Answers to Frequently Asked Questions for School Franchise
Question 1: Is it necessary that the school be run by a society or can it be run by an individual?
Answer: The school has to be run under a Registered non-profit Trust (minimum 2 members) or a Registered Society (minimum 7 members).
Question 2: Does the Trust/Society need any experience in the education field?
Answer: No prior experience is required as our training and support programmes will provide you with all that you need to run a Red Rose School.
Question 3: I currently own a school, but I am interested in turning it into a RED ROSE SCHOOL School so that I may benefit from its brand, systems, support and programming. Is all this possible?
Answer: No prior experience is required as our training and support programmes will provide you with all that you need to run a Red Rose School.
Question 1: Do you also provide any funding facility and at what cost ?
Answer: No, we donít provide funding from our side, but we do have tie-ups with financial institutions. However, the financing will be at the sole discretion of the funding institution and the rate of interest applicable would be determined by the agency only. Services of a qualified agency can also be made available at a mutually agreeable cost.
Question 2: Can the investment be made in phases? How ?
Answer: Yes. At the same time, it is advisable that majority of investment in infrastructure is made at the time of construction and the remaining investment is required as working capital for the first few years. The construction will be in phases and further investment will occur as these phases advance
Question 3: What would be the investment amount?
Answer: The initial investment amount is decided after studying the potential of the area - the number of students the School is targeting at and the fee that can be charged. Based on this we calculate an investment amount. In addition, a certain amount has to be invested in the advertising and marketing activities. Working capital calculations for the first few years is also made provision for.
Question 4: What will be our the cost of construction?
Answer: Looking at the prevailing market price index, initially the cost of construction can range from Rs.600-Rs.700 onwards per sq ft which includes furniture and interiors depending on the target clientele and also the fee structure that is being targeted by the School. Depending upon the net worth and other criteria, we should be able to secure bank funding for a majority of this amount. Hence to start a School, you need the land and some working capital.
Question 5: How much construction will we be doing initially ?
Answer: The area of construction depends on the local regulations. We shall aim to maximize our constructed area and make it functional to build more facilities and accommodate more students. Initially we shall go in for construction of about 25,000 sq ft which should accommodate about 500 students and should be adequate for the first 2 years. Phased construction can be subsequently done.
Question 6: Why is there large cost variation?
Answer: Every probable location is different and has different attribute s. Land dimension, its topography, soil strata, location, paying capacity of the area, density of residents, can affect the cost of establishing a School. The exact amount of investment will be decided after a market study of the paying potential of the local area and what other competing Schools are offering and charging.
Question 7: Is it possible to start with a low investment? We are considering a low investment initially and wish to expand slowly based on the response?
Answer: No because the trends are changing. If you don’t invest properly upfront, your potential customers will return disappointed and later no matter how much you spend on marketing and advertising, it will be difficult for us to change the perception of the target group easily. Hence it is important that when you launch the School, you create the hype and then live up to the people's expectation as they come to visit the RED ROSE SCHOOL branch. However you can construct the school in phases, but whatever is constructed should be up to the RED ROSE SCHOOL Standards.
Question 8: Are there any other hidden costs?
Answer: Absolutely not, we have transparent policies and there is no hidden cost.
Question 1: What is an ideal location for a RED ROSE SCHOOL? What is the criterion for approval of location?
Answer: The branch can be situated at any good location where students have easy access to the School. Criteria like land size, accessibility, visibility, neighborhood, lease rental to be paid (if leased), competition, etc. will be important
Question 2: Would you help in locating a suitable place to start the School?
Answer: Yes, once the agreement is signed, a site selection professional will work with you, as well as with local brokers or developers to evaluate sites in your market and help identify a proper location for your new school.
Question 3: How much space is required and of what kind? -Residential, Agricultural, Institutional or Commercial?
Answer: Any amount of space will do as, long as it is allowed by the local civic authorities or diversion is permitted. However, you need to have at least 2 acres to set up a CBSE-affiliated School and 1 acre for an MPBSE-affiliated School.
Question 4: In city land is high-priced and scarce how far we can go out of city ?
Answer: The thumb rule is that the further you go from the city, the larger the area should be as you are competing with Schools in the city. Hence your disadvantage in terms of location should be compensated with more land and therefore more facilities.
Question 5: Is it compulsory that the land should be owned or rented?
Answer: No, it can also be taken on lease. The lease has to be registered and irrevocable for at least 30 years.
Starting The School
Question 1: Will you help me to construct the building?
Answer: The construction of the school will be as per the specifications of our architect and our perception of a RED ROSE SCHOOL
Question 2: What board will be affiliating to (ICSE or CBSE or IB or IGCSE) ?
Answer: The School can be affiliated to any of the School education boards. We should ideally choose the School board after surveying the local population and market needs.
Question 3: Does a School require a license? How can I get the recognition from CBSE board?
Answer: The School does require recognition, NOC (in case of CBSE or ICSE-affiliation) from the State Government and affiliation from the concerned Board. It will be a part of our duty to guide you on the affiliation process.
Question 4: How long will it take to open a school?
Answer: It depends upon the quality and condition of the existing infrastructure. Accordingly, it may take from 2 months - 12 months. However, you can expedite the process by speedy documentation.
Question 5: Till what class will we start in the first year?
Answer: Initially we shall admit children up to class 5th and every year, progress up to class 12th. To admit children to class 9th -one must have affiliation to a School board and the process takes 2-3 years and we keep 1 year as a safeguard in case of any procedural delays.
Question 6: What will happen during this period?
Answer: Several major tasks are synchronized in parallel. You need to obtain the furniture, attend your training programme and also get other educational equipment in order. At the same time, pre-marketing is conducted in your area using various forms of advertising media and you shall be making preparations for the implementation of the Marketing Plan designed by our marketing staff for your School. We manage this process with checklists and active support in order to get you started as soon as possible.
