Unacademy Franchise: Investment Cost, Benefits, and Profit Potential Explained

It may be perturbed for education, and Unacademy is a very successful inventor.

It has been redefined as a platform for what quality education should mean by making it accessible to students who will use it to prepare for competitive examinations, acquire new skills, or venture into new learning paths.

It has also made everything possible for an entrepreneur to invest in such a thriving market through the Unacademy franchise.

The education industry in India is valued at over $117 billion, and ed-tech is high on growth.

An Unacademy franchise combines the essential ingredients of online learning and offline education into a hybrid model, catering to the requirements of students today.

Bearing the franchise, one can expect to meet the education demand in terms of quality access and return on investment while helping the transition into a learning future.

About the Brand/Product

Historical Trace 

Unacademy was formed in 2015 by Gaurav Munjal, Hemesh Singh, and Roman Saini. The idea of the ‘brand’ was freedom and thus quality education reached the homes of all.

It was natively born as a YouTube channel offering free and open educational content.

The great success on YouTube led the journey towards total online platforms with structured courses, live classes, and personalized mentoring.

Milestones

Initial Success: Launching live classes and curated courses on various competitive exams like UPSC, JEE, NEET, and CAT.

Expansion: Inauguration of offline learning centres to form the base for the Unacademy franchise.

Funding milestones: Over $800 million of funding pumped to Unacademy has been by SoftBank, Sequoia, Tiger Global and many other bigger investors.

Current Market Presence

Unacademy is a household name in India, delivering millions of students and thousands of educators.

The extension of this franchise gives wings to Unacademy in online spaces, bridging the gap between the digital universe and the traditional one.

The brand has very good strength in urban centres and plans to venture out further through its franchise model.

Key Details of the Franchise/Product

Category and Brand

The Unacademy franchise operates in ed-tech and has been projected to grow at a CAGR of 30% over the next five years.

It caters to preparation for government exams, school syllabi, and gaining professional skills.

Investment Range

Unacademy franchise costs between ₹50-75 lakhs, which includes the establishment of the franchise, fee payment, and initial operational expenses.

ROI and Profit Margins

Unacademy franchise attains a high ROI with profit margins of 30-40%. A franchisee can expect to earn back the invested funds in 18 to 24 months with effective operations and marketing strategies.

Space Requirements

The franchise requires a space of 2000 3000 sq. ft which should be well connected and equipped with modern infrastructure for creating an engaging learning experience.

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Product/Brand Range

Salient Features

The Unacademy franchise has recognised:

• Competitive Exam Preparation: Courses for UPSC, NEET, JEE, and CAT.
• Academic Coaching: For students from Class 6 to 12, encompassing major state and national boards.
• Professional Skills: Training in coding, communication, and management for professionals.

Unique Selling Points (USPs)

Expert Educators: Access to India’s best teachers and mentors.

Hybrid Learning: Combines online resources with offline guidance.

Innovative Technology: AI-based analytics for personalized learning.

Differentiation in the Market

The Unacademy franchise stands out as having a very strong integration of technology with excellent educators and the learning environment having been influenced by the adaptive methodology, making competitive advantages in the education market.

Franchise/Product Models

Kiosk Model:

Features: It has a very compact layout with only essential resources.

Advantages: One that requires little investment and is ideal for cities and semi-urban setups.

Full-Center Model:

Features: Complete infrastructure with several classrooms, facilities, and so forth.

Advantages: It has a much higher potential for revenue and broader course offerings.

Advantages of Each Model

Kiosk: Cheap and flexible and could be usable in high footfall areas.

Full-Center: If an investor is seeking to develop a larger footprint to accommodate diverse student needs.

Additional Support from Unacademy

Induction and Training

Unacademy offers quite elaborate training programs onboard all franchisees and their staff, including:

• Onboarding of Educator.
• Administration and operation training.
• Technical assistance for online and offline classes.

Promotions and Marketing

The Unacademy franchise gives centralised national campaigns around marketing besides visibility through all digital and traditional channels.

Along with providing promotional materials and social media engagement, the franchisees are given access to event assistance.

Continuing Development

The other continuing support to the brand includes Curricular Content Periodic Updation, improvements in the benchmarking software, and operational guides.

Cost Breakdown

There is a lot to learn about starting a Unacademy franchise in terms of investment. Here is a summary of the major cost components that would help you in your goal:

Infrastructure Set-up: Physical learning centers with classrooms, digital boards, seating arrangements, and other essentials will attract a cost ranging between ₹20 to ₹30 lakhs. This includes expenses for high-quality furniture, attractive decoration, and compliance with Unacademy’s standards.

Digital Equipment: Hybrid learning experiences are dependent on technology. This involves buying laptops, projectors, smartboards, and a reliable internet facility, which would range between ₹5 to ₹10 lakh.

Franchise Fees: For the Unacademy franchise, a franchise fee of around ₹10 to ₹20 lakhs is accompanied. This includes the rights to the brand itself, access to the curriculum, and other resources proprietary in nature.

Initial stock: All teaching aides, course handouts, and the like will require spending around ₹5 to ₹10 lakhs. This is to ensure that you are completely set to begin the operations.

Marketing and Promotion: Unacademy emphasizes local marketing to augment enrollments into new centres. Budget some ₹5-lakh into initial advertising which may include digital promotions, events, and local banners and pamphlets.

So, the investment usually required for starting an Unacademy franchise keeps lying in the range of ₹50-₹75 lakhs; it will all depend on the location of the centre, its size, and the model you are hunting for.

This is going to cover all the fixed and variable costs, so now you can build a proper infrastructure at a place for that big success.

