Brand X Playschool Franchise Proposal

Executive Summary:
Brand X Playschool Franchise targets young children aged 2-3 years old in Malaysia, providing high-quality
Islamic-based education that aligns with the National Preschool Standard Curriculum (KSPK) and the Brand
X Curriculum. The playschool industry in Malaysia is growing rapidly due to the increasing demand for
early childhood education, and there is a demand for playschools that provide a quality education that
aligns with Islamic values. Brand X plans to offer its services in urban and suburban areas with a high
population density. The franchisee requires an initial investment of approximately RM200,000 to
RM250,000, including franchise fees, equipment and supplies, and initial marketing costs. The franchisee
will generate revenue through enrollment fees, tuition fees, and additional service fees. The playschool
will operate from Monday to Friday, from 8:00 AM to 6:00 PM, and employ qualified and experienced
staff who are trained in early childhood education and Islamic values. The franchisee may generate
additional income by selling branded uniforms, developing and selling their educational materials, offering
franchising opportunities, providing summer camps and holiday programs, offering after-school
programs, and selling branded merchandise. Overall, the franchisee will incur expenses such as franchise
fees, rent and utilities, equipment and supplies, marketing and advertising, salaries and benefits,
insurance, taxes and licenses, and miscellaneous expenses.

Introduction:

Brand X is a Islamic playschool franchise targeting children aged 2-3 years old in Malaysia. Our aim is to
provide high-quality, Islamic-based education to young children, focusing on nurturing their social,
emotional, and cognitive development. We plan to offer a curriculum that meets the National Preschool
Standard Curriculum (KSPK) and our Brand X Curriculum.

Market Analysis:

The playschool industry in Malaysia is growing rapidly due to the increasing demand for early childhood
education. With a population of approximately 32 million people, Malaysia has a large market for early
childhood education. In particular, there is a demand for playschools that provide a quality education that
aligns with Islamic values.

Our target market is parents with young children aged 2-3 years old who are looking for a playschool that
provides a quality education in a safe and nurturing environment. We plan to offer our services in urban
and suburban areas with a high population density.
Marketing Plan:

We plan to market our playschool franchise through various channels, including social media, print ads,
and events. We will create a website and social media accounts to promote our brand and services. We
will also collaborate with local businesses and parenting groups to raise awareness about our franchise.

Our unique selling point is our Islamic-based education, which provides parents with an option to send
their children to a playschool that aligns with their values. We will also offer a safe and nurturing
environment for children, with trained and experienced staff.

Financial Plan:

To start a Brand X franchise, an initial investment of approximately RM200,000 to RM250,000 is required.

This includes franchise fees, equipment and supplies, and initial marketing costs. The franchisee will also
need to secure a suitable location for the playschool and pay for rent and utilities.

The franchisee will generate revenue through enrollment fees, tuition fees, and additional service fees.
We anticipate an enrollment of approximately 50 children in the first year, with an average monthly
tuition fee of RM600 per child. This will generate an estimated revenue of RM360,000 per year.

Operations Plan:

Our playschool will operate from Monday to Friday, from 8:00 AM to 5:00 PM. We will provide a
curriculum that meets the National Preschool Standard Curriculum (KSPK) and our own Brand X
Curriculum. Our curriculum will focus on the holistic development of children, with a particular emphasis
on social, emotional, and cognitive development.

We will employ qualified and experienced staff who are trained in early childhood education and Islamic
values. We will also ensure that the playschool premises are safe and secure, with adequate facilities and
equipment.
Income Model:
Brand X is an early childhood education franchise that offers Islamic-based preschool programs for
children. As a franchisee, your income model will primarily depend on the revenue generated from
student enrollments, as well as any additional services or products offered to parents.

Here are some key aspects of the Brand X income model:

1. Licensee Fees: Fees charged to individuals or organizations that want to use Brand X's program
and curriculum in their existing playschools or early childhood education centers. These fees
would be charged as a one-time upfront cost, as well as an ongoing royalty or licensing fee.

2. Franchise Fees - This refers to the fees paid by franchisees who want to operate a Brand X
center. Franchisees pay an initial fee to obtain a franchise to use the Brand X brand, curriculum,
and business model. They also pay ongoing fees for support and access to updated materials.

