Franchising – An easy way for schools to make money?

My old school Shane has started doing the rounds of Franchise Expos in the hope of setting up franchises in new countries, with Korea, the Philippines, Malaysia, Indonesia and Singapore on the list so far and a franchise already set up in the last of those. Seems like a great business tactic – all you need is a table, brochures and two members of staff at each franchise expo and the financial rewards are potentially enormous. There are also enormous risks in setting up franchises in a country you have no presence in at all, though, not least of which is that the slipping of standards and screwing of teachers that will inevitably go on there could hurt the reputation of the whole chain. The hideous reputation of EF Indonesia making teachers looking for jobs in London turn their nose up at their (okay) school there is one of many such cases I’ve come across myself.

The reputation with teachers can be particularly affected when, as in the Shane case, they will all be recruited in the same way for fully-owned schools, schools in countries where some are franchises and countries with only franchises – often being told which is which only at the last minute if at all.

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2 Responses to Franchising – An easy way for schools to make money?

  1. Andy Mallory's avatar Andy Mallory says:

    I have some experience of working in a franchise of a very good UK school. It was a constant struggle to maintain the basic minimum standards agreed because the owners just didn’t see the need. The school seemed to lose money hand over fist for the first two years and only got into the black when it dropped all pretence of being different/better than their local competitors.

    I think I agree it’s a risky proposition for schools, but many need ot cash in on their reputation when their own business position at home is going downhill fast. If they don’t cash in soon – they will have nothing to sell!

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  2. Alex Case's avatar Alex Case says:

    In this case I wonder if it has to do with having sold off Shane Japan, e.g. maybe Shane Japan will start recruiting its own teachers and so leave their Saxoncourt recruitment bit idle

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