Franchise Model [Partner with IITians for Engineering Entrance Coaching] [08-08-2011][An analysis of the opportunity to partner with Quest Tutorials as a franchise partner. In the following pages, you willunderstand the size of the opportunity, information on Quest, requirements for franchisee, franchisor support anddetailed financial model for a partner centre.]
Test Preparation Market in India Total market size of Test Preparation sector in India is estimated at Rs. 18,000 Cr. With a growing economy, more and more students are getting enrolled in schools and colleges for education. There is an annual increase in the number of students seeking admission in professional courses through entrance exams.Science Students Engineering Entrance Pre Medical Entrance (PMT)Subjects Physics, Chemistry, Mathematics Biology, Physics, ChemistryTests IITJEE, AIEEE, BITSAT, State level AIPMTTotal students (XI +XII) 30 lakhs + (15 lakh+ annually) 4 lakhs (2 lakhs annually)Average fees Rs. 40,000 per annum Rs. 40,000 per annumMarket Size Rs. 12,000 Cr. Rs. 1600 Cr.
Commerce Students Chartered Accountancy Company Secretary BBA / Law EntranceSubjects Accounting, Economics, Accounting, English English, Maths, Reasoning, GK Math, Mercantile Law Economics, , Law, IT# of aspirants 2.5 lakhs annually 2 lakhs annually 1 lakh annuallyTests CA-CPT CS Foundation CLATAverage fees Rs. 15,000 per annum Rs. 15,000 per annum Rs. 12,000 per annumMarket Size Rs. 300 Cr. Rs. 300 Cr. Rs 120 Cr.Graduate Students MBA Entrance Engineering Services Civil ServicesSubjects English, Maths CS/EE/ME English, Maths, Reasoning, GK# of aspirants 2.5 lakhs annually 4 lakhs annually 3 lakh annuallyTests CAT/XAT/SNAP/MAT GATE/PSU/IES CSATAverage fees Rs. 20,000 per annum Rs. 15,000 per annum Rs.30,000 per annumMarket Size Rs. 500 Cr. Rs. 600 Cr. Rs 900 Cr.
Opportunity in Engineering Entrance coaching (IITJEE, AIEEE, BITSAT etc.)
Engineering Entrance Coaching (IITJEE, AIEEE, BITSAT etc.) Largest among all coaching opportunities (Rs. 12,000 Cr.) Many small fragmented teachers/tutors running institutes with unstructured course material and bad delivery standards Tremendous demand for good coaching, due to high competition for admission to good colleges/course Big brands are limited to Kota & Delhi, Hyderabad Changing patterns of competitions are creating demand for upgraded coaching facilities. Entrance exams are becoming computer based (CAT, BITSAT, AIEEE etc.) leading to a need to have online testing platforms
Quest TutorialsFastest growing brand for IIT JEE coaching in India.
Founded by IITians in 2002 Praveen Tyagi Gaurav Mittal MS (CS) Univ. of Alabama, BE (Civil) IIT Roorkee MBA IIM Lucknow BE(E&C) IIT Roorkee. Worked in Oracle (California, USA) and Brience Worked with J Walter Thompson, Zensar Inc (San Francisco, USA) Technologies and Career Launcher
Maximum Media Coverage Quest and its promoters, Praveen Tyagi & Gaurav Mittal have the maximum media coverage among all coaching brands in India: o Interviewed by Shereen Bhan in ‘Young Turks’ in CNBC-TV 18 in 2006 o Interviewed by NewsX in 2009 o Covered in Times of India, Economic Times, Indian Express, Pioneer, Telegraph, Asian Age, Telegraph and many more national dailies Advertisements have come out in The Times of India, the Hindustan Times etc. Radio campaigns have also been played on Fever 104.
Biggest online presence www.questtutorials.com has the fastest growth among all coaching brands in India. 15000 unique visitors every month. Quest is among the top 3 websites when searched on Google for ‘IIT JEE’Coaching Social Media: Quest has the largest community on Facebook.com (http://www.facebook.com/IITJEEhelp) with a fan base of 50,000+ Direct ‘online’ coaching to students all over India through internet Online testing: (http://tests.questtutorials.com/) Students can practice with immediate comparative assessment. BITSAT is computer based. AIEEE is going to become computer based.
