Why open a Language Training Franchise?

Most likely you are reading this post as you have an interest in starting an English language business, thus we welcome you to our website. However, before we discuss the concept of an English language franchise specifically and some of the best practices in doing so, we would like to suggest a few core benefits of any franchise business in general.

If you are looking to expand your current business or you are ready for an exciting new investment opportunity, opening a franchise may be for you. A franchise offers both support and independence for new business owners. There is always ongoing guidance and support from the franchisor corporation, and this means that you will have a greater chances of success. The owner independently runs the franchise, but without the risks faced by a business started from scratch.

A few of the prime advantages of having a franchise are:

  1. You are able to leverage an already recognized brand name
  2. You follow an established system, thus less room for growing pains and mistakes
  3. You receive continuous support and guidance from the corporation
  4. Obtaining financing is often easier for a franchise as banks trust an established business model
  5. And last but certainly not least, you are your own boss

For those with limited experience in running a business, a franchise can offer the required experience and expertise to build and manage a successful business. After profitably running one franchise, owners often choose to open multiple franchises to expand their business and increase their income stream.

Finding the best location for a Franchise

One of the most important issue for a franchisee is choosing the best location for the business. The right location resolves many problems such as that of infrastructure, rent, cost of living, availability of human resource, traffic, weather conditions and so on.

Here are 4 key ways to find the best location for your franchise:

  1. Use Guidance from the Franchisor

A good franchisor will have a wealth of experience and recommendations that can assist you in finding the best locations in your local market.  They want you to succeed and they provide the assistance you need. Work closely with your franchisor, and share your thoughts about the strengths and weaknesses of the various locations in order to be effective and efficient.

  1. Research

Realistically, the franchisor you are considering doing business with is not physically located in the same city as you. As such, it is still very important that you gather local knowledge about the area. Consider rent, taxes, wages, infrastructure and availability of employees. Going both macro and micro in your research will help you understand the big picture. Collect enough data to make realistic predictions and this will help you have a better understanding and have foresight on your long term and short term goals.

  1. Check Your Financial Reality

Carefully plan your financing keeping in mind the obvious expenditures, unexpected expenditures, and risks. It is important to be financially realistic. If opening a franchise overseas, consider the currency difference, cost of living, cultural differences, travel requirements, etc. Many franchisors have the necessary documentation to help you consider various potential costs, thus enabling you to determine if your financial reality is in line with the finance needed for the business.

  1. List out Problems and Solutions

Choose the top locations for your business, and list out the possible problems that you may face in each area. You should also consider the difference in language and culture, hiring of employees, cost of living, safety issues, and environmental challenges. With these facts in mind, you can discuss these issues with your franchisor to see how you can overcome them and measure your success rate.

Finding and Hiring English Teachers

While the above points certainly will assist you in any franchise, they can easily assist you in preparing for ownership of an English language training franchise. One of the core concepts to remember when starting or owing an education business, is that your product is fundamentally your instructors and their knowledge, which you sell to your customers.

This fact makes it of extreme importance that you hire the right instructors with the right skill sets for your business, but finding these resources can be difficult. Franchisees can find English teachers online through job sites, advertisements in newspapers and magazines, and teacher supply agencies. When finding English teachers, it is vital to check the hiring season in the country where you are opening the English language training franchise.

The hiring season often occurs when many teachers complete their contracts and leave their current positions, creating job opportunities for other teachers. A franchisee can look to hire English teachers after the traditional hiring season ends, as many teachers who don’t find a job during the hiring season are available for employment. Here are some of examples[i]:

  • Europe – The language school hiring season for primary school teachers is September/October. The hiring season for secondary school teachers is January.
  • Central America – The language school season for primary school teachers is June/July, and for secondary school teachers is January/February.
  • South America – The season for primary school teachers is February/March, and for secondary school teachers it is July/August.
  • South Korea – Public schools typically recruit English teachers during the spring and early summer. Some public schools recruit in the fall.

As a franchise owner, it is vital to research the particular country in which you wish to hire English teachers. There are many aspects you will need to consider, as often, the trainers will be from overseas. The chart below shows statistics on hiring English teachers from a couple of countries in Asia, with a much broader list provided via the Source: International TEFL Academy[ii]:

Country Degree Requirement Typical Contract Length Peak Hiring Seasons Expected
Down Times
Interview Procedures Visa Info Typical
Students
Average Monthly
Cost of Living
in $ USD
& Local Currency
Average Monthly
Salary in $ USD
& Local Currency
Estimated Start-up
Costs *
Housing Reimbursed Airfare
China

 

BA/BS
preferred,
not required
6 & 12
months
All Year
Round
Lunar (Chinese
New Year)
2 weeks late Jan-early Feb
Phone/skype
in advance & face-to-face in China
Work visa in advance or Tourist visa convert to work visa Business Professionals, Children $600 – 800 USD
(3,706 –  4,941 RMB)
Plus housing
$950 – 1,900 USD
plus free housing.
(5,868 –
1,736 RMB) Can save
$400 – 1,000 USD/Mo
$ 700-900 USD Free Housing or
Housing
Subsidy
Yes

Japan

BA/BS
required
12
months
All Year
Round
None Interview in US, Canada, UK 3 -6 months in advance Work visa in advance Business Professionals, Children $1,800 – 2,800 USD
(185,193 – 288,078 JPY)
$2,500 –
2,800 USD
(257,212 – 288,078
JPY) Can save $600 – 800 USD/Mo
$2,600 – 4,200 USD (267,501 – 432,117 JPY) Self-pay,
Housing advice
provided by employer
No
South Korea

 

 

BA/BS
required

12
months
All Year
Round
None Phone/skype in advance Work visa in advance Business Professionals, Children $700 – 1,000 USD
(721,896 -1,031,280
KRW)
Plus housing
$1,700 – 2,000 USD
(1,753,156 – 2,062,560
KRW)
Plus free Housing
Can save
$1,000 USD/Mo
$700 – 1,000 USD (721,896 -1,031,280
KRW)
Free Housing or
Housing
Subsidy
Some round trip, most one way
Thailand

 

BA/BS
required
6 &12
months
May and November None Most face-to-face in Thailand; Some phone/skype in advance Work visa in advance or in country Business Professionals, Children $500 – 750 USD
(16,097 –  24,146 THB)
$750 –  1,000 USD
(24,146 – 32,195  THB)
Can save
$150 – 250 USD/Mo
$750 – 1,100 USD (24,146 – 35,414 THB) Self-pay,
Housing advice
provided by employer
No

Once you are aware of the costs, it is also wise to review global online job sites that bring employers and employees together at one place, making it easier for job seekers to connect with local employers, and vice versa. Alternatively, placing advertisement in national newspapers or magazines can help to gain access to a large number of job seekers who are local.

You may also use the services of a teacher supply agency can also help an English language training franchise owner to hire qualified English teachers. These agencies provide access to the teacher‘s records and can help to match the right candidate with the right job profile.

Once you have your location ready and your teachers hired, your business is ready to commence. It will take hard work both before and after your doors open, yet a franchise can quickly become a flourishing business with the resources made available by the franchisor, and the support it provides in time of need. To own a business without struggling at every turn, choosing a franchise is a better choice.

You can tap this booming market with the New Horizons English language franchise opportunity, so don’t hesitate to contact us or review our website to download our franchise prospectus.

Sources:

[i] https://www.internationalteflacademy.com/faq/bid/105248/What-are-hiring-seasons-for-teaching-English-abroad

[ii] https://www.internationalteflacademy.com/country-chart-world-index-english-teaching-jobs