Table of Contents

TABLE OF CONTENTS

1 Brand Introduction

2 Industry Assessment

3 Competitor Analysis

4 Feasibility Analysis & Opportunity Assessment

5 Business Model Recommendation

6 Franchisee Profiling and Roll Out Strategy

7 Franchisor and Franchise Responsibilities

1. Brand Introduction
 Engagement background
 Key Objectives
 Brand Overview
 Vision Mission and Values
 Programs Offered
 Brand USP
 Engagement Background
TWEETY KIDS INTERNATIONAL (Making of India) is an Initiative inspired by
Make In India concept which emphasises to inculcate innovation, creativity and to
provide highest quality preschool education with a child-centric approach to teaching
and learning

TWEETY KIDS INTERNATIONAL operates in three locations across Hyderabad and

plans to expand its presence in the pre school sector and day care centre in India

TWEETY KIDS INTERNATIONAL is a chain of Premium Learning Centres in the

emerging vibrant communities of Hyderabad aspiring to make quality preschool
education accessible with highest standards through simplified and fun based learning
curriculum
Key Objectives
 To understand the feasibility of concept development
program in India
 To review the existing players in the market and their
strategy
 Opportunity Assessment for the brand TWEETY KIDS
INTERNATIONAL
 Creating suitable value proposition
 To develop suitable franchisee/licence model for
TWEETY KIDS INTERNATIONAL with financial terms &
conditions
 To develop the roll-out plan
 Vision Mission and Values
To be an advocate for all children,
celebrating their strengths to enjoy today
MISSION and learn for tomorrow by providing quality
child centred education

To promotes active lifelong learning that

support students to develop the necessary
VISION dispositions
to become successful learners who are
confident,
creative and informed global citizens

VALUES We recognize Children as seeds for Future

and a precious gift of god
 Programs Offered
TWEETY KIDS INTERNATIONAL
provides a safe and nurturing
environment to every child of the
community through premium
Daycare facility.
Children of all ages are engaged by
passionate staff to get ignited.
Various indoor and outdoor
activities are conducted. The staff
helps the child complete their
homework too.
Age Group: 1 year and above
TWEETY KIDS INTERNATIONAL,
The Unique In-house - Early
Childhood experts integrate the
digital methodology and pro
active participative listening based
education in the Play-way concept
for Interactive learning.
The Innovative pedagogy looks at
creatively constructing learning
spaces promoting play and Inquiry
through authentic connections
with nature.
Age Group: 2 Years – 5 Years
TWEETY KIDS INTERNATIONAL
also offers rich learning
experience to enhance and
support specialist programs in
Science Technology Arts
Engineering and Mathematics
(STEAM).
Taking pride and utmost
responsibility to shape and
make the future of the children
by imparting best quality
education in a play way method
Age Group: 5 Years - 9 Years
 Pre-School
The pre-school is divided into two categories

Below are some of the examples of activities taken up in the play group:

 Eating etiquettes  Basic etiquettes like wishing

 Eye-hand co-ordination people
Play Group  Picture Talk
 Feelings and Family
 Personal health & hygiene habits  Rhyme on Television
 Doodling  Listening & Speaking skills
 Building of trust is developed
 Potty trained

Below are some of the examples of activities taken up in the play group:

Nursery  Development fine motor skills  Simple food & plants

 Community engagement  Simple words
 Ethical Behavior  Math (Addition, Subtraction and
 Personal and Social abilities multiplication)
 Developing positive intercultural understandings
 Diction, pronunciation &
 Pre-writing stokes enunciation
 Numbers and Counting backward  Voice modulation
 Alphabets
Learning Centre Snapshots
Learning Centre Snapshots
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Learning Centre Snapshots
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 Brand USP
TWEETY KIDS INTERNATIONAL is a unique and well equipped learning centre with all
the best in class facilities of an International preschool

3
Early
Childhood
Education with
Global outlay

2 STEAM Based
Curriculum

4
Safe, happy,
nurturing and
evolving
environment

1 Integrated and
Holistic Curriculum

6 5 Child
Centered &
Fun Based
Learning
 Presence in India
TWEETY KIDS INTERNATIONAL is currently operating out of only one city i.e.
Hyderabad. It operates in 3 different locations. The below table list the learning
centres and their area size.

Learning Centre Square Feet

2. Industry Assessment
 Understanding the Education Ecosystem
 Overview of Pre-Schools
 Scope of Growth
 Growth Drivers And Challenges
 Competitive Landscape
 Indian Education Sector
The below table explains the structure of Indian education sector.

Education in
India

Formal Informal
Education Education

Vocation
K12 Higher Education Pre-Schools Coaching Institute
Education

Rising income levels and willingness to spend on the education has increased the
focus on the education sector.
 Indian Education Sector
Indian education industry is estimated to be around US$ 100 billion. The private
education sector was valued at USD 95.8 billion in 2015E ,and is estimated to reach
USD 133 billion in 2020F.

1.60% 0.40%
The country has more than 1.4 Higher Educa-
million schools with over 250 tion
million students enrolled and
more than 36,000 higher School Educa-
education institutes. 38% tion

Out of the total pie, the pre- 60% Pre-School

school segment contributes
about 1.6% to the overall Others
Indian Education Market .
India Education Market

To franchise the brand, Francorp consulting is engaged to understand the

feasibility of the model and help in roll out of an actionable strategy.

Source: IBEF & KPMG Report

 Overview Of Pre-Schools
Preschool education in India has gained immense importance over the past five years
due to increased awareness and affordability among parents.

 Playschools & Pre-schools, traditionally cater to 1.5-3 year age group. This has been
extended to KG 1 & KG 2 to include kids from 3.5 to 5.5 yrs of age.

 With low entry barriers, corporate activity has

gathered pace and various major chains & few
smaller players are active in the space. Corporate
are forming Joint Ventures with builders/partners
and moving up value chain by upgrading to K12
schools.

 Pre-Schools are looking at revenue

enhancement through geographic expansion and
scaling up to K-12 delivery, while partnering with
large investors for infrastructure support.
 Scope of Growth
The pre-school industry has immense scope of growth in India as there are not many
proper facilities and amenities for children to have a holistic growth as attained by
children in developed countries.
The market continues to expand due to the following parameters.
Joint ventures with Expansion to Tier I &II
Entry of Big Corporate Upgrade to K-12
Builders Cities
Many corporate houses Increasingly preschools Preschool chains are Demand &
have/are planning to are forming joint moving up the value affordability is
set up their own chain ventures with builders. chain by upgrading to K- increasing in small
of pre-schools. Partnering with builders 12 schools to ensure towns with the
Preschools are viewed help in imparting scalability for preschool growing awareness
as attractive flexibility in the business firms. among the people
investment against high lease Kidzee, Euro Kids and about the need to
opportunities due to rentals. AF7 group and Kangaroo Kids are send children to
the growth potential. Mother’s pride entered upgrading to K-12 preschools.
into a JV for preschools. schools.
 Scope Of Growth
Pre-school segment in India was expected to grow from USD 0.75 billion in 2011 to
USD3.24 billion in 2017 at a CAGR of 23%. In the year 2015 the Pre-school segment
was worth USD 2.21 Billion.
Preschool Market Size FY2017(E) FY20(P)

With growing awareness among tier 2 and Population –mn 1,266.9 1,326.1
tier 3 cities, the worldwide market for India
Preschool or Child Care Market is expected to Target Population (0-4 years of 117.2 116.5
age) - mn
grow at a CAGR of roughly 31.8% over the
next four years till 2021.
Target Population as % of total 9.2 8.8
population
The industry is dominated by the
unorganized sector (small,
Net Enrolment Ratio 2.5 3.5
neighbourhood schools), which accounts
for over 80% of the market Enrolled population mn' 2.9 4.1

Total Market Size - Rs. bn' 130 225

Source: US Census Bureau, Industry, CARE Ratings , Technavio

 Pre-School Market Share
Despite the increasing share of organized segment the preschool market remains
highly fragmented and regional in nature.

