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Saturday, July 31, 2010

Preschool Franchise Business

Kids Preschool Franchise Fees Income Opportunity

DRS group is a renowned business house with well diversified interests and a combined turnover in excess of 500 crores. DRS International School at Hyderabad since 2003 and a chain of over 100 preschools across India under the brand name DRS Kids and Edify Kids have made its presence in the field of education. Curriculum designed on primary year program (International Baccalaureate (IB)) guidelines.

  • Theme based activity centric curriculum
  • Comprehensive reading and writing readiness program
  • Low Investment with high returns with an agreement of 10 years.
  • Training support for the Center Head / Owners for the insight into the program and the management aspects.
  • Marketing support (includes national print and electronic media).
  • Team experts have hand picked teaching aids and resources.

The increasing Global competition has awakened parents to the fact that children need to be fully equipped to face challenges from a young age. Facing a tough struggle to get admission to kindergarten has made them realize that the situation demanded right grooming for their child from an even early age. It was then that the need for pre-schooling was acutely felt. In spite of this, the demand for quality inadequate pre-schools throughout the country is enormous. The recent past has seen the entry of reputed organizations, with a more professional approach, into the field. They have enjoyed a fair amount of success. And paved the way for a new entrant “EDIFY Kids” to grab a major share of the market.

Proven Backing

EDIFY KIDS is an initiative of the DRS GROUP, a well-known business house with diversified interests, with a combined turnover in excess of Rs. 500 crores. DRS has already made its presence felt in the field of education by establishing “DRS International School” at Hyderabad in 2003. Right from inception of operation, DRS International School has moved from strength to strength has created a niche market for itself in the international school arena, truly with its motto, “Strive to Surpass”, DRS International School has pledged to create a society of progressive thinking individuals by providing the finest quality education to its students.

Since inception in 2003, DRS International School has been striving to bring about a transformation in the education scenario. The endeavor is not so much to ‘teach’ the child but to empower the student to embark upon his\her own exciting journey of discovery and learning. It firmly believes that students and teachers are Co-travelers on the road to knowledge and self-actualization.

An ISO Certified Institution, DRS International School is an International Baccalaureate (IB) awarding school. The Board of advisors comprising eminent personalities including Sri T. N. Seshan, IAS, Former Chief Election Commissioner of India and Sri Gulab Ramchandani Ex Head Master, Doon School.

Firmly committed to its vision, DRS International School has, in a short span of time, succeeded in making a mark upon the educational landscape and today figures among the leading schools in the country.

ABCDEFG
1PARTICULARS (Tier I Cities)1st Year2nd Year3rd Year4th Year5th Year6th Year
2No. of Students -PG202530303035
3No. of Students -IK-1152025303035
4No. of Students -IK-2151520253035
5No. of Students -IK-31515203035
6Total no. of Students507590105120140
7Tuition Fee per Student200020002200220024002400
8Total Monthly Tuition fee100000150000198000231000288000336000
9Period of Operation in Months121212121212
10Total Yearly fee ( A )120000018000002376000277200034560004032000
11Admission fee (Non Refundable)500050005000500050005000
12Application Registration fee500500500500500500
13Total revenue from adm fee ( B )250000125000750007500075000100000
14Note: Application fee of 500Rs is not added in Total revenue from adm fee.
15Annual fee (one time Non Refundable)200020002000250025002500
16Total Annual fee100000150000180000262500300000350000
17
18Total Revenue Yearly (A+B+C)155000020750002631000310950038310004482000
19Royalty on tution fee @ 14% from 4th year onwards calucalated
20Royalty on Tuition fee @ 18% (on each child)216000324000427680388080483840564480
21Total Revenue less Royalty133400017510002203320272142033471603917520
22Recurring expenses
23Salary Teaching Staff @ 12:1 (teacher @ 5000 average)150002500030000350004500050000
24Salary Non Teaching Staff80001000012000140001600018000
25Electricity200030003500400040004000
26Stationary & Out-of-pocket expenses400060008000100001200014000
27Miscellaneous200060008000100001200014000
28Telephone Charges100012001400160018002000
29Local Promotion600060008000800060006000
30Rent for school250002750030250332753660340263
31Total monthly expenses6300084700101150115875133403148263
32Period of Operation in Months121212121212
33Total yearly expenses (2)75600010164001213800139050016008301779153
34Gross Profit
35Total GP578000734600989520133092017463302138367
36Fixed expenses
37Agreement Fee285000
38
39Annual Extension Fee750075007500
40Total Fixed expenses285000
41Net Profit after expenses293000734600989520132342017388302130867
42
43Royalty:
44
45YearsPercentage
46
471st Year18%
482nd Year18%
493rd Year18%
50
514th Year14%
525th Year14%
536th Year14%
54
557th Year10%
568th Year10%
579th Year10%
5810th Year10%
59
60The above percentage mentioned will be calculated on Tuition Fee only
61
624th Year to 10th Year an annual fee of Rs. 7500/- will be charged.
63
64There is added advantage to the above proposal from the 4th year onward if the royalty goes up beyond 2.75 lacks per annum, then the associates will have to pay only 2.75 lacks per annum and from the 7th year only 2 lacks per annum.

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