Course material – Power CoachingPublished by Westland Books, a Tata company Based on the ‘New IITJEE Pattern’ India’s 1st ‘Time managed’ IIT JEE course material Over 2400 pages with over 9500 problems, 1400+ solved examples, 3800+ objective problems, 4200+ subjective problems for practice Entire course in workbook format to measure progress regularly
CounsellingOur counsellors are rigorously trained to help students and parentstake a well informed decision about their life and career. Mentoring: Motivating the students with information on opportunity in a particular career. Help them in time management and self study. Parents: Parents’ involvement is critical towards the success of a student. However, it becomes difficult for most parents to take time out and collect information on careers, competitive exams and study methodology. Whenever needed, our counsellors visit the house of a prospect and offer counselling.
Student Centric Programs Focus on performance in school as well as competitions. Testing: Chapter Tests, Phase tests & Test Series Tracking student progress: Class attendance, Test performance with comparative analysis Regular tracking of ‘study at home’ by the student o Textbook reading, Assignment completion Feedback to parents: o Absence is reported to parents immediately o Report of student progress on telephone o 1-0n-1 interaction with academic in-charge (twice an year)
Scalable systemsOur teaching methodology makes the program quality independent ofany single faculty. Programs are broken down to every lecture, with well defined objectives. At any point in time, we can train and deploy teachers from a wide pool of available school instructors, while delivering high quality education. Teachers are provided the following: 1. Teaching notes 2. Power Point slides (if needed) 3. Time table
Program Details 2 Year Program for Class 11 (XI) o School syllabus for Class 11 (XI) & 12 (XII) o IIT JEE Level problem solving 1 Year Program for Class 12 (XII) o School syllabus for Class 12 (XII) o IIT JEE Level problem solving 1 Year IIT JEE Coaching Program for Class XII Pass o Revision of School Level syllabus for Class 11 (XI) & 12 (XII) o IIT JEE Level problem solving Crash Programs
Franchisee Profile Dynamic & ambitious entrepreneurs with passion for education Prior business experience is of definite advantage. Post graduate, MBA preferred. Full Time Commitment: You have to be totally involved in business operations.
Investment: Rs. 20-25 Lacs. This includes Rs 7 lacs as franchising fees to Quest Tutorials. Annual renewal fee: Rs 75,000. Royalty: Quest charges a royalty of 20% on the fees received. Course Material: We offer the Power Coaching course material at substantially reduced rates. Space requirement: 2000 sq. Ft to 3000 sq. ft. (2-3 classrooms with a seating capacity of 50, counselling area, reception etc.) Minimum business guarantee: Every franchisee has to guarantee a minimum volume of business at a centre, failing which Quest has the right to terminate the franchise
Training: Product Competitor analysis, Comparative product analysis, detailed understanding of the course material & programs Engineering & medicine as a career, Information on different tests IITJEE, AIEEE, AIPMT, AIIMS: number of aspirants, success percentage, exam format etc.Program details of Quest. Suitability to the changing pattern, ‘PowerCoaching’, Online testing, IITJEE/AIEEE coaching combined with schooltuition,
Training: Academic Operations & Administration Attendance capture, reporting and feedback Student performance capture, reporting and feedback, Meeting with parents and feedback Batch scheduling, extra class scheduling etc. (if needed) Accounts: Fee collection, regular reporting to HO Material inventory and managementAcademic Systems support Teaching notes and/or Slides for presentation in class.Faculty support: Quest will help in hiring and training the facultymembers, as and when needed.
Training: Sales & Marketing Counselling, Telemarketing & Sales, Presentation to students and parentsSchool activities & student contact data collectionMarketing support Marketing Collateral: Designs for boards, Banners, Pamphlets, mailers, brochures, presentations etc. Online support: Online lead generation, centralized data sourcingOperations Manual This contains guidelines on Sales, Telemarketing, Workshops, Academics, Administration etc.
Why a ‘Quest’ franchise makes perfect business sense?
1. Market Leadership Quest Tutorials is the only IITJEE Coaching brand with a successful franchising model. Likely to become a national leader by 20132. Cash breakeven in the 1st year Typically, breakeven is achieved in the 1st year of operations. Within the next few months you can start taking home the profits.3. You earn respect, which is priceless. Nothing gives you respect in society like education. You help make careers and earn respect of students and parents, alike. Success stories are credited to you.
