10 Reasons Why Zero Royalty Models & Pre-schools Fail - curious kids


10 Reasons Why Zero Royalty Models And Pre-schools Fail

There are many reasons a pre-school franchise might fail. And one of the primary reasons this happens is because of zero royalty models.

As per Investopedia, a royalty is a legally binding payment made to an individual, for the ongoing use of his or her originally created assets, including copyrighted works, franchises and natural resources.

  • Ideally they are formed in a way that benefits both the franchisor and franchisee. A percentage of sales or a payment per unit goes to the franchise.
  • Running a pre-school is not easy
  • Pre-schools involve a lot of hassle. It’s no piece of cake!
  • If you had previous expertise in the pre-school franchising sector, you may have known better.

Here are a few things that go wrong if you tie-up or take a franchise of a pre-school that’s royalty-free:

You need a brand

A brand gives you a lot of added amenities along with a core, dependable business model.

Brands have a reputation that is based on years of experience in the market. Benefits include:

  • Being a franchise of an already established business. Ideas, the brand, the operating techniques, etc. are all in place
  • Take advantage and thrive on the reputation of the previously established brand of the business.
  • Financing becomes simpler with a recognized brand
  • You can make the most of the numerous business relationships already established
  • You get established support and security system
  • Lower chances of failure as more franchises encourage new people into their network
  • Chance to make more money thanks to the backing of a big name and a big brand

And all of this comes with meagre price of paying a royalty!

Regular updates

If a pre-school franchise takes a cut of your business, you get amenities in exchange too.

And this is not just the initial curriculum or teachers recruitment — There are regular upgrades available on your school curriculum too.

You will be updated with the latest technology and advancements in the education sector.

Brands like Curious Kids also provide lot and lots of regular teacher training programs that need happen.

All of this helps reinforce the brand’s status — and in turn result in higher profits for your business.

Lots of advertising

Royalty sharing comes with a lot of pros. And with Curious Kids, you get amazing advertising, & marketing inputs.

See the full brochure!

So brands that give you 0% royalty will simply shy away from doing any of this.

Simply because they don’t have the bandwidth!

Can you imaging what a huge amount you have to spend on advertising and marketing. Even with a brand name, your pre-school will not thrive without the same.

In a similar way, don’t also fall for the gimmicks of franchises that charge less. Those who charge the lower royalty provide less support.

Especially, pre-schools or kindergartens that are new in the business tend to do badly since the level of support is lesser.

95% of businesses fail because they do not have aggressive marketing budgets.

Cash flows suffer and it takes longer to achieve breakeven.

With Curious Kids international pre-school, you get a massive marketing and advertising advantage.

We have earmarked a marketing budget allocation specifically for your preschool too.

Some of these include:

  • Multi-crore advertising budgets to drive your admissions
    • An allocation of Rs. 1 to 2 Lakhs for your tactical promotion
    • Aggressive sales strategy to give you increased admissions
    • Centralized call centre
  • Full-fledged local marketing support for you

Invest in a preschool that gives you guaranteed returns

If you are looking for maximizing your chance of earning profits and getting guaranteed returns on your investments, connect with us.

A Curious Kids representative will help you with all the information you need!