WHY MANAGEMENT MODEL 

 

Pointers Franchisee Based Pre-School Model Wisdom-Kids Model
  •  PRE OPERATIONS –
Franchisee Fee /

Joining Fee

 Yes Varies Between 1 Lac to 7 Lacs (Non-Refundable) Not Applicable
Materials /

School Infrastructure

 Needs to Buy from Franchiser at a higher price (varies Between 2.5 Lacs to 10 Lacs Major Expenses taken care by BRAND
Other School Setup Expenses of Franchisee (local) partner Majorly Taken care by BRAND
Training of school Teacher/staff Franchiser conduct but at a cost to franchisee Fully Taken care by BRAND at no cost to Associate partner.
  •  POST OPERATIONS –

 

If school property is rented

 

 Franchisee Partner has to bear completely BRAND bear the Rent/Lease of School building
If the property is owned by the Local Partner Franchiser do not share any expenses for rental value. BRAND bear the Rent. Lease of School building
Principal’s Salary

 

 Franchisee Partner has to bear completely. Fully Taken care by BRAND (Under Brands Payroll)

 
School Teacher’s Salary

 

 Franchisee Partner has to bear completely

 

 Associate Partner has to Pay.
Day to day Admin, expenses

 

 Franchisee Partner has to bear completely

 

 Jointly taken care by BRAND & Associate Partner

 
Student kit (Books, Bags, Uniform etc)

 

 Franchisee Partner has to buy from Franchiser at a cost & resale to

end user

 Fully Taken care by BRAND at no cost to Associate partner.
Initial Branding & local campaigning

 

 Franchisee Partner has to bear complete with a minimal / Moral support from franchiser

 

 Taken care by BRAND at no cost to Associate Partner

 
Day to Day awareness campaigning

 

 Franchisee Partner has to bear cost fully / maximum BRAND shares cost equally with Associate partners (50-50)

 

COLLECTIONS

 

 

 

Royalty

  

Franchiser’s charges between 10-23% on Top Line {i.e. local partner remaining with 15-20% of profitability, applicable only after break-even}

  

BRAND do not charge any royalty from Associate Partner (We pay revenue share to Associate partners on gross School collection

 

Till the operation Break even

 

 

Operational Loss funding

 

  

Franchisee Partner has to bear completely

  

Management Partner & Associate Partners share jointly.

 

In case the school do not runs even after all efforts-

 

 

 

 

Take Away

  

Franchisor earns Franchisee Fee, Trading margins of school set-up infra, earn royalties and Local partner loses his / her Money, Motivation and Faith on the business model.

  

 

Associate partner does not lose any money on capital expenditure for the Project.