Over the last couple of decades, the preschool market in India has witnessed massive growth. As more and more parents are seeking out the best early education opportunities for their little ones, the play school market continues to flourish across the urban and semi-urban landscape. This simultaneously offers dynamic and highly profitable business prospects for budding entrepreneurs who have a limited financial budget to get started.
In this article, we will explore what starting a play school franchise costs in India and how much would you actually need to invest to run the best play school franchise in India.
Best play school franchise cost
Play School Franchise Costs in India
Setting up a play-school franchise in India requires a considerable amount of upfront investment. The amount of initial investment often depends on the preschool brand you are franchising – several factors, including the franchisor’s brand reputation and space & quality commitments, can determine the initial fees that get you registered as a franchise. Other factors like the location where you are setting up the play school, its infrastructural requirements, the number of staff you are hiring, and other utilities will add up to the initial franchise fees and all together constitute the overall upfront investment.
Let’s take a closer look at all the expenses that typically add up to the play school franchise costs:
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Franchise Fee
First and foremost, comes the franchise fee that you have to pay the franchisor preschool to register yourself as a franchise operating under their brand name. It can be either a one-time fee or a renewable deposit. For most leading play schools in India, the franchise fee covers a specific period of time after which you have to renew it to continue being a registered franchise of the brand. It is essential to point out that when you pay the franchise fee, you are not only getting the rights to operate under it but also usually getting additional resources, including ongoing support in curriculum management and staff training. Some of the best play school franchises in India will also help you train yourself in running a preschool, in case you have no prior experience.
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Property and Infrastructure Costs
A play school requires space for classrooms, play areas, and other extra-curricular activities. It also needs appropriate child-safe teaching and play equipment, along with furniture, educational materials, and kitchen and sanitation utilities. All these fall within the property and infrastructure costs which are usually included in the upfront investment amount. For instance, if you do not have a ready property to set up the preschool franchise, you will have to buy or rent a property and the additional infrastructural needs. The total costs corresponding to property and infrastructure will depend on the scale, quantity, and quality of your facilities.
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Operational Costs
Just setting up a play school isn’t enough. You will have to run it too. This will add up to certain recurring costs. The operational costs are thus the ongoing expenses that you will need to consider long-term. These recurring expenses will include administrative costs, infrastructure maintenance costs, utility costs (for eg., electricity bills, rent, taxes, etc.), and staff salaries.
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Marketing and Promotion Costs
Marketing helps you to expand your outreach to attract parents. Without proper marketing and advertising initiatives in place, it is hard to succeed in this overly-competitive industry. Hence, you need to set aside a budget to meet your marketing and promotional needs. Marketing costs can be included in the upfront investment as well as in recurring expenses. Even though most of the leading play school franchises in India offer marketing support while setting up your franchise, you may still need to attend to expenses that come with local advertising, promotional events, and so on.
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Royalty Fees
The franchisor preschool earns money by taking royalty fees from the franchisee. So, as a franchisee, you will have to factor in the royalty fees within your finances as well. For most play school franchisors, the franchise fee is in the form of a specific percentage of revenue accumulated by the franchisee. The percentage can vary depending on the preschool brand and/or the location and scale of investment. However, on a positive note, the royalty fees ensure the franchisor’s continued support and resources.
Top 3 Best Play School Franchises in India to Set Up with Low Investment
Now that you what factors influence the play school franchise costs, let’s explore the best play school franchises in India that require minimum short-term and long-term investments.
1. Grow Inn Steps
Grow Inn Steps Logo
Total Investment: INR 5-50 lakhs (offered through three different investment models: Gold, Platinum I, & Platinum II)
Investment Breakdown:
Tier Gold
Investment: INR 5 Lakhs
Returns: 50% YoY
Royalty: 0%
Tier Platinum I
Investment: INR 40 Lakhs
Returns: 40% YoY
Tier Platinum II
Investment: INR 50 Lakhs
Returns: 18% revenue share
About Grow Inn Steps: Grow Inn Steps is one of the fastest-growing preschool franchises in India that offers low-investment, flexible play-school franchise opportunities to emerging entrepreneurs. The brand boasts a budding nationwide community of early childhood education specialists and follows an integrated curriculum that prioritizes the cognitive, emotional, and social development of the children, promoting cohesive growth and all-around well-being.
The dynamic, highly profitable preschool franchise business plans provided by Grow Inn Steps are backed by a partner-first policy that empowers you as a franchise owner. Moreover, they offer profitable franchise models to choose from – you can either choose to open a Partner Owned/Partner Operated play school or a Partner Owned/Company Operated play school. You will have financial benefits as well since the brand offers different investment structures as well. You can start a Grow Inn Steps play school franchise by only investing INR 5 lakhs.
2. Kidzee
Kidzee Logo
Total Investment: INR 12-15 Lakhs
Franchise Fee: INR 1.5 – 2.5 Lakhs
Kidzee is one of the best play school franchises in India and is currently operating in 300+ urban and semi-urban areas across the length and breadth of the country. The playschool brand is also known for its considerably low playschool franchise costs. You can start your own play school by partnering up with Kidzee’s nationwide play school network with only a franchise fee of INR 1.5 lakhs. All you would need is an area of at least 2000-3000 sq. feet, either owned or rented. The total upfront investment of opening a Kidzee franchise will be anywhere between INR 12 and 15 lakhs, depending on your location and infrastructural considerations. Kidzee demands an 85% revenue split and offers the franchise term for 6 years.
3. Euro Kids
Euro Kids Logo
Total Investment: INR 10 to 15 Lakhs
Franchise Fee: INR 50k – 1 Lakh
Euro Kids is one of the leading play school franchises in India with 1200+ preschools spread across 350+ cities all around the country. The playschool brand demands a budget-friendly franchise fee that ranges between INR 50k to INR 1 lakh, an area of at least 1000-2000 sq. feet, and a total upfront investment of around INR 10-15 lakhs. Moreover, you will need to ensure that your desired space has CCTV surveillance, medical facilities, child-friendly infrastructure, and fulfills safety regulations requirements to start your own franchise today. The play school franchise costs for Euro Kids will be renewable every two years.
Conclusion
Setting up and starting a play school isn’t an easy task. And neither is it cheap. Remember, the more you spend on infrastructure and resources, the higher the quality will be of your play school. Unsurprisingly, the best play school franchises in India have the highest play school franchise costs.
However, it is equally important to stay within a budget, especially when you are starting out because is the very obvious financial risks. Choosing a low-cost play school franchise will thus better suit you as a beginner. Once you have established your play school franchise well enough, you can scale your business and invest in more expensive, high-stake franchise models.
