facts-about-mexico-city.html

[vii] https://c24215cec6c97b637db6-9c0895f07c3474f6636f95b6bf3db172.ssl.cf1.rackcdn.com/framed/~/media/multimedia/interactives/2013/tentraits/mexico_city.pdf

[viii] https://www.citymayors.com/statistics/richest-cities-2020.html

[ix] https://www.reuters.com/article/us-mexico-infrastructure-idUSBRE96E0SA20130715

[x] https://www.pwc.com/mx/es/publicaciones/archivo/2014-10-mexico-investment.pdf

[xi] https://www.tecma.com/investment-incentives-in-mexico/