 The revenue of pre-schools are expected to

reach US$ 350 billion from a current value
of US$ 250 billion BY 2022 and it is
estimated that more than 21000
franchisee establishments may be required
by 2020 alone to meet the growing
demand for pre-schools

 The top five players in the Indian markets

are Kidzee, Eurokids, Applekids, Shemrock, PRESCHOOL GROWTH: FY2012 – FY2022
Kangaroo Kids and Treehouse

The average revenue earned by organized players ranges from INR 34-INR 45 Lakhs per
centre per annum for mediocre schools whereas it is INR 14- INR 20 Lakh for unorganized
market players. By CY’22 this is expected to rise with increase in number of enrolments and
expanding marketing channels
1 Source: kenresearch
 Pre-School Growth Drivers
The following are the growth drivers of pre-school industry.

Demand of
Growing
Rising Income High Quality
Middle Class
Levels Education for
Population
Toddlers

Rise of Education is
Nuclear the 2nd biggest
Rapid
Families & Major Growth Drivers
Urbanization Working Investment for
Couples a Parent

Easy to Set-up Rising

and Operate awareness for
No economic
with Modest Holistic
downturns
Investment Growth of the
and Quick ROI Child
Positioning in the Pre-School Industry
Destination
Mom & Pop
Pre-schools
1999 Pre-school
With K12
We saw typical mom & pop schools or Integrated schools where Nursery / KG were merged with K12

Destination
Mom & Pop Branded
Pre-schools
2005 Pre-school Pre-schools
With K12
Then we saw the advent of branded pre-schools like Eurokids & Kidzee who captured student from mom & pop school
For better learning & experience; Parents also graduated from 12000pa to 18000 pa fee structure

Destination
Mom & Pop Branded Premium
2010 Pre-school Pre-schools Pre-School
Pre-schools
With K12
Then we saw, A premium range of pre-school came, which were taken as a niche segment
But with higher disposable income & subtle difference in learning approach, it got share in the market

Destination
Mom & Pop Branded Premium
Pre-schools
2016 Pre-school Pre-schools Pre-School
With K12
Branded preschools have captured the share of Mom & pops, Eurokids & Kidzee have already penetrated into T2
& T3 cities; while we see a shift in consumer base from branded to Premium pre-school
At the same time, we see Large K12 developing chain of pre-schools or established Pre-schools entering K12
business
Mom Destination
Branded Premium
& Pre-schools
2020 Pop
Pre-schools Pre-School
With K12
By 2020, we expect a shift towards integration of chain of school, Pre-school – K12 – Graduation college
Cost of acquiring a student is lowered; Schools which do not have capacity to setup the chain would tie-up with partners
 Key Parameters :
Parents Filtering Pre-Schools
Adequate space

Number of children/
room Teacher training

Pre-School &
Teacher/child ratio Teacher turnover
Parent

Structure of the
Accreditation
program

Individual Attention
 Key Parameters :
Parents Filtering Pre-Schools
Adequate space Sq Ft space per child indoors and Sq Ft space outside (open play area)

Structure of the All children need some structure, a good pre-school program will include enough time
program each day for exploration, free play, and peer interaction

Preferable that teachers have at least an associate's degree in primary teaching/

Teacher training nursery teaching. The trend is more focused on the past experience

Teacher/child ratio 1:5 for infants, 1:10 for three- to five-year-olds, 1:15 for kindergartners

Though there are no specific requirements, the organization tries to make sure its
Teacher turnover schools do better than the national average turnover rate of 40%.

The certification is not mandatory for pre-schools, it does represent a reference point,
Accreditation a sort of Good Housekeeping Seal of Approval

Child may benefit from having a one-on-one aide, whether for physical or medical help
Individual Attention or to handle behavioural difficulties.

Number of children/
No more than 8 infants or 20 pre-scholar
Room
Investors Key Issues in Pre-Schools
The following are the key issues faced by the investors in the pre-school business.

Limit To Lever
The certification is not mandatory for pre-schools, it does represent a
Infrastructure For Pre- reference point, a sort of Good Housekeeping Seal of Approval
school Children

The segment caters only to customers who can afford annual fees of Rs 30,000-
Higher Fee Structure 50,000, which further limits the scope of the market

With awareness levels still low, the unorganized market provides ‘the same’ care
The Unorganized but at a much lower price. With more than 80% of the target market still with
Neighbor the ‘trustworthy’ neighbour, it may take some time before organized players are
able to establish the importance of a quality pre-school education
Investors Key Issues in Pre-Schools
The following are the key issues faced by the investors in the pre-school business.

A Non-regulated The pre-school market is non-regulated and hence entails no regulatory

Market – Low Entry barriers for new entrants. Given the relatively low investment required,
Barriers competition is intensifying in this segment

Pre-schools are currently being run primarily on the franchisee model,

Economics Of A Pre- which has so far evolved largely on the back of two factors – low cost of
school setting up a franchisee, and housewife occupation that typically does not
consider the opportunity cost of lease rentals

Pre-schools which have adopted a separate centre setup have struggled with
Under Utilized under utilized capacity & thus to support the rental values; they need some
Capacities additional program from afternoon to evening in order to secure additional
revenues at limited expense
 Challenges – For Pre-Schools
The following are the key challenges faced by the pre-school.

Space Utilization at
No informal Tie up
Least for 12 hours in a
with Schools
Day

No Differentiating No Control on Service

Brand USP Delivered
Regulatory Framework : Pre-Schools
Currently, there are no regulatory framework for pre-schools.

Factor Current Status

Regulatory Body None
Profit Making Pre-schools may be run as ‘for-profit’
institutions
Affiliation/accreditation None
Curriculum No standard curriculum
• Company owned
• Franchise
Typical operating models • Takeover of existing pre-school
• Joint venture with real estate developer
100% permitted through the automatic
Foreign investment approval route
Preparation for K12 school
 Competition Landscape
The competition landscape for the brand is a little tough in current market scenario

• HIGH
• LOW • High capital
• Many Suppliers Investment and
• Low Switching cost niche skill set is
required

Bargaining
Barriers to • HIGH
Power of
Entry • Brand will face high competition
Suppliers from other operational brand as
Competition already the existing brands are
operating at full potential and
growing aggressively

Threats of
Substitute • High
• HIGH • Large number of
• Many homemakers
players in the
take up the
market, gives the
challenge of
buyer advantage of
educating the child
selecting as per his
till age of 5
wish
 Key Players - Indian Market
Players History Status Current Network Business
Model Key strengths
Ready access
Part of Zee 990-pan India. to KIDZEE High
group. Franchisee –9
Started in 2003 Plans 500 in the
KIDZEE Listed under model
next two yrs operational, 23
ETCN
signed up
1997 – JV between
Indian Express and
Egmont; 2001 –
50%
Egmont Private 880-pan
publishing,
International (50% stake India. Plans
Holdings, to have 50% Plans to have
EURO KIDS acquired
Preschools K12 schools
Denmark bought back by 120+ schools in
Educomp) (Franchise
shares of Indian Express next 2 yrs
e model)
in JV; Egmont exited Euro
Kids, now an Indian
private co.
India's ISO 9001:2000
Certified chain of Hi- 200 - primarily Franchisee Largest in
APPLE KIDS Private
tech International in South India model south India.
Standard Pre- School.
24+ Branches Largest self
India’s 1st pre-school
in Hyderabad Franchise network of pre-
SUNSHINE and daycare chain SatNav Group
and Model school and
leader since 2004.
Secunderabad daycare centres'.
 Key Players - Indian Market
Players History Status Current Network Business Key strengths
Model
JV model.
Niche player Strong brand in western
Kangaroo Kids expanding to a urban areas. Opting for a mix
Education 80 + expanding basic model of pure franchisee and JV
KANGAROO Limited Private pan India, 150+ through model for better economics,
KIDS started in more in 2 years 'Brainworks' quality control & lower
1993 and mall attrition. Ready to access
schools through Billabong High schools.
Kangaplay
410+ primarily High operating margins due
in to accounting for nominal
Primarily
TREEHOUSE Started in 2003 - Maharashtra lease (promoter owns
owned Model
property) & ability to
175 + by 2015 compete on a price war.

