TCY franchising: Fixed royalty model that clicks

 If you have the right motivation, right speed and right resources, education franchising can be YOUR business today. Egged on by the modern success mantra – low investments and high profits –  a unique subscription-based model ensures you a great success.  It gives the franchisee an option to earn more, by the real sweat of his brow!

 In this age of blended learning, where e-tutoring is slowly supplementing traditional classroom teaching in the country, smart education franchising makes a lot of sense for a modern entrepreneur.  His preferred choice would be going in for a tried, tested and trusted franchisor because he cannot afford to take chances even in an event of a shaky economy. 

 Subtracting franchisee worries and multiplying their earnings, TCY’s unique fixed royalty model has worked wonders with its 34 franchisee centres.  No wonder, more and more franchisees are opting for multiple centres.  This is the magic of this franchisor, an education company engaged in test preparation and supplemental education for the last one decade. 

 The beauty of the fixed royalty model is, it helps the franchisee make more and more money.   The harder he works, the better are his returns because he ends up paying his franchisor his share. On the other hand, under the variable royalty model, he always believes that howsoever-hard work he puts in, the company takes a specified percentage of his earnings as royalty.  

It is worth noting that the company has 34 franchisees in Northern India, mainly in Punjab, Chandigarh and Jammu. Now it is targeting Haryana, Uttar Pradesh, Himachal Pradesh, Delhi and NCR. Students’ word of mouth is the major factor behind the TCY’s enrolment growth.

 The model highlights:-

-Low start-up cost

- Subscription-based royalty

High ROI

-Training and back-up support  

Maximum returns, maximum motivation. It is as simple as that.   When a franchise-centre enrolls a new student, there is a certain amount of revenue attached to him.  As his number of students increases, his (franchisee) overhead costs are fixed.  So, he is highly motivated to enroll more and more students resulting in more revenue.  So, more revenue, more returns. 

 “We believe in empowering our franchisees with a right kind of training and model. Once they maximize their returns, they can gain the leadership in their own geographical area,” according to Mr. Kamal Wadhera, the CEO of Top Career & You.  

The franchisee has a great role to play in the company’s classroom programs for the simple reason that the franchisor cannot be physically present at the centres. 

 “We standardize every aspect of delivery through our centre management and ensure that our franchisee gives the best to his students, his end-customers. And, we never compromise on quality,” the CEO said.  

Drivers of growth: 

The experts feel that the franchisees are the drivers of growth for franchisors.  It is for the sake of speed and resources that one should expand through the franchise route rather than the company outlet.    Over here, capital is very important.   If one has to grow through self-owned centres the growth would be very slow. 

  One can use the power of many entrepreneurs in the chain and actually empower them to lead in their local geographical markets. It is a win-win situation for both. According to the fixed royalty model, the franchisor gives a major chunk of the revenue (earned) to his franchisees but at the same time, the franchisor’s speed of growth is much faster. 

 Moving fast towards its objective of opening hundred centres by the end of this financial year,  TCY has  optimistic plans for the future.   The company lays lot of emphasis on the strong franchisee network. 

According to Mr. Wadhera, “Tying up with a franchisee is like a marriage. You have to see your compatibility since it is a very sensitive area.  Before signing up with a franchisee we have to see so many things because our franchisee is representing us in a particular city, in all aspects – classroom delivery and courseware, etc. We ensure that he follows ours standardized approach.” 

Win-win for franchisee: 

 Under this unique tie-up, the franchisees do not have to invest anything in the R & D of the courses, which is taken care of by the company itself.  The entire courseware, methodology and administrative support are given by TCY. So, the franchisee does not have to worry about anything.  In a way, it is a win-win type of situation for the franchisee. All he has to worry is about his overhead costs and staff salaries. Now that is also becoming a thing of past with most of the franchisees making handsome gains due to growing businesses. 

 Now the question arises,   does online education affect classroom teaching?  At least the CEO does not think so.  “Both are doing great. In fact, our online programs are supplementing students’ classroom learning in the country. I can support my contention with the rave views we are getting almost every day from the students and the education fraternity,” he said..

Future plans: 

The company has big expansion plans for Delhi, Haryana, Uttar Pradesh and Southern part of India. It is looking for the right kind of partnerships. “That is very important for the success of the franchising model.  We are very bullish that our model will be highly successful in other parts of India as well,” according to TCY’s Franchisee Manager, Mr. Aman Bansal.   

“We are moving towards our target (100 centres) through different modes and have started advertising on the national platform.  At the same time we are increasing our brand visibility through our online portal and the media.”  

 With an average of opening a new centre every fortnight, the company is making long strides in increasing its market share in the entire region. “We want to keep up with the same winning strategy of ‘growth through our partners’ by maximizing their profits. We are very confident of our ‘tried and tested’ franchise model that has a potential to achieve over 100 % return on investment in the first year itself, Mr. Bansal added.   

 About TCY:

Since its modest beginning in the year 1998, Top Careers & You has been providing college level test preparation and school level supplemental education services.   The company serves almost all the sections of student community, through classroom teaching, and online mode; from K-12 to students preparing for competitive exams. TCY is present at 34 locations, and is tying up with more like-minded individuals and businesses, to further extend its footprint across the country.

Contact:

Corporate Communications
Raj M. Atwal rajatwal@tcyonline.com
Ludhiana (India): 09815698907, 0161 2461364
Meenakshi K. Chatta mkc@tcyonline.com
Delhi (India): +91 9810144005
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