Franchise English Schools

Smith's School of English, Shanes, Joy, Pingu, English First, these are just a few of the names that crop up in an Internet search for franchise English Schools.

Just as with any other franchise business a franchise English school is really a two way street. So long as both sides to the agreement live in harmony then the agreement is very much a mutually beneficial state of affairs. Both sides to the agreement benefit from being together, both take something or indeed many things away from the agreement. However for most people thinking to join a franchise the thought is how to find the right franchise that suits and to make sure that franchise is a solid business that has performed well in the past and has plenty of room to grow. These are valid criteria however what most forget is that the franchiser is pretty much looking for the same thing. The franchise is a system that can only remain healthy and grow if it accepts franchisees that have a good work ethic and have plenty of room to grow on a personal level. Therefore another way to look at selecting a franchise is to find one that suits you and where you think you will suit the franchiser. After all if you suit the franchisers plans and the franchise system suits you then all should, in theory, work out fine for both of you.

The franchiser has to provide the services promised within the franchise contract or the local franchisee will not be able to perform. Within the franchise agreement you should be able to read what the franchiser expects of you as a franchisee and what they expect to provide as a franchiser. If you yank out all the legalese and read between the lines you will be able to find what is important to the franchiser. Once you find what is important to the franchiser you will be able to do a check on your own criteria as to what you think is important in a business and in so doing decide if you will be able to enjoy being a member of the franchise group. You will be bale to see if the franchiser stands on principals that are important to you. For example, do they care only about making money first or do they put people and service first. If you want to make a quick buck and the franchiser is in business for the long run you will become frustrated with the time and human resource he consumes taking care of people. But if you agree it is important to care for people today, to help the underdog even and that in doing so you will reap rewards in the future then you will enjoy and take pride in being a member of such a franchise.

As with the franchiser the franchisee must also comply with the franchise contract. Naturally this means it is very important to check the contract over before you sign it. I also suggest you search for as much negative and positive as you can about the franchiser. Search our franchisee testimonials. Ask to speak with actual franchisees and ask to be allowed to choose which franchisee you speak with. Ask to speak with franchisees in private. Talk with family, friends and professionals about your decision. In short, do your due diligence. Then once you have joined work your heart out and make your dream come true. If others that are in the system are doing your dream you can to.

O.K. so we now know franchising is a two way street. Both franchisee and the franchiser stand to win and to lose after they agree to work together. Therefore as a potential franchisee understand that at any meeting or within any communication the franchiser is being just as careful as you are. The difference is that normally we can expect the franchiser to better at the process than you are. I mean it stands to reason as he does it for a living and has plenty of experience. With a good franchise school system I would suggest that throughout the due diligence processes you should find the franchiser teaching you things you need to ask about. A good franchiser will teach you more than you ask as that too is what he does for a living.

What you need to do is learn what kind of questions to ask and what to watch out for in your communications. I have offered here a few points I think are important.

How big is the English teaching market in the country/area you think to buy your English school franchise? The franchiser should know and be able to explain why. I mentioned earlier that most franchisers (not franchisees) go broke before they hit eleven years but those who remain longer than that eleven years have proven they can survive. It is safe to believe that any franchiser in business for eleven years or more knows the market and can explain it to you using some quantifiable and transparent means.

2. What is the franchiser looking?

If you can identify what the franchiser is looking for then you are a long way along to knowing if you want to work with the franchise or not. You will most likely find that a good franchiser knows exactly what they are looking for and will happily tell you. If they answer using words like of hard working, steady going, sensible, tenacious your doing O.K. if they use words like easy, get rich think twice.

3. Franchisee / Franchiser dispute?

What happens when you the franchisee and the franchiser just can not agree on an issue? Will you be tossed out of the system? Does the system have a method of listening to franchisee concerns? Does it have any evidence to prove modifications to the franchise system as a direct result of a franchisee grievance?