ROOTS TO Started in June Plans to target 8am to 8pm - includes day

Listed company Franchisee model
WINGS 2008 240+ care

Part of Podar Popular in Maharashtra &

JUMBO KIDS Private 160+ pan India Franchisee model
Group Karnataka
 Key Players : Other Attributes
Brand Tuition Fee (INR) Batch Size Teacher To Type Of Program
(No's.) Student Ratio

Kidzee 30,000-32000 20 1:10 Pre-school

Eurokids 30,000-35,000 15 1:10 Pre-school

Kangaroo Activity based

Kids 60,000-65,000 18-20 1:9 learning

Mother’s Activity based

Pride 40,000-45,000 16 1:8 learning

Activity based
Serra Kids 60,000-65,000 15-18 1:10 learning
3. Competitor Analysis
 Kangaroo Kids
 Oi Play school
 Serra International School
 Mother’s Pride
 KIDZEE
 My School Italy
Kangaroo Kids – About the Pre-School
Particulars Description

School Name • Kangaroo Kids Education limited

Corporate 301 Mamta House, 231 S V Road, Bandra (W), Mumbai

•
Office

• Kangaroo Kids Education Limited (KKEL) is a company committed to pioneering the

About the paradigm shift in Indian education. Led by Lina Ashar, the visionary educationist, KKEL
School instills a lifelong love for learning in its students. It rejects the idea that a uniform learning
experience is good enough for all children.

• Lina Ashar, is a global pioneer in children’s education. Propelled by her vision, Kangaroo
About the Kids Education Ltd (KKEL) has become a leading education chain that is changing the way
Chairman kids learn by introducing innovative learning strategies, fun-filled activities and an
engaging curriculum.

Category • Daycare, playschools, Nursery, Junior KG & Senior KG

• The school has 75+ branches all over India and 5 international branches in Dubai,
Qatar and Maldives
Presence • Group’s Presence: Today, KKEL supports 100 schools in India that are operating in 1 30
cities and has an international presence in Dubai, Maldives & Qatar and is still growing
rapidly
 Kangaroo Kids
Particulars Description

• At KKEL the focus is on customizing learning, keeping in mind that each child is unique and learns
differently. It imparts a holistic education based on a path breaking mode.
About • Kangaroo Kids Preschools revolve around action-based learning using innovative teaching methods.
Kangaroo • The first to introduce a learner centric methodology and introduce innovative ways of learning by
providing an integrated activity and theme based learning. While other institutes have adopted
Kids activity-based learning as a standalone concept, they have failed to imbibe the basic premise of
such a model – to demonstrate practical application of knowledge and for more effective
assimilation of knowledge.

• “KKEL is an innovative, vibrant, creative and energetic organization where each one of us strives
Vision through our practice to wholeheartedly serve children and make every learning moment a joyful,
effective and meaningful one.”

• Optimum student teacher ratio, First and only teacher training institute (KITDR) in the country
USP imbibing the principles of Andragogy - learning strategies focused on adults. In house R &D team,
Learner Centric, Inclusion policy

• Action based learning, Brain research, Multiple intelligence, Theme based learning
Activities • Bloom’s taxonomy

• The first and only institute to develop a 360 degree delivery model of curriculum, infrastructure,
teaching methodology, operational processes, policies and quality benchmarking from the learner’s
Facilities point of view.
• Sports club, Parent- Children interaction
 Kangaroo Kids
Particulars Description
Area required • 3000-5000 sq. ft.
Investment range • INR 30-35 lakhs on interiors & equipment for 5000 sq. ft. property

Franchise fee • INR 10 lakhs

• Premium Residential location (ground floor preferred). Bungalow or Villa with at ground
Preferred location floor with separate boundary wall along with outdoor play area is preferred
Business model • Franchise Owned Franchise Operated Model
Royalty • 15% of gross sales

Average enrolment INR 50,000-60,000 (At some locations it is INR 80,000 too)
•
fees
• For 5000 sq. ft. property there will be 10 classes with a capacity of 25 children
Expected revenue • Works on 2 shift, so on a conservative side a revenue from 400 children which is approx.
INR 2-2.4 crore

Expected payback • Within 1 year

Agreement period • 5 years

• Complete consultative support on Preschool set up and designs, toys and teaching aids
procurement, marketing and branding campaigns, curriculum implementation and
Franchisor Support teaching methodology, recruitment of key staff, training of principles/counsellors/teachers
and any other day-to-day operations related consultation.
 Oi Play School – About the Pre-School
Particulars Description
Pre-School Name • Oi play school

Company Name • People Combine Play School Initiatives Pvt. Ltd.

• People Combine Play School Initiatives Pvt. Ltd., # 8 - 2 - 293/82/ F 11/B/18,
Corporate Office Road No 86, Film Nagar, Jubilee Hills, Hyderabad - 500 033, Telangana, India.

• Oi Play School is an educational initiative of People Combine, a group that has

pioneered & redefined the way education has been perceived in India. We are the
creators of Oakridge International School – the first IB World School of Andhra
Pradesh.
• Claims it to be the most admired pre school of Hyderabad.
• Oi Play School has received the "Most promising Play School Brand in South India"
About the School award. Oi is now a member of Early Childhood Association.
• Oi introduced Art O Mania for the 3-8 Year old.
• With years of extensive & dedicated research, developed by the leading experts &
visionaries in the Early Childhood Care & Education, the Oi curriculum has
benchmarked its existence & has proven to be one of the most child centric learning
approaches in the education space, as per their claim.

• People combine has strong presence in education, consulting, Infrastructural &

About the Company hospitality segment.

Presence • 50+ branches in Andhra Pradesh, Karnataka and Maharashtra

 Oi Play School
Particulars Description
Vision • Success for every Oak Ridge student.

• Oakridge Schools will ensure success for every student through high quality standards-
Mission based curriculum, highly effective instruction, balanced and reliable measurement, and
targeted responses to learning.

Services/ Program • Toddler program, Nursery, Pre primary 1, Pre primary 2, OI child care

• OI comes from the house of Oakridge, one of the leading International Schools in the
country and Asia.
• The Curriculum is patented to ensure the holistic development of the child.
• Extensive Parent interaction and involvement, thus, making Parents as effective Partners.
USP • OI offers full support to all its centers in all manners possible.
• OI enjoys a Happy and Loyal Parents’ base.
• OI has a wide footprint.
• Best Adult – Student ratio in the Industry, viz. 1:8.
• The students from OI are given priority window to Oakridge International Schools.

Activities • Skillfully mapped & specialized play & learning equipments to match with curriculum.

