Education concept. Student studying and brainstorming campus concept. Close up of students discussing their subject on books or textbooks. Selective focus.

What is the Educational Service Industry?

For many students around America, public education does not provide sufficient resources for success. Many franchise business owners are looking to turn that around. The educational services industry is constantly expanding with over 100,000 establishments currently, according to the Bureau of Labor Statistics.

Franchise opportunities in the educational service industry include various forms of service:

  • Tutoring services
  • Educational childcare
  • Career education
  • Art education
  • Dance education
  • Adult language education
  • Test Preparation
  • Driving Education

Franchises like Sylvan Learning, Mathnasium, and Kumon all provide educational services within this franchise industry. Many of these businesses provide at-home tutoring, while others provide their clients with a location. The majority clientele for this industry is comprised of student’s grades K-12, however the industry provides services for students of all ages. These services include career education, dance, language, and driving (to name a few).

The educational services industry is comprised of both the public and private sector. Not only does it encompass a wide variety of services and markets, the educational services industry brings in roughly $1,505.8 billion in revenue and is comprised of approximately 1,235,542 different businesses, according to IBISWorld. The industry employs more than 12 million people and is expected to expand in all areas through 2023.

What makes up the industry?

A key portion of the industry lies in tutoring services geared towards youth and child education. Tutoring services are often provided at an on-site location or educational center. These learning centers provide both group and private tutoring in a classroom style setting. Often these franchises are a popular route for those looking to prepare for standardized testing. Franchises such as Kumon and Huntington Learning Center are examples of this tutoring style.

Tutoring services are often provided at an on-site educational center.

Other educational tutoring businesses, however, provide in-home services wherein the franchisee connects the student with an appropriate tutor. Franchises such as Club Z Tutoring and Creative are examples of at home services. Unlike on-site tutoring, private in-home tutoring does not necessarily require that the franchisee possess prior experience in the educational sector.

Another popular form of educational franchise is aimed towards younger children, combining childcare and education. Many of these franchises provide child care during the day but also provide after school services. More and more studies have begun to point to the significance of very early childhood education as a crucial component to brain development and future cognitive skills. According to the US Bureau of Labor Statistics, childcare is a sector of this industry that will experience a spike in employment growth over the next several years.

While a large portion of the clients for this industry are students in kindergarten through 12th grade, this industry goes beyond tutoring services. There are more than 30 million American citizens over the age of 25 without a high school diploma, according to the US Census Bureau. Luckily, the educational service industry also offers opportunities for adults. Many franchises offer GED programs that assist adults in completing their high school education. Other businesses are aimed at teaching adults technical or business skills in order to help them advance their careers. Alongside these two options, language, art, or dance courses are often privately held and made available to adult-aged individuals, too.

The educational franchise industry often serves as a base point for people looking to redesign their careers or enter new industries. Many franchises provide training and certification for various industries. Even adults that don’t necessarily need additional education take advantage of this industry as an opportunity to learn something new.

Most profits in educational services come from tuition fees, which vary depending on location and level of the institution. However, the industry comes with challenges as well. Finding qualified instructors is always a challenge in any educational institution and requires time and money in order to achieve.

Technology trends in the industry.

Developments in technology, while initially posing a challenge to the industry, have been used to the benefit of the educational franchise system. Franchises have begun to introduce new tech tools and systems in their curriculum to help students learn material in new, modern ways. Developments in technology have also enabled franchises to provide students with supplemental activities to complete at home.

This trend has also assisted educational franchises in their administrative duties. With electronic versions of their curriculum, educational businesses can distribute materials more efficiently.

Is the Industry Right for You?

The educational services industry can attribute much of its success to the increased demand for higher education. Each year the amount of college students expands, as more people begin to recognize the value of higher education. Additionally, many people are realizing the value of a practical education, choosing the route of trade schooling.

Prospective franchisees of the industry are guaranteed the advantage of a tested, preexisting educational system. Establishing a credible and effective curriculum is challenging and risky. With a franchise, this trial-and-error process is already complete. Not to mention, the brand name and positive reputation has already been established. This enables franchisees to influence our current educational system without needing to return to school for a degree in education.

A franchise business in the educational field can be a tool to reform the current educational system. Franchises allow for large-scale marketing and influence, which smaller companies are often unable to afford. People like Kevin Lee use an educational business as an opportunity to address issues in today’s schools. In an interview with Entrepreneur, Lee explained his desire to open an educational franchise stemmed from the shortcomings in the public education systems. Franchising with Best in Class gave Lee the opportunity to make a positive impact in the communities close to him.

Callens Capital


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