Child Education Industry Report - Industry Trends (3)

Industry Trends

Government Cuts

The biggest trend effecting the industry recently is government budget cuts to the education sector and the consequences of them. These cuts have led parents to seek ways to bridge the gap between inadequacies, real and/or perceived, in the school system and the optimal amount their children can learn.

It’s a trend that Novak can certainly attest to. “More parents are looking for ways to better prepare their children academically,” he says. “For the most part, the teachers in today’s schools are great and do a yeoman’s job, because of budget cuts though; they are not given the time or resources to give every child what they individually need to succeed all the time. That is where supplemental education is playing a larger and larger role. Helping and working with the local schools to better prepare children, to remediate as well as provide enhancement opportunities which are just not available in school.” In some cases, the cooperative initiatives between public and private sectors are accomplished by franchisees, who may get the opportunity to provide tutoring services to school districts to ensure adherence to policies like the No Child Left Behind Program, if qualified.

Also, as Novak alluded to, the industry has become an avenue to enhance and broaden students’ educational experience. This is especially important to students who are seeking to put together a standout application for colleges and universities, where admissions can be very competitive. By taking advantage of supplemental education services, even when they don’t appear to need them, students can put themselves in a better position to achieve top grades in difficult, more advanced courses. Supplemental education can also serve to expose children to art, music, and other areas hit especially hard by cutbacks.

Non Brick and Mortar Locations

Though off-site child education franchises have virtually always been around in the form of tutoring franchises where the franchisee travels to their customers’ homes, the child education industry is one that traditionally has been dominated by on-site (brick and mortar) locations where customers must visit a certain location to receive services the franchise provides. However, technological advances have led to more home-based and mobile franchises emerging.

One example of these franchises is School Jotter, which allows its franchisees to work remotely from home, or anywhere else they decide, to provide products and services in the areas of web design, CMS (content management system) and site hosting to schools.

Another franchise that is veering away from the traditional on-site model is Bricks 4 Kidz, a home-based model that also utilizes mobility to teach principles and methods of engineering to children aged 3-12 in different settings such as public and private Elementary and Middle Schools, as well as pre-schools, holiday and summer camps, in-school field trips and birthday parties.

An additional major factor in the rise of these franchises, in addition to technological advances, is the lack of real estate requirements, which make them less expensive to start.