{"id":529,"date":"2016-09-28T16:58:10","date_gmt":"2016-09-28T11:28:10","guid":{"rendered":"https:\/\/blog.footprintseducation.in\/?p=529"},"modified":"2024-01-16T15:06:06","modified_gmt":"2024-01-16T09:36:06","slug":"how-to-do-due-diligence-before-selecting-pre-school-franchisor","status":"publish","type":"post","link":"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/","title":{"rendered":"How To Do Due Diligence Before Selecting A Franchisor"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"578\" src=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1024x578.jpg\" alt=\"Pre school franchisor\" class=\"wp-image-3850\" srcset=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1024x578.jpg 1024w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-300x169.jpg 300w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-768x434.jpg 768w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE.jpg 1204w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>It is absolutely imperative for a prospective franchisee to thoroughly evaluate any claims made by a Pre school franchisor before entering into a franchisee relationship. An exhaustive due diligence will involve examining both the quantitative as well as qualitative aspects of the prospective relationship. In fact, a 360-degree audit based on information available from a) the franchisor b) other franchisees, and c) third-party resources can go a long way in risk management. Here is a handy guide that lists the various aspects you should examine before entering into a preschool franchisee relationship<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#Financial_Aspects\" title=\"Financial Aspects\">Financial Aspects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#Brand_Equity\" title=\"Brand Equity&nbsp;\">Brand Equity&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#Sales_and_Marketing_Support\" title=\"Sales and Marketing Support\">Sales and Marketing Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#Support_infrastructure\" title=\"Support infrastructure&nbsp;\">Support infrastructure&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#Recruitment_Training_support\" title=\"Recruitment &amp; Training support&nbsp;\">Recruitment &amp; Training support&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_Aspects\"><\/span><u><span style=\"text-decoration: underline;\">Financial Aspects<\/span><\/u><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For any business, a detailed understanding of its financial viability is foremost. While a pre school franchisor may make a number of claims on the financial sustainability of the business, here are some aspects you should examine closely:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Start-up costs<\/strong>&#8211; Ensure that there are no hidden elements when it comes to start-up costs. Ever so often, the franchisor may not include costs like rentals, deposits, flooring costs, etc in a bid to minimize the investment on paper. Post entering into the franchisee arrangement, these hidden costs can go a long way in impacting first your cost budget and later, your bottom lines.<\/li><li><strong>Running Losses-<\/strong> While the first year typically means incurring running losses, often these are not budgeted in the P&amp;L and come as the shock to the franchisee. Ensure the first-year losses are factored into the costs so that you have a realistic idea of the break-even period.<\/li><li><strong>Admission Guarantee-<\/strong> Remember to check whether the admissions are just hypothetical numbers on the P&amp;L or whether the franchisor is giving a written guarantee. A franchisor brand that has a proven track record and is sure of its offerings, will never hesitate in offering a written guarantee of the number of admissions it will be able to drive.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brand_Equity\"><\/span>Brand Equity&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An aspect, as important as ascertaining the financials is ascertaining the brand equity of the pre school franchisor. Strong equity will go a long way in areas such as impacting the number of admissions as well as helping you charge a premium in the fee, both of which, in turn, will positively impact the financials. Clearly, the way to go in the <a href=\"https:\/\/www.footprintseducation.in\/\">pre school business<\/a> is to deliver value and to be able to charge a premium for it. For pre schools who tend to indulge in attracting customers on account of low fees, sustainability becomes a big issue. It is therefore important to judge whether the brand equity of the franchisor allows you to operate in the quadrant of a high value-high fee.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"577\" src=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1-1024x577.jpg\" alt=\"Pre school chain\" class=\"wp-image-3946\" srcset=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1-1024x577.jpg 1024w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1-300x169.jpg 300w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1-768x433.jpg 768w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE-1.jpg 1203w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_and_Marketing_Support\"><\/span>Sales and Marketing Support<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the biggest advantages of becoming a part of a large pre school chain is the sales and marketing support that helps in first generating leads and thereafter helping in conversions. As a stand-alone school, you may not be able to compete with the advertising budgets that larger players have. Remember, however, to go over the sales and marketing plan in detail with the franchisor to ensure that you stand to gain substantially on this account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Support_infrastructure\"><\/span>Support infrastructure&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Running a pre school amounts to undertaking a host of administrative processes. Ensure that the franchisor hand holds you and offers you automated systems that add to your operational efficiencies. Some of the robust systems that you need to look for include automated HR, IT, and accounts processes.&nbsp; They also need to be able to provide you with robust data by way of parameters such as conversion rates, child attrition, and more which give you an overview of the business and allow you to focus on critical areas.<\/p>\n\n\n\n<ul class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"577\" src=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE_12-1-1024x577.jpg\" alt=\"Due Diligence Before Selecting A Franchisor\" data-id=\"3948\" data-link=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/how-to-do-due_12-1\/\" class=\"wp-image-3948\" srcset=\"https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE_12-1-1024x577.jpg 1024w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE_12-1-300x169.jpg 300w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE_12-1-768x433.jpg 768w, https:\/\/www.footprintseducation.in\/blog\/wp-content\/uploads\/2022\/11\/HOW-TO-DO-DUE_12-1.jpg 1203w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recruitment_Training_support\"><\/span>Recruitment &amp; Training support&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Two aspects that can make or break a pre school business are its curriculum and the quality of teaching staff. It is therefore crucial that you thoroughly evaluate the kind of curriculum that it offers and whether it is well-researched and proven. Also, it is important to determine the support being rendered in terms of recruitment of quality teachers as well as the training support being offered to keep their skills updated.&nbsp; Left on its own, this can become a major pain point and ultimately will impact the learning being imparted and finally the commercial viability of the project<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A systematic and exhaustive evaluation of all the above parameters will ensure that you do not go wrong in your entrepreneurial venture. Here\u2019s wishing you the very best!<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>It is absolutely imperative for a prospective franchisee to thoroughly evaluate any claims made by a Pre school franchisor before entering into a franchisee relationship. An exhaustive due diligence will involve examining both the quantitative as well as qualitative aspects of the prospective relationship. In fact, a 360-degree audit based on information available from a) <a href=\"https:\/\/www.footprintseducation.in\/blog\/how-to-do-due-diligence-before-selecting-pre-school-franchisor\/#more-'\" class=\"more-link\">more \u00bb<\/a><\/p>\n","protected":false},"author":2,"featured_media":516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[244,242,243],"class_list":["post-529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise","tag-pre-school-chain","tag-pre-school-franchisor","tag-preschool-franchisee-relationship"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to do due diligence before selecting a Pre School Franchisor<\/title>\n<meta name=\"description\" content=\"It is absolutely imperative for a prospective franchisee to thoroughly evaluate any 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Amita\u2019s credentials include being one of India's few HighScope Curriculum certified trainers and volunteering as a course leader for Landmark Education, the world\u2019s largest training firm.","url":"https:\/\/www.footprintseducation.in\/blog\/author\/amita-bhardwaj\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/posts\/529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/comments?post=529"}],"version-history":[{"count":0,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/posts\/529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/media\/516"}],"wp:attachment":[{"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/media?parent=529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/categories?post=529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.footprintseducation.in\/blog\/wp-json\/wp\/v2\/tags?post=529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}