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Insight on Education Franchises

We’ve seen a lot of interesting knock-on’s for the franchising sector in the wake of the recession. The business landscape has changed so completely, but few could predict the number of opportunities that would open up for select franchise industries. Education franchises are noting mixed results.

In this case, we are specifically referring to test prep businesses. Empirical evidence states that students are staying in college longer and more people are seeking extra degrees, either to reskill themselves, take a break from the recession, or both. Given this reality, one assumes test prep franchises will be noting decent growth, as these tests gain importance.

An interesting story from the Reno Gazette-Journal says yes and no. While a traditional company like Huntington Test Center has seen a dip in numbers attending its course, PowerScore, an online teaching resource, has watched its profits rise.

"We're seeing a lot of enrollment on classes that are on the less expensive end," PowerScore CEO Dave Killoran said. "Through the first half of the year our SAT prep enrollment was up about 38 percent over the same period last year. ACT enrollment has been up in the range of 20 percent this year."

The moral for entrepreneurs considering this educational franchise sector is this: people need this service more and more, but they are very limited with what they can pay. Try to find a franchise that blends affordability with quality and you should have a top business opportunity.

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