Appointment of Teachers & Training
Question 1: Will RED ROSE SCHOOL provide qualified teachers? What would be the salary and remunerations of the staff?
Answer: The quality of staff is directly proportional to the quality of education offered by the School. Hence it is crucial that we personally supervise the recruitment process to attract the best possible talent. The teachers and other staff have to be recruited at a local level and we do assist the franchisee at the time of recruitment and training of staff. The number of staff members will be decided keeping in mind the response to the admissions. Their salary will be governed by the market, but in no case will it be less than government and as stated in the affiliation bye-laws of the concerned Boards.
Question 2: How will I learn to run my School?
Answer: In addition to the procedures, we have created a training programme to give you practical understanding that will teach you to run your School. You will also be in regular touch with the head office by way of video conferencing and guidance cell to run the School. Moreover, if you have been selected as a franchisee, you are assured that we believe your vocational skills.
Question 3: How much does training cost?
Answer: The cost of the initial training is included within the License Fee. The only items not covered are your own travel, accommodation and food expenses. Further training may be chargeable as per need and requirement.
Question 1: Does RED ROSE SCHOOL provide the books, study material, uniform, etc., or do we have to organise the material locally?
Answer: Yes, RED ROSE SCHOOL provides the books, uniform, study material like worksheets etc. and you don’t have to procure the things locally. We will have our own suppliers and you have to buy the prescribed books and uniforms from them. For other School requirements, we have a recommended list of suppliers but you are free to have local suppliers if they work out to be cheaper, provided the quality is up to the mark and approved by us.
Question 2: How much involvement will I need to commit to the School as a franchisee?
Answer: Most of the day-to-day communication can be directly between the School Principal and us. However, as with any other organization, you will need to recruit & manage your staff, monitor the financials and look after some administration work as well.
Question 3: What is our working?
Answer: You will be responsible for the day to day administrative responsibilities of running the school.
Question 4: Can I offer additional services at the School location such as sports coaching, tuitions and hobby classes?
Answer: Some of these are wonderful "value-added" services. If you have the space in your location for these services and you are licensed to provide them or you would like to employ or contract with people who are licensed to provide these services, you may go ahead with our permission. We reserve the right to approve any proposed additional services and require all applicable licenses, should we grant approval.
Question 1: What fee will be charged from the parents?
Answer: Our school fee structure consists of the Registration Fee, Admission Fee, Annual Charges, and Monthly Fee. We do not have a fixed fee structure as the cost structure (population, paying capacity, salaries, real estate costs, local market conditions, running expenses, cost structures, amount of investment done) vary between city to city and within cities as well. Similarly on the revenue side, the paying potential is different for different areas. So, we fix the fee in consultation with the franchisee keeping in mind all the above factors. The right fee can be set with a combination of our experience and your local knowledge.
Question 2: How much will it cost per month to run such a school?
Answer: The amount can be devised from calculating teachers’ salaries, salaries of other staff members such as Principal, Administration, Accounts, Security Guards, Drivers, Attendants etc., Electricity Bills, Telephone Bills, Property Tax, Maintenance of Building, Marketing & Advertisement Expenses.
Question 3: How many students can the School expect?
Answer: We do not provide any projections or authorize anyone else to provide this information, because this number can fluctuate a lot. Your school strength will depend on a number of factors, such as geography, competition, investment, site location, size, your local market, your advertising & promotional efforts, your working acumen, current economic conditions and how well you run your school according to the Standard Operating Procedures and many other factors. Because of these variables, there is a wide range in the number of students you might expect.
Question 4: Can I get a loan for this project?
Answer: Yes, you should be able to secure funding – subject to eligibility.
Question 1: Do you grant exclusive territories?
Answer: We believe our model is robust enough to be able to operate successfully in a wide variety of locations and demographics, it would be near impossible to create a set of one-size fits all restrictions that would be fair to both our associates and to us. For example, one city might be able to easily accommodate 5 schools in a 10 km radius, while another suburban town could accommodate 2 schools and yet another area might only be able to accommodate a single school over 3 or 4 towns. It is critical that both our associates and we have the freedom to grow intelligently and respectfully and make decisions based on information provided on a case-by-case basis. Because of all of this, we believe the fairest way to approve a new branch is to assess each location as it is proposed to us, based on a variety of factors and approve locations that we believe will allow for maximum opportunity for success. It is our goal to sell territories that are large enough for you to realize your full growth potential, but not so large that potential students are not served adequately. However, we do give you an exclusive radius of 3 kms within which we shall not open another RED ROSE SCHOOL branch.
Question 2: How long is the term of a Franchise Agreement?
Answer: The agreement will be for 30 years renewable mutually after that.
Question 1: Do you offer a master franchise or something or you just have unit franchise?
Answer: Yes we do give unit as well as master franchise.
Question 2: Can I start more than one franchise?
Answer: Yes, you can start more than one franchise but we would advise you to start the second about 6 months after the first one, as you should be giving your full efforts to kick-start the first one.
Question 1: What franchise fee do we have to pay you? Is any part of the franchise fee refundable?
Answer: The Franchise fee is non-refundable and consists of 2 parts – an initial license fee and an ongoing royalty at a fixed % of the fee collection (excluding transport and refundable amount). The amount will be disclosed after your request has been found fit in the initial screening.
Question 2: When is the licence fee to be paid to you?
Answer: The license fee is to be paid at the time of signing of agreement.
Question 3: Is the royalty payable on revenues or on net income? What is the frequency of payments?
Answer: Royalty is to be paid on revenue and is paid to RED ROSE SCHOOL through an escrow account and settled at mutually agreed periods.
Question 4: Any minimum amount to be paid annually?