• Aesthetically designed child space. Child appropriate teaching & learning aids.
• Slide, Swings, Trampoline, Balancing Beams, Swing Riders, See – Saws, Rope Ladder,
Facilities Splash Pool, Sand Pit, Soccer Field, Basket Ball Court, Doll House, Theatre Room (TV and
Music System), Tree House, Amphitheatre, Vegetable Garden, Reading Library, Science
Lab, Story Corner & Art Corner.
 Oi Play School
Particulars Description
Area required • 2500-3000 sq. ft. (Carpet area)
Investment range • INR 12-15 lakhs
Franchise fee • INR 2.5 lakhs

Preferred location • Residential Location

Business model • Franchise Owned Franchise Operated Model

Royalty • INR 4500 per student annually is paid to Oi play school (Out of INR 25,000 fee)
Enrolment fees & Revenue • INR 25,000-INR 35,000/month with a revenue of INR 1-2lakhs/month
Expected payback • 1 year
Agreement period • 6 years

• Curriculum based on best practices of reputed international schools

• Three level "Teacher Elevate" training program to ensure effective teaching and
learning. Help and support in effective implementation and management of
curriculum. Superior support on infrastructure, learning resources and center
Franchisor Support management
• Support for marketing and student acquisition, Marketing Support to trigger the
admissions, Recruitment of teachers, Competition & Shows are organized at the
Centre
 Serra International School
Particulars Description
School Name • Serra International School

• Edvance Pre-Schools Pvt. Ltd., 606, Prathamesh Tower, 'B' Wing, Raghuvanshi Mills
Head Office Compound, (Above Hyundai Showroom), Next to Phoenix Mills, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013

About • Serra International provides quality early childhood education across the country with
Serra children getting access to an international curriculum and highly skilled educators.
• In association with their international partner, Eton House International Education Group -
Intern Singapore, they claim to be the first international joint venture group to enter the field of
ational early childhood education in India.

• Presently the school chain is present at 42+ locations in major metropolitan cities
such as Delhi, Gurgaon, Mumbai, Bengaluru, Chennai, Ahmedabad,Pune, Hyderabad,
Presence Jaipur, Indore and Aurangabad and looking to expand its footprint in other cities pan India.
“We shall be setting up 100 pre-schools in the next three years across India,” says Ranjan
Goyal, CEO of SERRA

• SERRA International is committed to creating responsible global citizens and

Vision brilliant leaders of tomorrow by laying a superior foundation through quality early
childhood education.

• Encouraging children to become passionate, lifelong learners and confident global

citizens. Developing a research-based curriculum focused on pedagogical integrity
Mission • Meeting every individual learner's potential. Fostering a genuine and dependable
relationship with families, Staff, our business partners and the community at large.
 Serra International School
Particulars Description

Services/ Program • Preschool, Nursery, Kindergarten

• Inquiry based learning.

Claimed USP • Reggio Emilia educational approach of northern Italy.
• Committed to the pedagogy of listening.

• Personal, social and emotional development

• Language and literacy knowledge
• Mathematical understanding
Areas of Learning • Knowledge and understanding of the world
• Physical development
• Creative development

• Play is the central mode of learning for young children

• Acknowledge children as sophisticated thinkers and communicators
• Have accountability to children, parents, management and community
Facilities • Create alliances with parents
• Program has intellectual and pedagogical integrity
• Focus on seeing children within a socio-cultural context
• Teachers as researchers
 Serra International School
Particulars Description

Area required • 2000 sq. ft. (Carpet area)

Investment range • INR 18-20 lakhs

Franchise fee • INR 3-6 lakhs (depending on the location)

Preferred location • Residential plot

Business model • FOFO ( franchise owned franchise operated)

Royalty • 18% of gross sales

• Pre-school: INR 60,000; Child Care: INR 70,000

Average enrolment fees • Mother Toddler (3 months program): INR 6,000; Camps (3 months): INR 2,000

Expected revenue • INR 4-5 lakhs per month

Expected payback • 1.5-2 years

Agreement period • 5 years

Mother’s Pride – About the Pre-School
Particulars Description

School Name • Mother’s Pride

Corporate Office • 11/77 Punjabi Bagh, New Delhi 110026

• The journey of Mother’s Pride began in 1996 with its first branch at Paschim Vihar. A
About the School spacious colorful school with a scientifically planned curriculum and computers
opened eyes of the parents to a new way of bringing up children.

• Mother’s pride is the brainchild of renowned educationalist and parenting expert,

Mrs. Sudha Gupta. Her visionary ideas and positive attitude has changed the
About the Chairman perspective of teachers and parents towards children. She has written several books
on parenting and is a famous colonist of leading news papers and magazines.

• Only preschool with research & development department as per the claim
• Claims to be the First preschool which actually provides ample space to stimulate
About Mother’s pride overall development of tiny tots.
• It has teacher student ratio of 1:10 so as to give ample attention with love and
affection to each children.

Category • Kindergarten, crèche, day care and preschools

• The school has 50+ branches.

Presence • It has branches in Agra, Kanpur, Amritsar, Ludhiana, Kolkata and Chandan nagar
 Mother’s Pride
Particulars Description

• Transformation of the Education system

• Transformation of Parenting
Mission • Transformation in the role and status of teachers
• Transformation of the society

• To instill life long values that nurture humanity. Create global citizens and give shape
Vision to a better world.

• Adidas, Accenture, Yamaha, Honda, Hp, CNBC, Coke, Colt, Dell, Domino’s pizza, HDFC
bank, IBM, Kingfisher, Fidelity, Genpact, Moserbaer, Hewitt, Hero Honda, ICICI
Corporate tie ups prudential, ITC, Indigo, India bulls, Motorola, Nokia, Nestle, Reliance and many more.
• It has tie up with 477 leading companies.

• Scientifically planned curriculum

• Only preschool with R & D department.
Claimed USP • Special classes on parenting
• Rigorously trained and educated faculty.
• Child development centre for complete care and overall growth of child.

• Skating, Taek-won-do, Dramatization & Role play, Educational trips, Picnic & Excursions,
Activities Presentations, Competitions, stage exposure, nature walk

• Galaxy, Creativity centre, Science Corner, Audio Visual Room, Doll House, Skating Rink,
Facilities Auditorium, Splash pool, Settling zone
 Mother’s Pride
Particulars Description
• At least 2500-4000 sq. ft. carpet area.
Area required • For Mother’s Pride bigger model area requirement is 10,000-30,000 sq. ft.

Investment range • 50 lakhs – 1 Crore

Franchise fee • INR 15-20 lakhs

• Residential plot (basement + ground floor)

Preferred location • Nursery, Crèche plot, Play school property

• FOCO (franchise owned company operated)

• Brand will be running the play-school & franchisee will get a revenue share
Business model • All operational expenses including rental, manpower cost etc. will be borne by
Franchisor

Ongoing revenue • 20% of gross sales will be paid to the franchisee as a revenue share

Average enrolment fees • INR 55 - 60 thousand

Expected revenue • 200 - 250 students enrolment per year.

Expected payback • 2.5 - 3 years

Agreement period • 5 years

 KIDZEE
Particular Description

• Asia's largest chain of preschools and a part of Zee Learn Ltd. has enjoyed tremendous success
since its inception by providing children with child-friendly curriculum and a child safe learning
About environment which helps them in early childhood development and to grow as an individual.
• A pioneer in ECCE (Early Childhood Care and Education), They are the largest preschool chain in
KIDZEE Asia.
• Having touched the lives of more than 4,00,000 children in India, Kidzee, a decade on, remains
focused on nurturing the unique potential in every child.