This may sound very obvious but there are many franchises that do not allow the franchisee (that's you) to sell the business. You may leave but profit from the resale. To me this is ludicrous; you built you should be able to sell it. Investments are assets.... right? Well, I mean to say, what happens after X years of building and owning your successful English school franchise and you're ready to retire or move on? The students you and the franchise built are still attending. The teachers you and the franchise system put in place are still teaching. If the school changes hands the franchiser will continue to make money as the franchiser, but what will you get? Should a new owner jump in and start making money off the school you helped build in place of you? Not without paying you your due I say! Some franchisers agree with me and some don't. Check if you're allowed to sell your school as an asset or if you simply must hand it over when you decide to leave. Most likely a fair system will require a transaction fee as part of the sale, but the bulk of the money for that sold school should go to the initial investor: you. See that it does before you sign a contract.

5. How many years has the franchise been in business?

KMPG has conducted studies that show 75% of all franchisers (not franchisees) go broke in the first 10 years. This suggests that if the franchise has been active and is still in business after 10 years it has a good chance of going the distance and supporting you. Oh and by the way the financial times reports that 92% of all new businesses go under in the first 5 years unless they franchise and then the rate drops to an amazing 90% still in business after 5 years. Or in other words a franchiser will only be able to prove their mettle if they've been in business long enough to do so. A proven history of success should be weighed heavily when considering your own likelihood to succeed in the franchisers footsteps. Take care to check when the franchiser started franchising not started business as many state within their materials. Sure it is good to know how long they have been in business but what counts to you the franchisee is how long they have been directing their resources both financial and human, to looking after franchisees.

6. Will you be forced to only buy supplies from the franchiser?

Think of the English school what will it need. Can you buy those products from any supplier? The pencils, the white boards, the chairs, tables, advertising materials, signs and all those other things. Are you free to buy from the cheapest supplier?

Sounds like a pretty dumb thing to ask for however you will be surprised how many franchises do not offer initial training. The length of the training may vary from system to system but be sure they do have some training in place. I would also ask if you will be issued a training manual and if it is possible to receive the manual prior to the actual training day. Once you have become a franchisee I see no reason why a francher would withhold the manual and it will give you a head start at training.

8. Does the franchise provide ongoing training or only the initial training?

This is a very important question. The majority of franchisers I have reviewed do not offer ongoing training and to me this just says that the franchiser does not expect to develop the system! Makes sense to me that if the system develops you would need ongoing training.

9. Do you have access to speak with the managing director of the franchise at any time?

Be real careful here. I am talking about the boss. Not a staffer. I hand my money over to a franchise owner I want to be able to speak to the owner. Now I will back off just a little here when we start talking about huge publicly traded ventures. In that case the CEO will do just fine.

This question goes to exclusivity. Check your contract. I know of franchises that swamp franchisees who are doing well with new franchisees. They feel that if one does well two will do twice as good. I don't agree and I am sure a franchisee within such a system would not either.

11. How many franchise English schools has the franchiser have operating?

Not as clear cut as long term success, but this is a clear indicator of the systems overall strength. A small handful of school can mean a few tight nit business men are working together to make an idea work, but a nation wide school representation is more appropriately matched with a franchises natural appeal: The idea that anyone with the right training and support system can start and succeed at their own business. Remember the franchiser needs enough income to look after you. As with any franchiser an English school franchiser will really be tested when one of their goes bad. That's when you see who has the desire and money to look after their English school franchisee. What will they do? Will the franchiser ignore the plight of the failing franchisee or pour will they their own resources into getting the failing franchise moving? I know if I was failing I would want help from the big boy. Make sure there are enough English schools within the franchise system to make it financially strong.

12. Does the franchiser hide the contact details of franchisees?

You should have a copy of the contract in your hands before you ask for it. You will normally have to sign and non disclosure form to receive the contract and that is fair enough. With the expansion of email as a normal means of legal communication it is very easy for a franchiser to give you the contract before you have finished asking questions. You need time to read over the contract. Get is as quickly as you can.

13. Will the franchiser arrange private meetings with franchisee for you to speak with?

When buying an English school franchise do you best to speak with actual franchisees. Most franchisers will be happy for you to speak with franchisees. I do find that many of the franchisees are busy and do not like to spend too much time chatting however when you do get them to talk they are a valuable source of information.

