Bangalore based Hello Kids Education India Pvt. Ltd started as India’s first no royalty model pre school in 2005, a new concept in preschool franchising industry.
The franchising market in India is growing very rapidly. Franchisee is one of the most preferred routes taken by new generation entrepreneurs. A strong, franchisor experience and a well settled model are some of the factors which influence people to go for a franchise. Realizing the strength of our brand and power of franchising in expanding a business, we decided to take this path.
Hello Kids has the preference of people with passion for kids and entrepreneurial skills for their franchisees. Pre-establishment training along with training at intervals, franchisee meet and an expert team solving daily queries and problems immediately from head office is some of the support provided to franchisees.
We are targeting the middle income segment by providing a low cost franchise model. To open a preschool, all one needs is a space of 1,000 square feet and a business investment as low as Rs. 2.5 lakh and as a part of the franchise package, the franchisee will get all the material from kids furniture to education items, play equipments, office stationary to advertising material.
The company has grown really fast since it started franchising. Hello Kids is the largest chain of preschools in Bangalore and is progressing well every year. With more than 175 centers now, we aim to become the largest business in the preschool industry and have the maximum number of centers across India by the year 2017. Hello Kids’ association with NAEYC and UK Early Education is helping us upgrade our curriculum. The direct impact of this can be seen in the competence of our students. The low franchise investment and No Royalty model enables the franchisees to save on huge royalties which in turn results in higher profits.
Among 175 centers, most of our centers are based in South India as we feel that the next phase of growth will come from the tier 2 and tier 3 cities, especially in North India. In order to tap this market, we have established a regional office in Gurgaon, Haryana.
We also encourage women entrepreneurs to opt for our brand and build up home based businesses of their own. For women the centre can run from their premises or can take a building near their residence. Pre schools up to 1- 2pm in the afternoon giving great flexibility, less investment as compared to any other business models and operates for almost 180-210 working days in a year.
Franchise Model
Total Investment: Rs 2.5 to Rs 5.5 Lakh
Area Required: 1,000 to 1,200 Sq. ft
Preferred Location: High density
Franchise Fees: Rs. 50,000 (For 2 Years)
Royalty Fees: No Royalty
Marketing cost (percentage of sales): 10-15% of Revenue
Working capital (per month): Rs. 20,000 to Rs. 40,000
Return on Investment: 30 to 100 percent
Number of employees
required to run a franchise unit: 4
Expected break even time: 8 to 10 months
Number of franchisees
owning more than one unit: 5
Company Operational Since: 2005
Year of starting franchising: 2009
Number of States present in: 22
Number of franchised units: 175+
No. of company owned units: 8