All you need to know before owning an 7 common questions about owning an education franchise businesseducation franchise.

Successful education franchise owners, before beginning their business, thoroughly review, research and study the implications of owning and running it fully. Owning a business is not only an important decision, but also a long-term activity that impacts your life. To help you to make the right decision, here are seven most common questions about starting an education franchise.

Q1. How Much Help Can I Expect from the Education Franchisor?

A franchisor provides a business model, initial training, and relevant information and guidance to the franchisee. However, the franchisee is expected to take care of day-to-day management of the business. Usually, franchisees are required to conduct marketing, train their staff, manage operations, ensure tax compliance, and run the business independently.

The franchisor provides the initial training to the owner of the franchisee about procedures, rules, and processes, but after the establishment of the business it becomes the responsibility of the owner to manage the business. Owning a franchise is being self-employed, except that you have the umbrella support of the franchisor to shield you from certain risks. New Horizons has an established business model which has helped franchisees increase margins, economies of scale, and lower total cost of operations globally. The company also has world class marketing materials, proven sales methods and excellent content that give franchisees the support they need.

Q2. What is the Process of Buying an Education Franchise?

Each franchisor has a different deal on offer. To find a deal that can turn into a successful franchise, you may first want to conduct some research about the franchise opportunities in cities/countries in which you are interested.

After you contact the education franchisor, you may be required to sign a confidentiality agreement before undergoing the Due Diligence (DD). As its name suggests, Due Diligence is an investigation or analysis of a person or a business conducted before a potential investment and the signing of a contract. A DD helps the franchisor and the franchisee to ensure that the contact will be fruitful for both parties. A franchisee must take the DD very seriously, as it can determine if they are the right fit for the franchisor, and vice versa.

After Due Diligence, you may be able to negotiate changes to the agreement, yet franchise agreements are commonly consistent across all partners. One franchise, one agreement, one franchisor, many franchisees. After the agreement is finalized, you sign it and pay the deposit amount.

Q3. What are the Royalty Fees to be paid by the Franchisee to the Franchisor?

Usually, the royalty fees is about 5 to 8 percent of the total gross sales of the franchisee. Royalty is generally paid every month. Some franchisors charge up to, or even over, 10% in royalty.

Royalties help franchisors to expand and promote their business. This indirectly promotes the franchisees as well. Depending upon the type of business, the popularity of the brand, and the expected profits, the royalty fees may alter.

Usually a portion of the fees are allocated to the national or global marketing budget, so the fees may also help you in gaining better brand awareness and local market share.

The fees can also be used to update products and/or systems, so you should understand why the fees are required and how the franchisor allocates these revenues.

Q4. Can I Succeed in Running an Education Franchise?

It is natural to feel anxious when you prepare to buy a franchise. However, by analyzing your long-term goals, capabilities, and expectations, you can be better prepared to run a business. You need to ask yourselves certain questions to know if you can succeed in running a franchise. These include:

  1. Can I run a business independently?
  2. Can I recruit and manage employees effectively?
  3. Can I work within an established system?
  4. Am I flexible enough to take instructions while also working independently?
  5. Do I have basic business skills?

Q5. What are the Pros and Cons of Owning an Education Franchise?

Those who want to do business often choose to own a franchise because of the support and security provided by the franchisor. However, like in every business, there are limitations that need to be tackled. The advantages and limitations of owning a franchise include:


  1. Availability of brand image, business model, and training and development
  2. Sharing of growth with other franchisees and the franchisor
  3. Ready assistance available from the franchisor in times of need
  4. Opportunity for quick growth and expansion
  5. Being your own boss


  1. Necessity to work within an established system
  2. Independent management of human resources and capital
  3. Dependence upon the franchisor for brand promotion, reputation management, etc.
  4. Sharing of revenue with the franchisor

Q6. How Do I Make Sure the Education Franchisor Can be Trusted?

It is important for an owner of a franchisee to trust its franchisor. After all, you plan to do business with them for years to come. To correctly judge whether a franchisor can be trusted, gather information on the following:

  • Is the franchisor free from litigation? Has there been past history of litigation? If yes, has there been numerous cases or only a few over the years? And, has the verdict been in which direction most often?
  • For how long has the franchisor been in this business?
  • Was the agreement offered to you legitimate and fair?
  • Does the franchisor comply with the Franchising Code of Conduct?

Help from a solicitor or lawyer may be required to fully understand the franchise agreement and how it will impact you. On this note, New Horizons has been around for more than 30 years and has an international presence in over 70 countries. With over 300 locations and about 5000 employees worldwide, the company is here to stay. The New Horizons education franchise also boasts reputable systems and over 2000 Language, Management, and I.T. courses. The company is trusted and has helped over 30 million people become more valuable via training worldwide. The sheer amount of numbers mean that the company is stable and here to stay, wherever you are.

Q7. Is This the Right Kind of Education Business for Me?

For most people, owning a business independently is a risky proposition. An education franchise, on the other hand, is seen as a safer alternative. If you want to be working for yourself without facing the risks that come with running a conventional business, owning a franchise is a better option.

Before you decide to own a franchise, consider your objectives, resources, and circumstances. Take sufficient time to research, understand and review the implications of running a business or running a franchise. The business that provides you with more advantages will be the right one for you.

At New Horizons, the road to success is already paved. With a proven system, sales method and strong content for worldwide marketing, there has never been a better time to open an education franchise. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.