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Issue Date: September 15, 2008, Posted On: 9/19/2008


Special Report: Education Franchising

By Martin Desmarais

 
 

Photo courtesy of clipart.com

The influx of new franchise concepts in all segments of the industry over the past several years has left many franchisors dizzy from trying to keep up with the competition. The franchise education sector has likewise seen its share of new concepts, but the growing demand suggests that there is plenty of room for all and franchisors are worrying less than their counterparts about the competition and focusing on expansion.

Education franchise stalwart Kumon North America, consistently ranked as a top brand in the tutoring category, continues to roll on in North America with more than 1,800 centers and 250,000 students enrolled. Worldwide, there are 4 million students studying at more than 26,000 Kumon Centers in 45 countries.

In the first half of this year, Kumon North America increased its new center openings 37 percent compared to the same period last year with openings in Seattle, Atlanta, New York, New Jersey, Connecticut and Philadelphia, according to the company. Kumon expects to open an additional 68 Kumon centers this year. In the past five years, the average Kumon center enrollment increased 55 percent, and overall, the company has 80,000 more U.S. students than in 2002, the company said.

The Teaneck, N.J.-based Kumon North America attributes its success to its franchisees and employees and their passion for educating children.

“Kumon franchisees often leave the corporate world for a rewarding career to help children and their communities,” Deven Klein, vice president of Kumon franchising, said in a recent statement about the chain’s growth. “Education is vital to a community’s prosperity and Kumon instructors have a strong conviction for improving society through education.”

The Kumon Method of learning was founded 50 years ago in Japan by Toru Kumon, a teacher and parent who wanted to help his son do better in school. Kumon’s belief that every child possesses untapped abilities and the potential to excel remains central to Kumon’s philosophy. Today, Kumon franchisees help students improve their math and reading skills with daily practice and self-paced advancement.

Kiddie Academy is another veteran education franchise concept that continues to roll along, despite new competition.

Based in Abingdon, Md., Kiddie Academy is a chain of childcare learning centers with about 91 academies across the United States. Founded in 1981, Kiddie Academy began franchising in 1992; today all but six of its centers are franchised. With a focus on learning through fun, Kiddie Academy provides a developmentally appropriate curriculum for children from the age of six weeks to 12 years old. The curriculum helps expand each student’s knowledge and skills through themes, activities and hands-on exploration, according to the company.

There are 50 additional centers are in various stages of development, with 20 to 30 new locations slated to open each year, the company said.  Kiddie Academy intends to reach 200 franchise locations by 2012.

The Baltimore-based Sylvan Learning Center is another education franchise chain with a strong presence, with approximately 1,200 centers in the United States and Canada; 80 percent are franchised and 20 percent are owned by the company. Sylvan provides in-center, online and home tutoring to students of all ages and skill levels. Programs focus on reading, writing, basic math, algebra, geometry, trigonometry, pre-calculus and SAT and ACT prep. The chain was founded in 1979 and has worked with over 2 million students and families.

New entrants into the education franchise segment have shown an ability to jump right into the fray and find some success.

The Lexington, Mass.-based Chyten Educational Services, which was started in 1998, but began franchising last year, has already opened half-a-dozen franchise locations to add to its five corporate centers. All current locations are in Massachusetts. Services offered include: standardized test preparation, subject tutoring, application essay writing, educational psychological testing and school partnership programs. All of its tutors are required to have a minimum of a master’s degree and have teaching experience.

According to the company, it will have 25 to 35 franchised locations throughout the United States by the end of 2008.

“In just seven or eight months, we’ll have doubled the size of our company through our franchising program. We’re building on the foundation of the original five centers and the reputation we’ve achieved as the leading provider of tutoring and test prep services in the Commonwealth,” Neil Chyten, founder and chief executive officer of Chyten said in a statement. “Our franchise owners are high quality people who believe in the principles of providing quality educational services to the youth of Massachusetts. We’ve raised the standards in the industry and we’re bringing a new way of educating young people to more and more communities throughout the Commonwealth.”

“This is the most competitive educational environment for high school students applying to college in our history. Students need every advantage they can get to help them get into the college of their choice. We provide very high quality tutorial services, as well as the most unique and successful methods of helping them raise their SAT and ACT scores,” he added. “Now, as we expand, we’ll be able to help even more students throughout Massachusetts achieve their goals of getting accepted into the college they most want to attend. We’re proud of what we do, and we’re particularly proud to be able to help more and more students as we continue our expansion.”

Mathnasium was ranked seventh by Entrepreneur magazine in the category of Top New Franchises, the highest of any franchise education concept. The Los Angeles-based Mathnasium was founded in 2002 to provide supplemental math instruction. The primary driver of Mathnasium’s instructional success, according to Larry Martinek, Mathnasium’s founder, president and creator of the Mathnasium Method, is its unwavering focus on teaching children math in a way that makes sense to them. The Mathnasium Method includes a curriculum of more than 7,000 pages of worksheets, oral explanations, visual and tactile examples, and instructional tools. Franchisees, center directors and instructors receive comprehensive training in the Mathnasium Method. They also get special materials and instructions on how to personalize the curriculum for each child.

Mathnasium has approximately 150 franchise locations and expanded to Mexico earlier this year, and has 60 locations outside of the United States in 12 countries. “We expect 2008 to be a pivotal year for us,” Markovitz said in a statement. “Our progress in the Entrepreneur rankings continues to validate our franchise concept.”

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