Terms and Conditions1. The Company shall provide you with complete technical know-how, marketing know-how, procedures, etc. in forms of manuals.2. All costs towards local promotion shall be borne in by the franchisee.3. The franchisee shall guarantee some minimum business at the centre, failing which the franchise can be terminated by the franchisor.4. A royalty of 20% on monthly collection shall be charged on a monthly basis.5. Every affiliate shall pay a fee of Rs. 750/- per month on account of financial audit conducted by a Chartered Accountant firm deputed by the Company.6. Course material is charged extra from the affiliate.7. The Company shall send its executive(s) to every centre to look after the various aspects of day to day running of the Centre.8. The start up kit shall consist of all promotional material and the stationery required for the launch of the centre.Note: All the financial projections are taken on our experience accumulated over a period of 8years. However, the result might differ from person to person or place to place.
Associate with the best, associate with Quest Tutorials!! Contact Information Website: www.questtutorials.com Email: firstname.lastname@example.org Praveen Tyagi: +91-9811867955, email@example.com Gaurav Mittal: +91-9811200480, firstname.lastname@example.org Regd Office: #363, Sector A, Pocket C, Vasant Kunj, New Delhi. Office: Kalu Sarai: 44 C Basement Kalu Sarai
Investment requirement for an Affiliate Centre Heads Amounts Rs.Franchise Fees (One Time) Rs. 7,00,000/- + 10.30% Service Tax 7,72,100Infrastructure (1500-2000 sq. ft.) includes partitions, tables & chairs, ACs,electrical work, interior etc. 3,00,000Laptops, Printer, Projectors 3,00,000License softwares (to be spent over one year) 50,000Start up Kit 51,000Attendance Machine (to be installed at every centre) 15,000Launch expenses 1,00,000TOTAL 15,87,100Renewal Fee (Every Year) at Rs. 75,000/- + 10.30% Service Tax 82,725Note: This investment may be saved on an access of ready infrastructure. Our executives / managers shallalso help you in development of infrastructure.Sale of Prospectus will be done at Rs 100/- per admission. This will include the cost of silver card to beissued to every admission.
Program Fees2-Year program (Total fee: Rs. 1,40,000/- ) Admission Fees 14,000 Infrastructure Fee 21,000 Examination Fee 11,200 Course material 9,800 Tuition fees Fees (in Rs.) 84,0001-Year program (Total fee: Rs. 90,000/- ) Admission Fees 9,000 Infrastructure Fee 14,500 Examination Fee 7,200 Course material 6,300 Tuition fees Fees (in Rs.) 52,000*This does not include the Service Tax component.These figures are MRP. There will be discounting done on the basis of the scholarship test, etc.
Estimated Revenue: Year 1 Admissions Total students RemarksMonth 1 – Apr 25 25 11/12 admissions startMonth 2 – May 20 45Month 3 – Jun 20 65Month 4 – Jul 25 90 12 pass admissions start hereMonth 5 – Aug 25 115Month 6 – Sep 15 130Month 7 – Oct 5 135Month 8 – Nov 5 140Month 9 – Dec 5 145Month 10 – JanMonth 11 – Feb Preparation for examsMonth 12 – Mar Exams in progressTotal 145 145 Total Batches = 4Total Fees Collected 58,00,000Franchisee Share (80%) 46,40,000
Estimated Revenue: Year 2 Admissions Total students Month 1 – Apr 25 125 (Continuing from Year 1 = 100) Month 2 – May 20 145 Month 3 – Jun 20 165 Month 4 – Jul 25 190 12 pass admissions start here Month 5 – Aug 25 215 Month 6 – Sep 15 230 Month 7 – Oct 5 235 Month 8 – Nov 5 240 Month 9 – Dec 5 245 Month 10 – Jan Month 11 – Feb Preparation for exams Month 12 – Mar Exams in progress Total 145 245 Total Batches = 7 Total Fees Collected 98,00,000 Franchisee Share (80%) 78,40,000After discounts, the average fees received should be Rs.40,000/- per students per year
Expected Profit and RoIYear 1 Revenue 46,40,000 Expenses 28,44,000 Profits 17,96,000 Investments 15,87,100 Return on Investment (RoI) 113%Year 2 Revenue 78,40,000 Expenses 40,91,725 Profits 37,49,125 Investments 15,87,100 Return on Investment (RoI) 236%*Note: These are variable figures and shall depend on number of students.