• The goal is to respond to the call of creating the emerging leaders of tomorrow. We are
Vision committed to impacting a synergy of skills, knowledge, and values in our children to lend them
their inner voice for the 21st century͛.
• KIDZEE believes that every child is unique with infinite potential. This is why its main focus is to
USP provide children with child-friendly curriculum and a child-safe learning environment

• Winner of Best Content and Delivery Advertisement, Indian Education Congress in 2011
Awards and • Winner of Franchise of the Year award in 2010
• Winner of Franchising World Best Franchisor in Education award in 2009
Recognition • Winner of Franchising World Best Franchisor in Pre-school education award in 2007, 2006, 2005,
2004

Program • Play Group, Nursery, Kindergarten

• With an incredible network of more than 1500+ centres in over 550+ cities, we are committed
Presence to spearheading child development across the nation.
 KIDZEE
Particulars Description
Area required • Should have minimum 2000 – 3000 sq. ft. carpet area in a residential location in the city.
• INR 12-15 lakhs The initial investment would be towards ambience and equipment costs
Investment range and would include the start up franchisee.
Franchise fee • INR 50,000-100,000, an be higher as per depend upon the location to location
• Preferably independent villa or bungalow (On ground floor) with separate boundary wall
Preferred location along with outdoor play area
Business model • Franchise Owned Franchise Operated Model

Ongoing revenue • 15-18% of gross sales

Average enrolment INR 28,000-35,000 (At some locations it is INR 80,000 too)
•
fees
Expected payback • 2.1 years
Agreement period • 6 years
• Proven business model that has delivered a robust ROI for our Franchisee.
• Supports in enrolments via marketing
• Provides time tested books, publications and other learning resources
Franchise Support Assistance in developing infrastructure and designing interiors
•
• Continuous updates on current educational developments
• Dedicated key accounts manager at your disposal to get resolution for all your queries
My School Italy – About the Pre-School
Particular Description

• The Company named ‘My School Italy Kindergarten’ started in 2010 as a language school.
Started kindergarten business in 2011. Set up first franchise in India in 2015 in Nizamabad,
Telangana.
About MY • The school has developed an effective teaching tool “MSIK Decant”, teaches children
School Italy languages, writing, rhymes, science, social science, moral science, mathematics, drawing, art
Kindergarten and craft in a way that they learn various subjects without realizing the fact that X concept
belongs to Y subject. MSIK Decant even helps in cognitive development of children during
early education and it has strong impact on the attendance and participation of children once
they enter primary school.

• The goal is to respond to the call of creating the emerging leaders of tomorrow. We are
Vision committed to impacting a synergy of skills, knowledge, and values in our children to lend
them their inner voice for the 21st century͛.

• To achieve excellence in all the eight levels established by Council of Europe, from level A1
(Starter) to level C2 (Proficiency).
USP • To provide a progressive teachers’ support system to the students for quality education.
• To provide academic, cultural, social, moral and psychological guidance support.

Program • Play Group, Nursery, Kindergarten

• My School Italy kindergarten is operational in Italy, Orissa and Telangana, India as a franchised
Presence centre
 My School Italy
Particulars Description
Area required • Should have minimum 1200 – 3000 sq. ft. carpet area in a residential location in the city.
• INR 15-18 lakhs The initial investment would be towards ambience and equipment costs
Investment range and would include the start up franchisee.
Franchise fee • INR 3,00,000 an be higher as per depend upon the location to location
• Preferably independent villa or bungalow (On ground floor) with separate boundary wall
Preferred location along with outdoor play area
Business model • Franchise Owned Franchise Operated Model

Ongoing revenue • 12-15% of gross sales

Average enrolment INR 30,000-35,000
•
fees
Expected payback • 13 months
Agreement period • 5 years

• Provision of all administrative forms and formats

• Provision of all forms, formats, Cash Sheets, Stock Sheets, Monthly report sheets etc.
• Assistance in setting up the schools and overseeing the setup, visiting fees will be
chargeable & Provision of informative material, presentations
Franchise Support
• Assistance in organizing of local promotional activities and events
• My School Italy will continuously assist in monitoring and managing the Franchisee
pre-schools to make sure that the best business practices get implemented at the
franchisee end to run it on profit.
4. Feasibility Analysis & Opportunity
Assessment
 Franchise Readiness and Feasibility Analysis
 Opportunity Assessment
 Competition Mapping and Target Positioning
 Opportunity Window
 Key Success Factors
 Franchising
• An arrangement whereby a trademark owner allows the use of his
trademark along with a standardized manner of presenting the goods
What is Franchising and services under the mark.
• In exchange, the franchisee provides capital and also pays certain
royalty for the use of the mark.
• Reach: These centers are region specific and can cater to a limited
number of children in their region.
Learning Centers • Customers prefer centers at a convenient location. The market is
fragmented by unorganized players in every region

• The solution in such cases is to have “branch” centers - either company

The Solution owned or Franchise

• This appears to be the economically beneficial and easiest manner of

doing so, while also ensuring that the branch continues to provide the
Why Franchising? same quality of services as is associated with the name of the play
center
• Franchise agreement defines exactly how the franchisor expects the
Terms & center to be run, in terms of training design, set up and functioning of
the center administration, day-to-day operations of the center, the
Conditions manner of conducting development of policies, so as to keep up their
reputation for which they are well-known.

• The continuing control by the franchisor over the way a franchisee

Franchisor Control operates is the distinguishing feature of a franchising agreement from
a licensing agreement.
 Franchise Feasibility Analysis (1/4)
Element Sub Component Description Weightage Score Status

Brand is well known in Hyderabad.

Brand name Outside Hyderabad awareness to be 40% (2) 0.5
created
Credibility Product/Service defect rates High Quality Perception 40% (2) 1.5

Trustworthiness/Expertise Trusted brand in Hyderabad 20% (1) 0.5

Total Credibility Score 2.5/5

Existing structure & layouts Three outlets 20% (1) 1

Roles and responsibilities are defined

Organization structure 20% (1) 1
Prototype clearly
Operations
Vendor management Proper Vendor Management 20% (1) 1

Financial performance Outlets are profitable 40% (2) 1.5

Total Prototype Operations Score 4.5/5

Overall market growth Pre-school market is poised for 20% (1) 1
growth

Market Trends & Competition Lot of competitions at local and 40% (2) 0.5
national level for pre-schools
Conditions
Relevance in future Market for products to stay relevant 40% (2) 1.5
in the near future

Total Market Trends & Conditions Score 3/5

<=50% 51-70% 71-100%

 Franchise Feasibility Analysis (2/4)
Element Sub Component Description Weightage Score Status

The STEAM curriculum is a unique

Product 40% (2) 1.5
product in the market
Target markets The upper/middle class families 20% (1) 1
Differentiation
Online presence limited. Mostly through
Marketing strategy word of mouth & Collaboration with 40% (2) 1
townships
Total Differentiation Score 3.5/5
SOP and Process
Proper documentation & SOP 20% (1) 1
Documentation
Visual Charts and Process
Very clear directions and processes 20% (1) 1
Documented Maps
Systems JD and KRA documents Clearly defined roles 20% (1) 1
Operations Manuals Easy operations if trained properly 20% (1) 0.5
Audits Regular Audits 20% (1) 1
Total Documented Systems Score 4.5/5
Marketing, training and talent
Brand building under progress 40% (2) 1
acquisition support funds
Funds for expansion needs to be planned
Franchise development funds 20% (1) 0.5
as per market
Capital
While the company handles the overall
brand building, essential to include
Overall brand building funds 40% (2) 1
franchisee for local marketing

Total Capital Score 2.5/5

<=50% 51-70% 71-100%

 Franchise Feasibility Analysis (3/4)
Element Sub Component Description Weightage Score Status

Facilities and personnel in place.