Profit Margins and ROI

Normal Profit Margins

The Unacademy franchise yields profit margins of around 30-40%, which makes it a highly fruitful business. With proper cost control and increased enrollment, margins can further increase.

Payback Period

Investors can recoup their capital within 18-24 months by running operations competently and riding on the popular name Unacademy. 

Long-term Scenario

With steady increases in requirements for quality education, the Unacademy franchise is capable of operating as a sustainable and profitable business model for many years to come.

Space Requirements

Optimal Setup Space

The franchise requires at least 2,000 sq. ft., which shall include:

• Classrooms are dedicated to smart boards and digital tools.
• Administrative offices for smooth operations.
• Storage spaces for odds and ends educational materials. 

Locate the Perfect Spot

Good recommendations would be schools, colleges, and densely populated urban areas, keeping in mind the aspect of visibility as well as the foot traffic.

Benefits of the Unacademy Franchise Investment

You become an Unacademy Franchise Owner and make it available boasts a value proposition of lucrative as well as stable business undertaking in the educational sector.

Below is a comprehensive argument for the wise move in the investment of the Unacademy franchise:

1. Established Branding and Consumer Trust

Unacademy is a household name in the education ecosystem of India that is known for quality learning and innovation.

Joining as a franchisee allows you to leverage the brand reputation and the trust acquired which makes for the elimination of gross brand-building efforts.

The already-established goodwill creates an attraction for students and parents, thereby giving you a head-start in the race of competition in the market.

2. Provision of Proven Educational Resources

One of the eminent advantages that one could find in the Unacademy itself is the resource of entire educational access.

In the way of providing syllabi, pre-recorded as well as live classes conducted by some famous educators of India, your franchisee would be able to create a complete learning experience for their students making the franchise especially competitive and highly desirable to learners.

3. A Hybrid Learning Model

What is unique about Unacademy is the model of hybrid learning combining the online and offline aspects of education.

This ensures that your franchise could cater to both types of learners, those who are tech-savvy and those who are inclined more toward traditional classrooms.

This would mean a wider scope to reach the market and maximize potential market coverage.

4. Franchisee Operations and Training Support

The support offered to a franchisee by Unacademy helps the latter create smooth operations. The supports include:

• Staff Training: A very conducive onboarding and periodic training sessions for your educators and administrative staff to keep them equipped to uphold the high standards of Unacademy.
• Operational Guidance: Regular assistance in operating all day-to-day activities and enhancing the quality of services and student performance.
• Technical Support: Troubleshooting and maintenance for digital tools so that online and hybrid classes are uninterrupted.

Documents Required for Franchise/Product Setup

There are mandatory documents while establishing a Unacademy franchise or any educational business, which make the work applicable as well as lawful.

Mentioned below is an extensive breakdown of the main requirements:

Identity proofs: Government identification documents such as an Aadhar card, PAN card, or passport will have to be provided to authenticate the applicant’s identity through which all legal and financial transactions will be established.

Financial Proofs: Strong financial backing is vital for a successful franchisee operation. The applicants need to provide bank statements for the past 6-12 months and the income tax returns (ITR) for the recent years.

These highlight the economic stability and show the competence to handle the necessary investments and operating expenses.

Business Registration Documents: In the case of entities applying, there should be submission of certificates of incorporation or documents of equivalent status.

These certificates prove the legality of the business and its proof of existence as legal in the country.

Local Permits and Licenses: An education centre would also require some sort of local approval to start this operation.

Depending on the region, such permissions are trade licenses, GST registration, clearances from fire safety, and many others.

How to Apply for the Franchise/Product Investment

The procedure for acquiring an unacademy franchise is quite easy to follow for anyone:

• Initiate an inquiry: Go to the Unacademy official franchise page.

• Preliminary screening: Discuss with the Unacademy team.

• Document submission: Include all required legal and financial documentation.

• Approval: Get approval and sign the franchise agreement.

• Commence operations: Set up the centre and commence operations with the backing of Unacademy.

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Frequently Asked Questions

1. What is the expense of starting an Unacademy franchise?

The investment ranges from Rs 50-75 lakhs depending upon the location, space, and model.

2. How much profit can I earn with the Unacademy franchise?

Unacademy franchise profit margin is 30-40 percent and ROI can be achieved in 18 to 24 months.

3. Does Unacademy provide marketing support?

Yes, Unacademy has integrated marketing support and offers digital and offline marketing campaigns.

4. Can I open an Unacademy franchise in a small town?

Yes, the franchise suits small towns, especially where there is considerable demand for quality education.

5. What type of training does Unacademy offer?

Educator onboarding, administrative operations, and technical tools for conducting hybrid classes.

6. What is the minimum space requirement for an Unacademy franchise?

Space of 2,000 to 3,000 sq. ft. is the ideal requirement with classrooms, storage, and administrative offices.

7. Is prior experience in the education sector a requirement?

No, everything required will be trained and supported by Unacademy, allowing first-time investors to join the space.

8. How do I ensure high enrollments at my franchise?

Select a good location, take full advantage of Unacademy marketing support, and provide high-standard teaching.

9. What courses are provided at Unacademy franchises?

Franchise comprises competitive exams, school syllabi, and professional skill development.

10. Are there any continuous fees apart from the one-time investment?

Yes, franchisees would be required to share a part of their revenue under the royalty fees to Unacademy.

Conclusion

It is a very lucrative and impactful investment to make with an Unacademy franchise. It binds financial success with social contribution: a real winner in this arena.

With a powerful brand reputation, an innovative hybrid learning model, and a comprehensive support system, Unacademy really is setting itself up as a brilliant opportunity in the education industry.

With the mentioned steps, you might as well join the mission of transforming education while building a successful business.