FAQ

Franchising

Franchising is a method of growing a business through expanded marketing and distribution.

Business format

Business format is a type of franchise that includes a product or service and is also a complete method which conducts the business.

Franchise

Franchise is a license that describes the relationship between the franchisor and the franchisee including the use of trademarks, fees, support, etc.

Franchisor

Franchisor is the company owning/controlling the rights to grant franchises to potential franchisees.

Franchisee

Franchisee is a person or entity to whom the right to conduct a business is granted by the franchisor or licensor.

Franchise fee

Franchise fee is the amount of money paid, for the rights to do business under the franchise name, by the franchisee to the franchisor.

Service Charges

Service Charges in addition to the franchise fee, the franchisor usually collects an ongoing franchise service fee from the franchisee, the regular payment made by the franchisee to the franchisor is usually based on either a percentage of the franchisee’s gross revenue or fixed amount of the franchisee’s gross strength of the student.

Franchise Agreement

Franchise Agreement is the legal written contract between the franchisor and the franchisee.

What business qualifications does LAPS seek in its potential campus franchisees?

The following qualifications among others are essential for a LAPS School franchise:

  • Enjoy working with young children
  • An entrepreneurial spirit and strong desire to succeed
  • The ability to manage finances
  • A willingness to personally devote full time with best efforts to the day-to-day operation of the LAPS School
  • A willingness to complete a comprehensive training program and become proficient in all aspects of operating a LAPS School
  • Committed to the cause of providing good quality education for young children
  • You do not need any prior school experience to start a LAPS franchise.

How much space does it take to start a LAPS Campus franchise?

You need to have a minimum of 11 class rooms (3000 sq ft) or more on the ground floor with an open play area to match a residential location. Independent access, attached wash rooms, adequate parking facility on the road and good ventilation are the other mandatory requirements. As a general rule the bigger the area the better the chances for securing the LAPS School franchise.

Do you provide help for the franchisee in finding suitable location to start the campus?

Yes, we do. Once you sign the MOU, our team assists you in evaluating the market and identifying an appropriate location for your campus.

Is it compulsory that the land should be owned?

No, it is not.  You may rent / lease it.  The rent / lease has to be irrevocable and for a minimum franchise agreement period (10 years).

What is the availability of opportunities in my area?

The availability of franchises in specific geographic areas must be discussed with the LAPS franchising team in the concerning area/territory in which you have interest.

Do you grant exclusive Areas/territories?

We believe that our model is robust enough to be able to be operated successfully in a wide variety of locations and demographics. It would be nearly impossible to create a set of one-size that fits in all sizes and shapes. For example, one city might be able to easily accommodate 5 schools in a 10 km radius, while another suburban town could accommodate 2 schools and yet another area might only be able to accommodate a single school over 3 or 4 towns. It is important that both our associates and we should have the freedom to grow without any friction and tussle and make decisions based on information provided on a case-to-case basis. However, we do give you an exclusive radius of 2 kms within which we shall not open another LAPS campus.

Can I start a LAPS campus in the same location or in the City Centre to act as feeder campuses for LAPS?

Sure, you can.  However, you will have to sign a separate agreement for each LAPS location.

I want to open and run a school, but I am not sure about the level of the campus either Pre-School or Primary or Secondary School?

We suggest that you should start with a Middle School. Because there is an emerging demand of a quality Middle School in the market. If you input your untiring efforts in making the base of these young future stars strong, there is no reason that you may become a market leader in near future. These schools are more productive and easy to operate as compared to other levels.

Which is the best time to open a LAPS school?

It is always a good time to start a Middle School. In Middle School, admissions continue throughout the year.  The best time is November to April.  Also, if Middle School becomes operational earlier, more number of parents will become aware of it.

How many students can the campus expect?

It depends. Breakeven will depend on geography, competition, investment, site location, size, your local market, your advertising & promotional efforts, your working acumen, current economic conditions and how well you run your school according to the specified LAPS Standard Operating Procedures and so many other factors.