Resources to train franchisees 40% (2) 1
Manuals need to be prepared

Transferability of Ease of training how to perform

Easy operations. Require training 40% (2) 1.5
Knowledge daily business

Level of knowledge/experience
Easy to learn operations 20% (1) 1
required in franchisee/investor

Total Knowledge Transferability Score 3.5/5

Investment required is not very
Initial investment required 40% (2) 1
high
Talent acquisition costs Not high talent acquisition cost 20% (1) 1
Affordability
Manageable working capital
Working capital requirements 20% (1) 1
required
Initial marketing costs May require high marketing cost 20% (1) 0.5

Total Affordability Score 3.5/5

Involvement of Management in
Management new to franchising 20% (1) 0.5
franchising

Commitment To Support required in terms of

Motivation to franchisee 40% (2) 1
Relationships training & transfer of knowledge

This needs to be induced into the

Change management 40% (2) 1
processes specifically
Total Commitment To Relationships Score 2.5/5

<=50% 51-70% 71-100%

Franchise Feasibility Analysis (4/4)
Element Sub Component Description Weightage Score Status

Operations can be replicated if

Flexible systems 40% (2) 1.5
trained properly
Adaptability
Acceptance of products/services Adaptable in major cities 60% (3) 1.5

Total Adaptability Score 3/5

Profitability Outlet is profitable 40% (2) 1.5

Return on Break even can be achieved in

Break even 40% (2) 2
Investment less than 3 years
Payback period: Could be
Pay back period 20% (1) 1
achieved in less than 3 years

Total Return on Investment Score 4.5/5

Management experienced in
Multi unit operations management 20% (1) 1
handling diverse businesses

Strength of Franchise marketing and lead

Not into franchising yet 40% (2) 1
Management handling

Credibility and ability to attract Reputed business however, brand

40% (2) 1
investors can be developed further

Total Strength of Management Score 3/5

Not Franchisable <15

Total Feasibility Analysis Score for TWEETY KIDS
Moderately Franchisable 15-35
INTERNATIONAL: 40.5/60 Definitely Franchisable >35
 SWOT Analysis
Strength
• STEAM based curriculum
•Professionally experienced
qualified and committed
Teachers
• International standard at
affordable pricing
• Theme based teaching
• Good teacher to child ratio
Opportunity
• Demand for English learning
is growing in India
• Very few organized players
in the segment
• Demand for one to one
attention is increasing in
Metros, Tier I and Tier II cities
Weakness
• Brand awareness is nascent
• Space constraint
• Playground Area (Only Park)
• Recruiting qualified teachers
• Location specificity
• Low on Marketing and Brand
Promotions
Threat
• Aggressive expansion plans
of existing national players
• Local teachers and English
spoken centres
• Existing Players Sponsored
through FDI
 Opportunity Assessment
FRANCHISOR
Franchising
TWEETY KIDS
• Independent business owners to be part of a network
INTERNATIONAL By Franchising TWEETY
KIDS INTERNATIONAL • Structured approach for executing the business. While the business
 Strategy can focus more on the owner can focus on mapping out the larger activities. The franchisee
 Leadership core values of Business can control the last leg service.
 R&D/ New • Many use it as a tool for capital investment. Brands such as TWEETY
launches
 Roll out KIDS INTERNATIONAL would prefer franchising for the local
 “On the job operational expertise it brings in the format.
Role”
 Marketing & brand Structure
building
• Companies can look for giving larger territories. However, master/
Enabler
area franchising is most prevalent in International brands.
• Unit franchisee options are the most sought after franchise
opportunity for the domestic expansion plans.

Competitive Advantage of Franchising

centre Level business

The Franchisee can

Learning centre to
management

“On the job

look more into the

Customer

Role”
management

operational aspect • Independent business owner/operators

of business • A greater level of commitment and accountability than employees.
• Simplest way to raising funds (w/o parting ways with equity)

FRANCHISEE
 Opportunity Assessment
The investment and the risk in
setting up a learning Centre is Raise Capital
not a huge challenge for the
company.

However, TWEETY KIDS Risk

Mitigation
Operational
Excellence
INTERNATIONAL should
consider franchising to focus
on the development of an
International level robust
STEAM curriculum, deeper
penetration in the market and Management
Deeper
focus on Core
increased brand awareness competencies
Penetration

and obtaining high

operational excellence.
 Opportunity Assessment
Market Penetration
Through more touch points (reachability/ Product/Service
Diversification
approachability) of centre’s its easier to penetrate
the market.
Economies of
Scale
Brand recognition
Would help in brand recall and brand building Brand
recognition
in smaller cities

Economies of scale
Market
Economies of scale would ensure better sourcing Penetratio
strategies and better utilization of back end man n

power
Franchising
Diversification
Diversification of products competencies to include  Franchising would help penetrating the market by
other products categories like Toys and other outsourcing non core functions, building the brand,
generating revenues and building economies of scale.
activity products in the near future
 Competition Mapping and Target
Positioning
High Kangaroo Kids
My School Italy Pre PREMIUM PRE-SCHOOL
Mother’s Pride School  Advanced curriculum
 Limited competition presence
Target customer

 Top end of the pre-schooling spectrum

Kidzee Brainworks
Medium  Target a limited no. of students with high Fee
 Overall personality development is the key
 This segment is expanding
Eurokids

Tree house
Low BRANDED PRE-SCHOOLS
 Most crowded segment from competition point of
view
 Strong presence of branded players
Low Medium High  Limited differentiation opportunity
 Similar infrastructure & curriculum which is more
Fee structure teacher driven
 Few local players who have gained significant
ENTRY LEVEL PRE-SCHOOLS importance with time are also active
 This is at the bottom of the pre-school spectrum  This segment is also expanding but moving
 Ideally filling up the demand at the bottom of the pyramid  downwards on customer profile
 Basic infrastructure & elementary curriculum with minimal fee
structures
 Dominated by local players which are non branded
 Stagnant & also moving down on customer profile
 Key Differentiations Points –
TWEETY KIDS INTERNATIONAL
The curriculum developed is rigorously of International standards. The USP of
Content this curriculum is it’s STEAM based model. This helps build fine 5 motor skills and
gives a holistic child care spectrum.

This defines the target customer base for a brand; more than regular fee (i.e.
Fee structure 30,000 pa) would mean we target a large yet exclusive customer base.

Highly Trained Teachers with at least an associate's degree in early childhood

Trained Teachers education are preferred employees

Capacity of each
Capacity of each class is optimal with 1:6 teacher to child ratio. Adequate space
Classroom & for the child is provided.
Adequate Space

Location of the
Ideally the location of the learning centre are 1.5 km radius of the target group
Learning Center

Structure of the All children need some structure, a good preschool program will include enough
program time each day for exploration, free play, and peer interaction etc.
 Positioning of the Brand
High Kangaroo
kids  Price Positioning: At par with competing
Mothers' Pride

TWEETY KIDS brands like My School Italy Kindergarten and

INTERNATIONAL
(Desired Positioning) KIDZEE
Medium Kidzee, Euro kids
 The management should introduce few critical
Price Positioning

things in the business model for proposed

Other
unorganized
positioning
Low
players
 High teacher student ratio
 Value for money
Low Medium High  High brand image so services
offered
Experience
must be positioned better than
others
Extra edge required for positioning:
 Enriching
 The Brand will have to focus on highlighting experience through various tools such asexperience
Infrastructure/
curriculum/ extra curricular activities so that parents prefer TWEETY KIDS INTERNATIONAL brand than the other
branded players

 TWEETY KIDS INTERNATIONAL has created a well crafted holistic curriculum and USP such as International
standards STEAM curriculum, to place itself with well established pre-schools of the same league
 Market Window
This is the ideal time to implement the strategy of licensing the brand and grow
aggressively in opening learning centers. Communicating the right communication to
right target group is the key for future.
Target for the brand is to
capture that part of the
market which is willing to
shell out 30,000-50, 000 + per
annum for a different
approach to learning.
Paradigm shift towards creative learning based
focused curriculum in favour of the brand which has
been well crafted & researched program; Also,
parents keenness on Holistic education in early years
& willing to pay-extra for this
Current penetration much lower as compared to
global standards & it’s the supply that’s creating the
demand; Right pre-school format aimed at right
target group definitely works well !
There is a significant regional dominance with
players like apple kids, tree house (mainly south),
Kangaroo kids (West), Mother’s pride & Serra Kids
(Delhi NCR) who have played on their strengths to
establish themselves in small territory.
 Key Success Factors
The key success factors for the Parents and Brand are interdependent

Parents are supported &

holistic Child Care is
Working parents will have a provided
committed learning centre to
take care of the child

SUCCESS FACTORS
Brand to provide
SUCCESS FACTORS

International curriculum for

Brand
the child to be ready for
PARENTS

Availability of Infrastructure Future

And Facilities
Well trained teachers to
motivate, inspire and
Identification of hidden educate the child on all
talent and capabilities in the fronts
child
5. Business Model Recommendation
 Evaluating applicability of different business
models for brand
 Model recommendations for franchise format
 Business Model
Recommendations
FOFO (Franchise owned COFO (Company owned FOCO (Franchise owned No fixed terms and conditions
Model franchise operated) franchise operated) company operated) or Hybrid formats

Franchisor Franchisee Franchisor Franchisee Franchisor Franchisee Franchisor Franchisee

Property

Interiors

Equipment

Stock

Operations

Franchisee’s Higher of MG or margin on

Incentive Margins on sales Rent + % of sales Guaranteed monthly income
sales
Sector wise Applicable / Prevalent in
Applicable / Prevalent in
Prevalent Applicable in all formats of service based business i.e.,
Apparel/ jewellery/ product
franchising Beauty/ Health & wellness/
based business
Food & Beverage

Franchise owned and franchise operated model is recommended for TWEETY KIDS
INTERNATIONAL brand. This is the most appropriate model with which the brand can grow
aggressively.
Franchise Owned and Operated (FOFO)
TWEETY KIDS INTERNATIONAL brand will be most successful in franchising business
with FOFO model.

