Summary

Internationally acclaimed and officially recognised by the Harvard School of Education as well as the European Union Commission, this well established franchise focusses on STEM education and was founded in 2008. It has since operated successfully in more than 50 countries.

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Fully describe the business's activities?

Officially recognised by the Harvard School of Education as well as the European Union Commission, this well established international franchise was founded in 2008 and has since operated successfully in more than 50 countries. Primarily aimed at students between the ages of 4 and 15, the programmes are designed to provide unique STEM (Science, Technology, Engineering and Mathematics) skills, by integrating the basic curricula learned in school with intuitive, active educational processes. STEM skills include, theoretical concepts, practical application of theory, critical thinking, problem solving, data analysis, engineering, physics, robotics, software engineering and coding. There are currently around 280 students enrolled at this centre, and an exceptional opportunity to fully introduce the virtual programmes exists for the new owner.

How does the business operate on a daily basis?

Classes are mainly held at various schools either during school hours or after.

What Advertising/Marketing is carried out?

Apart from their neat and informative website, the business advertises extensively, and very successfully on Facebook and other social media pages. Pamphlets and promotional items are offered at schools and other educational providers, however, stands or stalls at various school and other functions are undoubtedly extremely strong marketing tools.

What competition exists?

There is no competition. The programmes are unique.

How could the profitability of the business be improved?

A hands on owner-operator (especially as an additional facilitator), along with a more focussed and targeted marketing approach, would improve profitability tremendously. A brilliant opportunity exists to fully introduce the online programmes - this will provide more classes and therefore more options for busy students.

How involved is the Owner in running the business?

The owner has relocated and currently manages the business remotely, focusing mainly on the finances of the business.

Territory

The license for the current franchise territory expires in April 2023.

A franchise renewal contract for a minimum 3 years will be payable when the lease expires. This is negotiable with the franchisor.

What are the main assets of the business?

The assets include the programmes, related equipment and props. A full inventory of the assets is on file with Aldes Business Brokers.

Strengths?

This a well-known international franchise operating in more than 50 countries worldwide. There are currently 40 franchises in South Africa. It is a well-established going concern in the Witbank-Middelburg area, with a stable and consistent presence at several schools.

Among the most attractive aspects of owning a tutoring and education service business is that it generates repeat business with recurring appointments and successful results. As such, the lifetime value of each student can be measured in years, not individual transactions.

The programmes and processes are fully recognised by the Harvard School of Education as well as the European Union Commission.
The business has low overheads and massive potential for growth.

Weaknesses?

The business requires a hands on owner-operator for optimal profitability.

Opportunities?

With focussed marketing efforts there are excellent opportunities to increase the number of schools and students. The introduction of virtual classes will significantly boost turnovers.

Education is one of the fastest growing industries in South Africa, and parents and educators alike recognise the importance of investing in this. Furthermore, as the world enters the Fourth Industrial Revolution of Artificial Intelligence and Robotics, students need any advantage they can get to equip them as the workforce of the future.

Public schools are becoming more and more pressured to introduce coding and robotics as subjects, and that is where an established educational franchise is in the perfect position to take advantage of current education requirements.