The charismatic and reputed name of LAPS has the power to attract as many students in 1st year of the operations as required to pass the breakeven.

Can I run more than one franchise brands?

Yes, you can.  But we strongly advise you not to start with two different brands because you will not be able to give full attention to both at the same time.  You had better go with one brand at least for 6 months in beginning.  When one brand reaches its breakeven, you may go with the second one.

How much does it cost to start a LAPS School franchise?

Typically a new school franchise will cost about PKR1.86/- Million to PKR2.5/- Million for Preschool and PKR3.7/- Million to PKR4.5/- Million for Comprehensive School.   This cost includes the cost of ambience, equipment and start up franchise fee.

The initial investment amount is decided after studying the potential of the area, the number of students the campus is targeting and the fee structure that can be expected. Based on this, we do a reverse calculation to arrive at an investment amount. In addition to the above mentioned factor, a certain amount has to be invested in advertising and for the working capital for the dry period expenses.

Why is there a large cost variation?

Each potential location is different and has different characteristics. The size of Land, dimensions, location, economic status of the area, density of population etc. can ultimately affect the total cost. The exact amount of investment will be decided after a market study of the paying potential of the local area and what other schools are offering and charging.

We are considering a low investment initially and wish to expand slowly based on the response. Is it possible to start with a low investment?

Yes it is.

Are there any other hidden costs?

Absolutely not, we have transparent policies and there is no hidden cost.

What are the types of fee involved in the Franchise?

You need to pay a non-refundable Initial Franchise Fee at the beginning of the Franchise term.  On a monthly basis, you are required to pay service charges that are Rs350/- per student.

How much is the Franchise fee for each level & period?

The franchise fee is a one-time payment depending on the location and level. Normal franchise fee is as under;

 

1 Secondary Level (Reception to Matric) Number of  Classes (13) PKR800,000/- 10 Years
2 Middle Level (Reception to VIII ) Number of  Classes (11) PKR700,000/- 10 Years
3 Primary Level (Reception to V ) Number of  Classes (8) PKR600,000/- 10 Years
4 Pre-School Level (Reception to One) Number of Classes (4) PKR500,000/- 10 Years

I currently own a campus. Is it possible to convert it into a LAPS franchise campus and what is the fee payable?

Yes, it is. You are welcome to join us and convert your existing campus into a LAPS franchise campus. Normal franchise fee  is 50% of Network Associate Fee for each level.

What fee will be charged from the parents?

Our fee structure consists of the Registration Fee, Admission Fee, Annual Charges and Monthly Fee. We do not have a fixed fee structure because the cost structure (population, paying capacity, salaries, real estate costs, local market conditions, running expenses, cost structures amount of investment done) varies between city to city and within cities as well. Similarly, on the revenue side, the paying potential is different for different areas. So, we fix the fee in consultation with the franchisee keeping in mind all the above factors. The right fee can be set with the combination of our experience and your local knowledge.

Where is the Franchisee training done?

The training is conducted on the site as well as at the Head Office.

How much does the training cost?

The cost of the initial training is included within the Franchise Fee. The expenses of the only uncovered items like travel, accommodation and food expenses will be borne by you. Further trainings may be chargeable (depending on the nature).

What kind of trainings will LAPS provide for a franchisee?

LAPS trains the qualified Franchisee in the areas of Academics and Administration i.e. curriculum plus delivery method and business strategies for owning plus operating a successful LAPS franchise respectively. In addition to this, franchisees also take part in our continuing skill enhancement programs.

How soon can I recover the capital invested?

You can recover the invested capital from the 2nd Operational Year.

How much money will I make?

According to the researchers / feasibility study the profit margin in education sector is far higher than that in any other sector.

LAPS franchise model always supports the Franchisee to start campus with the minimum possible money/investment.

LAPS believes in reinvesting the earned money in order to reach the breakeven as earlier as possible and then profitability which leads to drawing.

