Case Study 203:
How We Get 1000 students & 55 branches in 2 Years
A few days ago, an education franchisee contacted me, asking for help on how to increase their number of students.
As we probed further, we found out that she has not been making a profit or break-even for the last 8 months. To be honest, she is not the only franchisee that comes to us to ask for help.
We have consulted hundreds of education franchisees (various brands) who face similar challenges.
Some are not making money since they joined. As more and more franchisees and franchisors (HQ) come to us, we started to figure out both ends' main challenge.
The Feedback From Franchisee:
(1) "HQ is not providing any support in marketing; we have no idea what to do in marketing."
(2) "HQ overpromise and under-delivered. They told us they would support us in many ways, but after we invested, we got zero support."
(3) "We pay HQ specific fees to do marketing every month, but we get zero sign up from their effort."
(4) "I don't think HQ know what they are doing; they keep asking us to do more roadshow and print more flyers, which we know it hardly work anymore, and we are still suffering."
(5) "HQ takes a huge % of the royalty from us, but they did not even think of helping us get any students; they just leave us as it is after we joined."
(6) This is the most serious feedback I get -- "I had decided to terminate the contract with HQ, their support is awful; after taking our invested money, they are like lost in space. Leaving us clueless, not sure what to do, and we are bleeding money every month."
The question is, how do you solve the problem?
HQ says the franchisee is not doing any work.
Franchisee says the HQ is not helping a lot.
After working with multiple Franchise HQ, we found the solution and have solved all the challenges above.
If you the Franchisor / HQ:
(1) First, HQ must realize the business environment has changed; investors and people's buying behavior have changed. HQ must re-wire their mindset that you have to make sure ALL your franchisee/licensee makes money first, only then will HQ do well. You will get more investors wanting to take up your brand when they see that ALL your franchisee/licensee are doing well.
(2) The only way for a franchisee to do well is to make sure they make money.
(3) The only way to make sure your franchisee makes money -- is to TEACH them how to do the most effective marketing ON THEIR OWN.
(4) Do not micromanage their marketing and doing all the marketing for them on the HQ level. You will create a "blame" culture where if there are no sales, they will start pointing fingers to HQ and say its HQ fault.
(5) HQ should focus its marketing effort in building brand awareness. Any leads generated from the branding effort are the bonus to all franchisees. Meanwhile, ALL the franchisee/licensee should be trained on how to do lead generation marketing independently.
(6) If the franchisee/licensee hardly listens to HQ instructions, then the only way is to make them listen and learn is to engage a 3rd party expert to teach/coach them.
(7) When HQ successfully implemented the process above, HQ will have an autonomous growth system in which any existing and new franchisees will know how to run their lead-generation marketing and make good money.
(8) When every branch is making money, HQ will receive lots of testimonials and will start attracting a lot of new investors wanting to join your company as franchisee/licensee.
We work with a few education franchise HQ (which has a few hundred franchisees worldwide) by helping them implement a series standardization process, coaching, and training.
The results are promising, and all the franchisees who participate increase their intake from 30% to 80% within 40 days.
Education Franchise HQ #1 - That's over 312 students enrolled in 40 days!
Education Franchise HQ #2 - More than 1000 students and 55 new Franchisee in 2 years!
If you are the Franchisee/Licensee:
(1) You can recommend the solution above to your HQ if they are open-minded.
(2) If they are not open for changes and still prefer doing the business the dinosaur way...
We think you are only left with 2 options:
- Terminate the contract and start over. We have a client who did this. Because the HQ just wants to "take their money" then offer no support in return.
- Stop depending on HQ and learn from an education marketing expert on how to do the most effective marketing on your own and make sure your business thrives. This is the most practical way if you cannot afford to terminate the contract.
(3) Some of the franchisees worry that HQ would punish them for doing extra marketing on their own. We always advise them that as long as they are doing lead generation marketing using the HQ brand, they have no reason to punish you. Plus, HQ relies on your royalty as part of their income source.
We have worked with A LOT of education franchises (various education brands) for the past 3 years. The solutions above are proven and tested.
All of them managed to turn around their business.
Education Franchisee #1 - sales within 2 months
Education Franchisee #2 - sales within 7 days
Education Franchisee #3 - sales within 45 days
Whether you are the franchisor or the franchisee, if you are determined to make a change right now but you have no idea where to start, we would like to invite you to have a free coaching call with us.
Some people ask, does it work on other businesses?
We helped scuba diving training, beauty academy, robotics class, coding class, IELTS/SAT, fitness & yoga, gym, corporate training, parenting class, special need kids education, tuition centers, language class, coaching, music class, art class, preschool, enrichment centers, abacus class, consulting, international schools, chiropractor, diploma/degree program before, as long as you are in this similar industry, we can help.
If you want to get some expert advice, you can click the link below to book a free strategy call with us, and we'll give you a call, understand your current challenges, give you some implementation steps, and then implement it on your own if you want.
Click the button below to speak to us:
Speak to you soon.
Don't give up!