This is a very difficult question to satisfy. When we see franchise experts discussing Return on Investment I actually have a bit of a giggle. A franchise is an investment sure, but so is a university degree. Paying for and working hard at a degree is similar to paying for and working hard for a franchise. Both sets of actions do nothing more than open a door to possible earning. You can ask what existing school owners earn as some kind of measure to what kind of income is available within the system but it's no guarantee you will do as well or will not do better. Of course do take an indication from the franchiser. 15. How long before I break even and start making back?

If this question isn't on your mind; it should be! Statistics of the companies past successes are the best indicator here. Talk is talk, but numbers walk. Can a franchise English school system show you other schools that have prospered using their system? To be completely fair, financial information is often privileged and belongs to the individual company. Most certainly beware of any company that offers Financials without a CA in place. I suggest that means that don't care. I am not that concerned with the financials of the franchiser as I believe these guys may well be expert at managing their numbers. I mean just take a look at Enron, public company right, numbers in full view right....WRONG. It's best to see numbers of actual franchisees. That is the place to see what will happen to YOU. AS I said these numbers are private and as such may only be available on request and by serious inquiries only. If it can't be evidenced at all however, even to a full fledged new franchisee, be aware you may be flying without a parachute. There's nothing inherently bad about being a pioneer if you believe in the investment; just make sure it's a conscious decision on your part, not an unwelcome surprise. 16.What is cost to start?

Start up cost can be a huge determining factor in whether an opportunity is available to you or not. It can also be an indication of the value of the product, or the amount of history and structure that backs it up. While a high initial investment by no means guarantees the highest quality price, it's important to remember that the lowest initial investment may not necessarily be the best deal. You want a value, not a fire sale.

Whether it is an English school franchise or any other franchise, it's equally important to consider what the franchisor is looking for in you before you sign any franchise contract. Some of these things are concrete, such as financial records or academic qualifications. Some franchises require very strict academic credentials to even consider an interview. Financial record can be equally important. Be prepared to prove that you have the available funds to make the investment, and then some. If a franchisor asks you "how much are you willing to invest?" it does not mean they expect you to pay. Rather the franchiser is trying to determine if you are even capable of handling such an investment. It's a good idea to answer in a straight forward manner and with confidence if asked about investment capitol.

Some English school franchise systems might be more open in respect to credentials (although an appropriate amount of investment and start-up capitol is fairly standard). They may instead be very strict in terms of the type of people they let into their system. It's a little known fact that this is another reason franchises are often so much more successful than independent business owners. When a franchise system begins negotiating with you, often times they are taking specific measures to judge your character and foresee that you will be able to work successfully and co-operatively within their system. Franchise systems are groups of people working together under the same banner; the same ideal. Often times franchisers are looking for people who are open minded and who are willing to trust the system that is in place. After all if the system wasn't successful as is, you might not be interested in it in the first place. Another personality trait sought after by franchisers is a good work ethic. A franchise is not a free ride. Even in and English school franchise where you act "only" as the owner/manager of the school and hire teachers to handle classes, there is still a great deal of work to be done to steer your business to success. A franchise system offers support, history, name recognition, and methods for being successful. It is the franchisee who must actually use those methods to meet that level of success. Someone with a confident attitude, who trusts the successful methods of the system, who doesn't make excuses and is eager to work to make the business succeed, is often the ideal franchisee candidate.

Beyond that, and depending on the size of the organization, a franchiser may be interested to find out what kind of person you are. Do you fit the image of the franchise? After all it will be the franchises name you're using, not your own, for better or for worse. Certain character traits (alcoholism, promiscuity, lack of punctuality, fowl language, lack of respect for the culture around you, etc.) can give a franchiser pause as to whether they want you to represent their group or not. A potential investor can feel empowered as the investor. It's easy to forget that even as a customer of the franchise system, it is still a two way street. Taking the same steps toward preparedness, responsibility, and general politeness as you would in an interview for an employment position can go along way not only to being accepted into the system initially, but understanding their philosophy and goals as well.

So you've decided you want to move out of the employee sector and own your own business. Question is: which opportunity is the best for you? A quick Internet search for the terms "English school franchise" will turn up a wealth of information.