Is the agreement renewable?

Yes, it is.  You can renew the agreement. It is valid for 10 years.

Who will sign the franchise agreement from our end?

The agreement will be signed by your all partners (if it is Partnership) or proprietor (if sole proprietorship) or Chairman of the Company / Society / Trust along with a copy of a resolution confirming the approval of it.

What are the obligations of a franchisee in case he/she does not want to continue after the period of agreement?

In case you do not wish to continue after the period of agreement you shall not be allowed to use our brand name, curriculum, our school system & support, proprietary software’s and other material related to the day-to-day operations.

What kind of support is provided for the franchisee before launch of the campus?

We provide a comprehensive 5-tier support system that will ensure mutual growth and success to our franchise units.  Assistance will be provided in various forms such as:

  • Personalized Support
  • Recruitment & Training
  • Marketing Guidance
  • Academic Research & Development
  • Systems & Quality Control

What kind of IT supports is given for the franchisee?

We have Enterprise Resource Planning (ERP) system, which is an online campus management program that is used for the day-to-day campus operations.

What form of continues operational guidance will I receive?

We have a campus support team to provide guidance for our business partners for infrastructure set up, class observations, curriculum implementation, for quality check and conducting training programs for teachers at regular intervals.

Do you provide supplies such as books, uniforms, equipment’s for the campus?

Yes, we do.  We provide you with books, worksheets, curriculum, study materials, uniforms and equipment. We have our own warehouse and with the help of our logistics management team, campus will be provided with all the required supplies.

Will you help me in the construction of the building?

Yes, sure we will. The construction of the school will be as per the specifications of our architect.

Will LAPS provide the qualified teachers? What would be the remunerations of the staff?

The quality of staff will have a great impact on the quality education offered in the school. Hence, it is important that we personally supervise the recruitment process to attract the best possible talent. The teachers and other staff have to be recruited at local level and we shall provide you with assistance at the time of recruitment and training of the staff. The number of staff members depends on the response to the admissions. Their salary will be as at par area trend and fee scale of the school.

How will I learn to run my campus?

Apart from the manuals, we conduct training programs for all our campuses. The experts from the Corporate Sector put forward their experience to provide support and guidance with respect to teaching methodologies, running a campus etc. These training sessions allow us to communicate with all our campuses about various campus issues and operational improvements.

Does the campus require a license?

Yes, it does. The campus requires registration / affiliation with PEC / BISE of respective area.  We shall guide you through the process.

What will happen during this period?

During this period, you will obtain the furniture, attend your training programs and obtain other educational equipment. At the same time, pre-marketing will be conducted in your area using various forms of advertising media and you will be making preparations for the implementation of the Marketing Plan designed by our marketing staff for your school. We will manage this process with checklists and active support, in order to get you started as soon as possible.

How soon can the campus be in operation once I have been accepted as a franchisee?

The campus can be operational within 30 working days.

Can I offer additional services at the campus location such as sports coaching, tuitions and hobby classes?

Some of these are wonderful “value-added” services. If you have the space in your location for these services and you are licensed to provide them, you may go ahead with our permission. We reserve the right to approve/disapprove of any proposed additional services which require all applicable licenses.

How much involvement on my part as a franchisee is needed in the campus?

It is the responsibility of the hired Principal to conduct the managerial work and day to day communication with us.  As far as your involvement is concerned, you may supervise the campus.

How do I get more detailed information?

Call at:   Sales Representative: 0321-8864466
Jamshed Ali Khattak, Regional Director (KPK): 0321-9400533
Customer Relationship Officer: 0320-7889151

Or Email at: franchisor@laps.edu.pk

Or visit at:     LAPS Franchise Head Office

547-K Opposite Cotton Craft- Gate No.3, Canal View Housing Society, Thokar Niaz Baig, Lahore, Pakistan.

Ph # 042-35294651-2

Or URL at:    www.laps.edu.pk/franchise