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Issue Date: July 2006 issue, Posted On: 7/13/2006


Computer Tots perfect franchise fit for former prof.

By Martin Desmarais

 

Deb Evans, standing, president of Computer Tots/Computer Explorers, visits a classroom of students. The franchise chain provides computer technology education programs to schools, daycare centers and other community organizations. 

CHICAGO — Education was Shaily Verma's calling for years, so when he left the academic world to pursue opening up his own business, the Computer Tots/Computer Explorers franchise brand was a perfect fit.

Computer Tots, which is headquartered in Cypress, Texas, provides computer technology education programs to public and private schools, daycare centers, charter schools, YMCAs and other community organizations. The programs are designed for students in preschool through eighth grade and provide software, curriculum, technology-certified teachers and staff, and continuous training and updates. The programs are designed for after-school classes, camps and technology days.

In January 2005, Verma bought an existing Computer Tots franchise that covered a region of the Chicago suburbs. Since Computer Tots is a home-based business, Verma, who lives in Gurnee just outside of Chicago, this opportunity to take over an existing business as a logical move, though he said he would have been willing to launch a new program in a different area.

Verma took over his Computer Tots franchise from business owners who ran it for 10 years and made it one of the top franchises in the chain. Still, Verma's ambition has pushed the franchise even farther. He currently has a staff of 15 teachers and 52 centers in the Chicago suburbs.

According to Deb Evans, president of Computer Tots/Computer Explorers, Verma has increased the business 20 percent.

"He took over a great territory — a very profitable territory — and he has done so much more," said Evans.

"It is harder to go to that next level and Shaily has done that," she added. "He has faith in that territory and he knew what to do with it and he has really run with it."

Part of Verma's success can be attributed to his willingness to push Computer Tots' new initiatives. The chain, which was started in 1984 as Computer Tots, began franchising in 1989, and originally focused on preschool children. Recently the chain has expanded this focus to cover students up till the eighth grade, which brought the Computer Explorers name. It has also launched its Integrated Technology Resource Program with a broader focus on curriculum to be integrated with students' core studies through school. In addition, franchisees are encouraged to push special technology programs.

In his territory, Verma has rolled out the Computer Explorers, has an Integrated Technology Resource Program scheduled to launch with a school in the fall and has run several successful special technology programs. Special programs include a junior engineering program using Legos and robotics programs.

"We introduced those programs and those are becoming very popular," Verma said. "I talked to some of the parents involved with this and I am thinking of starting a Lego engineering league."

Verma's ambition stretches to the ranking of his territory with the Computer Tots brand — he hopes to make it the No. 1 franchise in the next five years.

He believes the special programs are key to this growth.

Verma is also pushing the boundaries of the Computer Tots/Computer Explorers concept, eyeing basic computer classes for adults and senior citizens. "We are introducing classes there to see is there is a market," he said. "We are just starting those and don't know yet."

He also hasn't ruled out international expansion and is interested in bringing the concept to India. "I believe there will be a big demand there," he said.

A 1984 graduate of the University of Delhi, with a degree in mathematics and statistics, Verma worked as a manager for DCM India Ltd. before coming to the United States in 1989. He graduated from Northern Kentucky University in 1991 with a master's degree in business administration. He then studied at the University of New Orleans, graduating with a doctoral degree in financial economics in 1995. He returned to North Kentucky and taught there for eight years.

In 2003, Verma joined Cardean University, an online school, and developed its finance program. This brought him to the Chicago area. He taught with Cardean until late 2004.

At that point, Verma turned toward the business world. "I decided to do something on my own, instead of going back into academia," he said.

"I came across Computer Tots and I really liked the program," he added. "I was looking at different franchises in the education area."

Over a year into franchising with Computer Tots, Verma is very satisfied with his decision to join the chain.

"Things have been going pretty good. The first year was a learning experience," he said. "Now we are focusing on growing."

"There is nothing like doing your own business," he added. "All the creative ideas come and you can implement them."

The educational aspect of the job also continues to fulfill his life-long interest in education.

"It is very satisfying to see young kids - age 6-to-5 years old — learn new things," said Verma. "It is great to see young kids learn computers."

Computer Tots/Computer Explorers is very optimistic about the chain's potential, particularly in light of the increased federal education requirements and funding for educational technology in public schools put in place by the No Child Left Behind Act of 2002.

Computer Tots currently has just over 100 franchisees. The chain is looking to add 40 new franchisees in 2006 and more than 50 in 2007 to achieve its goal of 400 franchisees by 2010. It has franchisees in 27 states along with international locations in Canada, Australia, Malaysia, the United Kingdom and New Zealand. System-wide sales in 2005 were $7.5 million, with 2006 revenue projected to surpass $10 million.

Though Evans said that the typical Computer Tots franchisee is a corporate businessperson and not someone with an education background, the education element of the brand does strike a chord.

"We want to make sure it is best for the children, but it is for profit," she added.

According to Computer Tots, home-based, franchised businesses represent one of the industry's fastest-growing segments, owing to factors such as low overhead — including no rent or real estate costs and the advantage of home-office tax deductions — and low cost of entry. The estimated initial investment for a Computer Tots franchisee is in the $60,000 range.

In September 2003 Computer Tots was acquired by the Houston-based International Center for Entrepreneurial Development Inc., the parent company for Kwik Kopy Printing, American Wholesale Thermographers, Copy Club, The Ink Well, Franklin's Printing, Women's Health Boutique, Parcel Plus and Kwik Kopy Business Centers.

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