1. Franchisee brings all the investments both for the initial capital and also the working
capital costs.

2. Since the franchisee has invested a large amount of money in the business, commitment
to the business will be high.

3. Will bring in more efficiencies, better control; thus likely to have a profitable business
venture

4. Limited training & man power costs to the franchisor

5. The Franchisee pays royalties to the franchisor

6. This FOFO business model is expected to bring sustainability and independent scalability
to the franchisee.
Franchise Format : Recommendations
Master Area Multi-unit Unit
Franchise Franchise Franchise Franchise

Control of franchising Open a pre-

Limited to a city/ Control of a single
activities given to an determined number
state on a case to unit by the
entity in a large of units in a certain
territory case basis geographic territory franchisee

Area developer Not limited by Typically has a

Sub-franchisor
oversees all the geography; particular territory
assumes the role of
units at a higher however within a that is covered by
the franchisor
level certain timeframe the unit

Lower investment
Allows instant Mix of both AF unit Can club emerging
costs and franchisee
penetration of a + sub franchise areas with sought
involved with daily
brand units after location business operations
International Brands looking to
Will ensure
giants penetrating new aggressively New entrepreneur led
sustainability
territories penetrate
Franchise Format : Recommendation
In order to develop the already mentioned franchise models, we recommend the
following approaches

UNIT FRANCHISE MULTI-UNIT FRANCHISE

• Franchisee should comply with a minimum

• Franchisee invests into one unit and is
responsible for running that unit
• Unit franchisee may be given an option to
convert into multi-unit franchisee at a later
stage, subject to pre-defined performance
criteria
• Franchise to shoulder responsibilities to
market the brand to its target audience
and territory
• Pure FOFO model deployed
roll out plan with a defined timeline
The investor will invest in all the outlets
and will pay the full franchisee fee of the
agreed number of outlets upfront.
• Geographic exclusivity can be given to
the franchisee according to a pre-signed
contractual agreement and performance
criterion
• On event of failure due to performance
the franchisee loses exclusivity to its
geography
• Another FOFO model though requires
investors to have certain retail
operations experience

Complete Support will be provided by the Franchisor and Franchisee will be

responsible for Unit & Multi-Unit Operations.
 Recommendation : Unit Model
OFFERINGS INITIAL SET UP BY Franchisee (INVESTOR)
Business Model Franchise Owned Franchise Operated Model
Minimum Area Required. 2000 - 2500 Sq ft.
Set up Cost Range INR 10 Lakhs- 25 Lakhs
Franchise Fee INR 2,00,000
Royalty 10 % (inclusive of Service tax)
Agreement Period 5 years
Payback Period To be input from Financial Model
Preferred Locations Townships & Independent Villas (G Floor)
Revenue Stream Registration in various programmers
• Brand to provide training support
• Brand to provide details for procurements of supplies
• Brand to audit franchised learning centers regularly
Support • Brand to support in hiring of Teachers/ Trainers
• Brand to assist in terms of central marketing
• Continuous updates on current educational developments
• Dedicated virtual key accounts manager at your disposal to get
resolution for all your queries
Recommendation : Multi-Unit Model
OFFERINGS INITIAL SET UP BY Franchisee (INVESTOR)
Business Model Franchise Owned Franchise Operated Model
Minimum Area Required. 2000 - 2500 Sq ft.
Set up Cost Range INR 10 Lakhs- 25 Lakhs
Franchise Fee INR 10,00,000 for 5 learning centers
Royalty 10 % (inclusive of Service tax)
Agreement Period 5 years
Payback Period To be input from Financial Model
Preferred Locations Townships & Independent Villas (G Floor)
Revenue Stream Registration in various programmers
• Brand to provide training support
• Brand to provide details for procurements of supplies
• Brand to audit franchised learning centers regularly
Support • Brand to support in hiring of Teachers/ Trainers
• Brand to assist in terms of central marketing
• Continuous updates on current educational developments
• Dedicated virtual key accounts manager at your disposal to get
resolution for all your queries
 Brand Growth Recommendations
OFFERINGS INITIAL SET UP BY Franchisee (INVESTOR)
Focused marketing efforts needs to be channelled at the locations
discussed in the roll out strategy. 4% of gross revenue for local
Brand Penetration marketing and 3% of gross revenue for central marketing should be set
aside by the franchisee
To be provided by the franchisor, brand guidelines and operational
Marketing material manual will also be provided
Signage handling and installation guidelines needs to be provided by
the franchisor to the franchisee. The franchise development manager
Signage (employed by franchisor) will make sure they are installed correctly
before the commencement of the operations of a franchisee
The connections through social media, Print, radio, magazines and
Advertising support journals will be extended to the franchisee. However, local marketing
should be taken care by the franchisee itself
Centre should be refurbished at the end of the first term (5 years) of
Refurbishment at renewal the legal agreement. This will include construction costs involved in
of term centre furnishing in ceiling, flooring and painting, along with
improvements in furniture, electrical fittings and signage
 Brand Growth Recommendations
OFFERINGS INITIAL SET UP BY INVESTOR

50% of the franchise fees (applicable at that point of time) will be

Renewal fees charged at the end of the third year term of agreement

Five year term is recommended again to keep the franchisee motivated

New Renewal term and build on an already established brand name in a particular location

50% of the training fees (applicable at that point of time) will be

charged at the end term of the agreement . Also, in case of transfer of
Renewal Training fee the franchisee, this amount will be charged. Refresher training will be
done for the franchisee once per year for no additional charges

Participation of all the franchisees in quarterly meet (boarding,

Additional Training travelling and lodging expenses will be borne by the franchisees). This
support will be a compulsory meet to attend for franchisee head or senior
member of the franchisee team
 Value Proposition for the Investor
Value proposition for the investor are the following

Brand Repute and Recognition

TWEETY KIDS INTERNATIONAL has a brand presence in Hyderabad and has its uniqueness in its
curriculum. The STEAM curriculum provided is of competitive International standards

Extensive Support
Franchisee usually face huge challenges in the initial phase due to multiple reasons such as gestation
period, learning curve (increases as the time passes), customer understanding etc. so an extensive
support and hand holding is essential. The Franchisor will assist the franchisee in multiple issues.

