Owning a franchise is a simpler way to start a new business. A proven business model, ongoing guidance and support from the franchisor, and a reputable brand name are the primary benefits of owning a franchise. To further smoothen your business journey, here are three key things to keep in mind before investing in an English language learning franchise.

1. Initial Investment for Franchise Fee & Accommodation

You need to make an initial investment to enter into the franchise system of a franchisor. It can be a single fee called the ‘franchise fee’ or can be more than one fee (initial franchise fee, initial investment, etc.) that you need to pay to the franchisor upfront.

The initial investment can be as low as $10,000 – $15,000 or reach as high as the sky. It largely depends on how well-known the franchisor brand name is and what services are being offered to you in return. For example, the initial investment for Alexander Language Schools Franchise is $50,000 – $250,000, and their initial franchise fee is $30,000 – $60,000.[i] Depending upon the franchisor, you may be charged more than one lump sum initial fee as investment. Therefore, it is wise to ask the franchisor about all and any initial fee that you are required to pay.

A franchisee is also required to pay royalty fee to the franchisor, typically every month. The royalty fee can be anywhere between 5 to 8 percent of the total gross sales of the franchisee in a month. However, some franchisors charge up to 15 percent royalty. Typically, royalty is charged on the percentage of total sales in a month, but some franchisors may have a different system of calculating royalty. Therefore, remember to get that clarified before deciding upon a franchisor.

Another crucial factor to consider when investing in a franchise is location. Franchisors often offer different deals to franchisees based on location. Therefore, determine in which city and area you want your franchise business to be. Depending upon the area you choose, you can hold talks with the franchisor regarding the total investment required. Also consider whether purchasing or renting space is a better option for you.

2. Hiring Key Staff

Quality staff, especially in key positions is a vital consideration for any franchisee. Competent teachers, management and marketing staff contribute in creating a professional environment where students can hope to achieve quality learning. Conducting a quick research about the availability of key staff, including teachers, managers and marketing professionals in the location of your choice will help you to understand how easily you can hire and refill key staff positions.

As for finding English teachers, you may check the hiring season of schools in your location to find skilled English teachers. In Europe, September/October is the hiring season for primary teachers, and January for secondary school teachers. In Central America, February/March is the hiring season for primary school teachers, and July/August for secondary school teachers. As you can see from the table below[ii], in Asia, the hiring season is usually all year round.

 

Country

 

Peak Hiring Seasons

 

Average Monthly
Salary

 

 

China

 

All Year
Round
 

$950 – 1,900 USD
plus free housing.


Hong Kong 
All Year
Round
$2,300 – 3,000 USD

Indonesia 
All Year
Round
$800 – 1,200 USD

Japan 
 

All Year
Round

 

$2,500 – 2,800 USD


Singapore 
 

All Year
Round

 

$2,400 – 3,000 USD

 

South Korea

 

 

All Year
Round

 

$1,700 – 2,000 USD
Plus free housing

 

 

Thailand

 

 

May and November

 

$750 – 1,000 USD

 

Vietnam

 

 

All Year
Round

 

$1,200 – 1,800
USD

 

Source: International TEFL Academy.

3. Various Marketing Required for Launch

After much preparation, you finally own an English learning franchise. The immediate next step is how to tell people about the business. Before the big launch, some of the ways through which you can truly make your launch a success include:

  • Social Media – Make your presence felt on social media through updates and advertisements.
  • Website – Having a company website is a must for publicity and connecting with students and teachers.
  • Direct Mail – If you have a database of potential customers’ email addresses, you can impact more people in less time.
  • Flyers – Distributing flyers at educational institutes, libraries, etc. can be a good way to publicize your launch.
  • Billboards, Television, Radio & Newspaper – If you have the budget for it, these traditional marketing methods work wonders in gaining visibility.
  • Press Release – Use targeted online and offline platforms to let people know about your franchise launch.

Investing your time, energy and money in these three key factors drastically improves your chances of having an early success with your English language franchise business. Collect as much information as possible, chart out a plan and see your English learning franchise grow to great heights.

 

Sources

[i] http://thefranchisemall.com/franchises/details/11748-0-alexander_language_schools.htm

[ii] https://www.internationalteflacademy.com/