One might not expect so many opportunities for what some would consider a "niche" market, but global interest in learning English as a second language has pushed this industry forward. Good business is where you find it. I must say here that I have reviewed many franchise businesses over the years but have never come across so much negative press within free Internet media as I did within the English teaching business. It would seem that any disgruntled employee or ex franchisee just opens up and starts firing with both barrels and using some pretty foul language on free blogs and forums. I took a good look at this and it is my opinion that due to the immature nature of the market it still has some lawless cowboys making a mess within its ranks.

They are thankfully in the minority and I found the negative to be far outweighed by the positive testimonials of the actual franchisees and their staff.

Pingu's English High end!

This Franchise has an initial investment cost of at least US$50,000 and up to $150,000. THis price covers the purchase of a master franchise license. They school was established in 2006 and has been franchising since 2007. It has a rather innovative approach in that most of its marketing is based on the license of a cartoon character that is purported to be well known. Incidentally it was my first time to hear of such a character, but it's been a long time since I watched cartoons myself. The character does have stacks of children's books published and if tying your school to an international icon is your style, this may be your franchise. If you're willing to pay, you're willing to own as they say.

Joy English School

This school located primarily in China received some bad press from disgruntled employees who were interviewed for a news article on sub-standard working conditions in English conversation schools in general. They were not the only subject of said article, but they were mentioned by name. As a franchise owner how you treat your employees is at your often times at your discretion but a schools overall reputation is important to consider when deciding to back their name with your investment. Predictably various staff members came forward to defend the name of that same school. Sometimes media can be more interested in selling papers than spreading real truth. If you do see a burst of negative hype, take the time to determine if it's a well meant warning or just the flavor of the month. That being said this school has been in operation since 1981 and seems to have a fair number of schools in various countries.

Smith's School of English

This school has a professional web site. Loads of information. Been in business since 1996. It has also had its share of negative attention in the form of blog publications. It is also the longest running group of foreign owners in its country of operation. The franchise is unusual in that it has NO native owners. All schools are owned by teachers. Hearing both sides of any story is a good idea before making a substantial financial investment, even if that means wading through the mud a bit. In the end it may be a case of a few bad apples in a barrel where a lot of other happy "apples" have nice things to say about this school on the Internet as well. The franchisee group has put more effort into to letting us know what's going on inside their ranks than any other English school franchise or any other franchise I know for that matter. They even have a soapbox for franchisees and their staff to speak out on. Established in 1996 this foreign owner friendly franchise reports 45 schools nationwide at the time of this writing the locations and contact information of which are published on their web site.

Part of the Saxoncourt Group this school is big enough to have had it's fair share of ex employees with sour grapes and there is again an enormous amount of negative press from what appear to be ex employees. In addition they franchise to nationals of the countries they are in, keeping the foreigners in teaching positions. There may be a way around this but it's not openly advertised. As a longstanding company with many schools in 5 different countries the published yearly financial reports and have a wealth of information available on their website. So what do you want to do...?

In the end it comes down to something as simple as personal preference and trust. If the numbers looks right on the investment, find out what the people are like. For those franchise opportunities that do make staff and franchisees available for consultation, get it straight from the horses mouth. In many ways a franchise is a symbiotic relationship. Neither franchiser nor franchisee can exist independent of one another. Getting to know the organization and people with who alongside you will be working may be the most important step of all.

English First

This franchised school seems to have a lot of available information about becoming a student or becoming a teacher, but what about becoming an owner? It could be that ownership is limited to natives only. Perhaps direct contact with their offices will prove otherwise. Contact numbers are available in various countries and they claim to have 40 years experience teaching English.

Modern English

As mentioned earlier price of initial investment can be an indicator of the worth of that investment. On this franchises web site price increase is said to be imminent and only a paragraph away prices for initial investment are being reduced. There are even 2 instances of currently owned franchises being sold at the same price as a brand new franchise. Does that add up? There may very well be a good reason for the dramatic price fluctuation but it should be researched further nonetheless. The school has been in operation since 1998 and has shining testimonials on their website from former and current teachers.

Planet ESL

Again, loads of information regarding students and foreign part time teachers, no obvious info for foreign ownership of franchises. Established in 1999 this English school franchise is based primarily in Korea.