Continuous Training & Grievance Redressal Mechanism

Franchisee will be provided continuous training and the initial hand holding of 3 weeks will be
provided. These franchised learning centres will be audited regularly to check the quality of
operations and education offered.
 Value Proposition for the Investor
Value proposition for the investor are the following

Activity based learning

Unlike other pre schools, TWEETY KIDS INTERNATIONAL has its main focus on reasoned learning and
development of overall skill sets through its curriculum and less focus on redundant object oriented
scripted methods

Well Researched Programs

TWEETY KIDS INTERNATIONAL programs have been well researched & crafted for the overall
development of the kids basis age grouping and based on their individual acceptance level to
manoeuvre and excel their Reasoning and Ability and to make them future ready
6. Franchisee Profiling and Roll Out
Strategy
 Desired Regional Franchisee Profile
 Roll-Out Strategy
 Selection Criteria for a Licensee
Profile
Ability: High ability in a franchisee means
• Less amount of value addition required in current set of skills/facility to
run the franchisee
• Better service sales orientation, customer service and Quality of delivery
• Better Capital resource

Management bandwidth:
• Ability to manage human resource/ follow guidelines/impressive
interpersonal skills
• Scale of business managed at present
• How systemized is the present business

Experience in the similar business:

• Prior experience in related business
• Prior experience in services and customer handling

Willingness:
• This depends on level of success in current business
• Will the perspective franchisee be willing to devote time to this business
• Ease of conversion and Work Horizon
• Comfort level with the company
 Desired Licensee Profile
Licensee

Real Estate
4 with a
strategic
location

3
Critical requirements
and  Franchise owned and franchise
Townships operated
Developers  Fully operational control in the
Women
hands of franchisee

2
entrepreneu
 Man management
rs who have
 Parents communication
significant
financial
Important
backing
Investor driven  It is imperative that a female center head

1 who will take up is appointed as naturally women have

single units and better connect with kids
multi-units
eventually
 Roll-Out Strategy
The key parameters to be considered for the roll out strategy

Gives decent space to get enrolment, despite presence of

competition, TWEETY KIDS INTERNATIONAL can get enough
Large Population enrolment to make franchise a financially viable venture
Size

High Density Of Indicates the population is aware of the play school concept
Schools (Pre- and there is a basic level of willingness to approach them for
Schools) the kid.

Large number of If both partners are working, they usually face a problem of
where to leave the kid once they are out to work.
Nuclear families
They get 2 options – Baby sitters or Pre school.
Certainly a school like TWEETY KIDS INTERNATIONAL offers a
very good proposition
 Roll-Out Strategy
The key parameters to be considered for the roll out strategy

•Higher the percentage of working women / mothers,

greater will be the demand of pre- schools

Higher percentage •So, despite the competition presence, TWEETY KIDS

of Working INTERNATIONAL with its unique service portfolio stands to
Mothers gain handsome ground in quick time.

•Typically, The first priority is always the regular schooling

Higher standard targeting a Job opportunity in Future.

of living •Only if there is sufficient disposable income and also time

with the kid, would a parent consider something like a
TWEETY KIDS INTERNATIONAL Pre School
Roll-Out Strategy – Cities

TIER 2 CITIES High disposable income available and Ready

market
already there
TIER 1 CITIES  Once presence in Tier 1 is established,
expansion across these cities must be focussed

Ready Market opportunity exists

 The markets have matured to a level
where the consumer has been
METROS influenced by the similar products
offered in the influence zone and thus
Already captured through defined a right market as 1st phase expansion.
company owned operations
 Also, Propensity to pay is high
along with willingness to pay for
a Quality service with right
pricing
 These markets have already matured
to level where people understand the
Brand offerings
 Immediate address important
 Roll-Out Strategy – Cities
Rise in the educational awareness and knowhow of global competitive segment and Increase
in the urbanisation makes India one of the leading global destinations for education

4) MUMBAI 5) DELHI- NCR

• High SEC A and SEC B Population and highest • Highest SEC A Population earning >INR 300000 annually
migrated population • Several educational players and large catchment of High
• High propensity to consume creates an Net worth individuals
inherent consumption culture • Prime Areas include Saket, Vasant Kunj and Gurgaon
• Prime Areas include Bandra West, Colaba and
Bandra Kurla Complex and parts of Navi
Mumbai

1) HYDERABAD
• High Demand and propensity to
consume
• Established IT and business
clusters creating high
consumption areas
2) BANGALORE • Prime Areas – West and off- central
• Huge IT development in the city Hyderabad
• Prime Areas include UB City, Leela Galleria,
Garuda Mall and Forum2 in central Bangalore
3) CHENNAI
• Popular for in-class high street retail destinations at affordable
rentals
• Highly educated and globally conscious upper and middle class
• Prime Areas T Nagar and Nugambakkam traditionally. GST road
and Velacherry upcoming luxuty retail destinations
 Phased Roll Out Strategy – Cities
Prior focus should be given to Metros and Tier-1 cities followed by Tier-2 cities.

Phase I Phase II Phase III

South India South India West India

 Hyderabad Coimbatore Mumbai
 Vijayawada Trivandrum Pune
 Vizag Kerala Vadodara
 Guntur
 Bangalore North India
East India Delhi
 Chennai
Bhubaneswar Gurgaon
 Cuttack UP
 Kolkata

With the sudden rise in good governance and or other factors we should also be
open to target a city where there is a large educated and globally conscious
population with good spending capabilities who await these kind of facilities
 Proposed Roll-Out Plan
Strategic Fit
 Targeting the most developed
markets with high per capita
income and more keenness
towards the need based
products
 Phase 1 – South Indian
Markets (Prime Cities)
 Phase 2 – South & East India
 Phase 3 – North & West India
Marketing Fit
 Marketing is the most expensive
channel wherein the money has to flow
in continuously
 We propose to develop locations with
marketing clusters.
Financial Fit
 The phase wise approach is
critical to the business for the
financial feasibility of the
proposed roll out.
Operational Fit
 Minimum monthly revenue is required to
make the franchisee profitable.
 We suspect it to only happen in the
strategic locations of Phase I. Other niche
cities etc. from operations point of view
are most suitable in the Phase II & III
7. Franchisor and Franchise Responsibilities
 Franchising Terms

01 Businesses will be run under the brand name of “TWEETY KIDS

INTERNATIONAL”

3 Weeks of training to be provided by the brand to newly

02 franchised centre. Centre to be audited regularly

03 Recruitment of faculty and School operation’s team will be

responsibility of the brand

04 All employees shall be on rolls of the franchisee and their salaries

shall be payable by the franchisee

05 Brand shall supply the content on its own discretion on the basis
of its market survey and price-sensitivity
 Franchising Terms
Assistance in setting up the schools and overseeing the setup,
01 visiting fees will be chargeable Provision of informative material,
presentations

Assistance in organizing of local promotional activities/events and

02 printed material like Brochures, Pamphlets, etc. on cost basis

Brand will continuously assist in monitoring and managing the

03 Franchisee pre-schools to make sure that the best business
practices get implemented at the franchisee end to run it on profit

04 Brand will also take care of quality of accessories to be delivered

at franchisee end

05 Provision of all administrative forms, formats, Cash Sheets, Stock

Sheets, Monthly report sheets etc.
 Franchise’s Support
Franchise will be provided with the following support
Pre-Opening Franchise Support
 Layout and design; architectural support
 Pre-opening purchasing assistance
 Assistance in organizing of launch promotions
 Training: A comprehensive training is
provided to all the Franchisees on schools
operations, accounting, etc. All franchisees
are to be put through a highly focused
Support
training schedule which educates them on
utilizing their entrepreneurial skills to become
highly efficient and happy franchisees.
Employees from all verticals are should be
trained on a regular basis which helps to
continuously groom and enhancing operating
efficiencies of employees.
 The process starts with the location and
identification of a suitable site that meets
Franchisor’s stringent criteria
Post Opening Franchise Support
 Operations Manual
 Advertising and local promotion:
 TWEETY KIDS INTERNATIONAL will organize
events in collaboration with its business
partners to promote its each Franchisee
centre.
 Operational support: Day to Day
operations, Technical and Administrative
advices.
 Regular advices on administrative issues
and inventory control Marketing Ideas
structured to suit a location
 PR support: Regular PR coverage at
national, regional as well as town level.
 Centralized Brand Building through all
media - Print, Outdoor, Web, Retail,
Electronic.