3. Books and educational materials: The franchise may develop and sell their own educational
materials, such as workbooks and textbooks, to parents or even to other schools. This can
generate additional income for the franchise while also promoting the franchise's educational
approach.

4. Enrichment Program Fees: Fees charged to parents or guardians who enroll their children in
Brand X’s enrichment programs, which could include after-school programs, holiday camps, and
weekend workshops.

5. Product Sales: Income generated from the sale of Brand X’s educational products, such as
books, activity sets, and digital learning materials.

6. Training and Consultancy Fees: Income generated from providing training and consultancy
services to individuals and organizations interested in early childhood education and Brand X's
program.

Note that the specific amounts and percentages for each income stream would depend on various factors
such as market demand, competition, and pricing strategy.

Other income-generating opportunities that the franchise may pursue. Here are some examples:
 1. Uniforms: The franchise may sell branded uniforms to parents for their children to wear to school.
This provides an additional source of income for the franchise.

2. Advertising and Sponsorship: Income generated from advertising and sponsorships on Brand x's
website, social media platforms, and events.

3. Merchandise: The franchise may sell branded merchandise, such as bags, hats, or water bottles,
to parents and children as a way to promote the franchise and generate additional income.

4. Digital Learning Materials: The franchise may also consider developing and selling digital learning
materials, such as educational apps or online courses, to keep up with the latest trends in early
childhood education.

General Franchisee Expenses:

1. Franchise fees: The initial franchise fee for a Brand x franchise is RM35,000. This fee covers the
use of the brand name, access to the curriculum, training, and ongoing support.

2. Rent and utilities: The franchisee will need to secure a suitable location for the playschool and
pay for rent and utilities. This cost will vary depending on the location and size of the playschool.

3. Equipment and supplies: The franchisee will need to purchase equipment and supplies, such as
furniture, toys, books, and teaching materials. This cost will vary depending on the size of the
playschool and the quality of the equipment and supplies.

4. Marketing and advertising: The franchisee will need to promote the playschool through various
marketing channels, such as social media, print ads, and events. This cost will vary depending on
the marketing strategy and the advertising channels used.

5. Salaries and benefits: The franchisee will need to hire qualified and experienced staff, including
teachers and support staff. The salaries and benefits for these employees will vary depending on
the qualifications and experience of the staff.
 6. Insurance: The franchisee will need to purchase insurance to cover the playschool premises,
equipment, and staff.

7. Taxes and licenses: The franchisee will need to pay taxes and obtain the necessary licenses to
operate the playschool.

8. Miscellaneous expenses: There may be other expenses associated with running a playschool
franchise, such as accounting and legal fees, maintenance and repairs, and professional
development for staff.

Overall, the expenses for a Brand X franchise will depend on various factors, such as the location, size, and
quality of the playschool, as well as the marketing strategy and the qualifications and experience of the
staff. It is important for the franchisee to budget carefully and plan for unexpected expenses to ensure
the success of the franchise.

Calculating Monthly Revenue Generated by a Franchisee:

If we assume that each franchisee has an average enrollment of 40 students per month and each student
pays an average monthly fee of RM350, the monthly revenue generated by one franchisee would be:

40 students x RM350/month = RM14,000/month

Assuming a franchise royalty fee of 10% and an average marketing fund contribution of 2% of monthly
revenue, the total monthly revenue for the franchisor would be:

Royalty fee: 10% x RM14,000 = RM1,400/month

Marketing fund contribution: 2% x RM14,000 = RM280/month

Therefore, the total monthly revenue for the franchisor from one franchisee would be RM1,680/month.
However, it's important to note that franchise fees, royalties, and marketing fund contributions may vary
by franchisee and the actual revenue may differ based on these factors. Additionally, the revenue may
also be impacted by other expenses such as rent, utilities, equipment and supplies, and staff salaries.

Conclusion:

Brand X is a promising business opportunity for individuals who are passionate about early childhood
education and want to provide a quality, Islamic-based education to young children. Our playschool
franchise provides a unique service that meets the demand for early childhood education that aligns with
Islamic values. With a solid marketing plan, financial plan, and operations plan, the franchisee can expect
to generate a steady income while making a positive impact on the lives of young children.

Prepared by:

Syahir Basharuddin

Digital Business Unit