Gateway Academy Franchisee




Hi, Welcome to the world of GATEWAY ACADEMY - India. In the pages to follow you would learn about the superb package that awaits you as a potential GATEWAY ACADEMY - India Franchisee.

A closer look at the education sector would reveal to us that this sector is witnessing massive changes and it promises rich rewards both monetarily and socially, to those who are willing to plunge in. A broad consensus exists among the people of this nation that it is only through investment in education that we, as a nation, stand some chance in the days to come. While YOU read this, try to visualize yourself as one trying to provide the best possible training and education to students in your region. This will be your contribution in helping the nation stand firm on its feet.

All the relevant information about our proposed programme is provided here. Please go through this very carefully and evaluate the essential features of the program.

Finally, after you have read the whole stuff, please respond immediately through our email id info@gatewayacademyindia.com. We are sure we can look forward to a long lasting relationship with you. We look forward to a valuable addition to our "GATEWAY ACADEMY FAMILY"

The Opportunity


Life indeed has changed dramatically. New economic policies ushered in by successive Indian Governments coupled with sweeping global changes have had a significant effect on Indian economy too. While in the 1950s, agriculture dominated the Indian GDP, today the service sector accounts for the largest share in the pie. Yes, that's a fact. Industry and Agriculture both contribute less than what the Service sector does. What's more, there is a definite trend that shows more people wanting to make a radical shift towards service sector related jobs. The world over, policy makers have realized this fact and we find changes in governmental mindsets that indicate a ready acceptability for allowing and in many cases, nurturing this shift of population from industry and agriculture towards the service sector.

The "Education" sector with its myriad challenges requires professional competence and dedicated talent to show tangible benefits in terms of taking education to the masses and ultimately making the country's HR more productive. In this context, we can easily see why the "Education and Training Industry" in India is witnessing an unprecedented era of growth, which is one of the highest in the Service Sector. The market for education and training services is becoming increasingly segmented with a growing emphasis on quality, value and customer satisfaction. Within the overall market for education and training services, a number of extremely profitable segments have emerged whose needs are specific and can be served only by experienced and professional organizations. Here, customers (students) are willing to pay a premium provided branded quality is available consistently.

Where does Gateway Academy come in picture?


GATEWAY ACADEMY-INDIA (A Limra group initiaive) has been engaged for more than a year in providing value added education services to these segments with fine tuned product-service offers. A few segments which have shown tremendous increase in terms of value and demand are

Talking in terms of numbers, if the total number of students appearing for say the various GATE entrance examinations alone is taken, it easily exceeds 2,50,000! Similarly, the total number of students taking the GRE/GMAT tests would easily be in lakhs (globally). And these numbers always grow. The education boom has begun and it is here to stay!

GATEWAY ACADEMY'S expertise in these courses, developed painstakingly through extensive in-house R&D , is geared to bring the best returns to its franchisees. Our products and services cater to a vast spectrum of society and ensure that the risk is minimized due to a generally large spread.

There has been a shift in student mindset over the past few years in terms of perceived value of classroom training programs. Our research shows that increasingly, a larger number of students are opting for classroom training programs that help them stay motivated, put in regular efforts and provide a genuine feel of actual competition. GATEWAY ACADEMY'S forte being classroom training; we are indeed the right people at the right time!

The Entrance Training Segment constitutes a huge market; as there is a distinct and acute need for quality training programs conducted by high caliber individuals for these examinations. The only competition is in the form of "disorganized coaching classes" which function on a small scale and have a limited presence. Thus, people like us who believe in doing a professional job are always on the winning side. This service product package has high margins, with relatively low investment / fixed and running costs, if ready-made material and expertise are available.

GATEWAY has extremely well designed, effective and proven training programs for Entrance Examinations, painstakingly developed and fine-tuned to produce results. The associated course material, methodology and expertise provided by IIT/IIM graduates and students, adds to its effectiveness.

Fit for whom?


GATEWAY ACADEMY is looking for high caliber individuals / groups / teams to become their franchisees in targeted cities to conduct these training programs under the Gateway Franchisee Program. Thus, if you are the right type of individual who has an appetite for growth, THIS IS YOUR CHANCE TO MAKE IT BIG!

The field of education will be yours, if

Why franchising?


The franchisee program is based upon a powerful business concept - Business format franchising. According to John Naisbitt, author of Megatrends 2000, franchising is " the single most successful business concept eve." Internationally, the power of franchising is well known. In the US, about 55% of all retail and service sales are through franchises. (Source The Franchise Hand book, 2000). Today, India is also witnessing the power of franchising, especially in the education and training industry.

Thus, franchising helps extend the well-established brands in a particular region to other regions by synergistically exploiting the talents and the investment capabilities of other franchisees. It promises faster growth, rapid chances for business advancement and minimum chances for failure as the product/service/brand is already proven, even if in some other market.

Theoretical info

Basic definitions

According to the International Franchise Association (the IFA) of America " A franchise operation is a contractual relationship between the franchiser and franchisee in which the franchiser offers or is obligated to maintain a continuing interest in the business of the franchisee in such areas as know how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchiser, and in which the franchisee has or will make a substantial capital investment in his business from his own resources. "

The word 'franchise' is derived from the French verb 'franchir' and the more modern verb 'affranchir', both meaning to free (used in this context to express freedom from servitude or restraint.)

Contrary to popular belief, franchising is not an American invention - it first emerged in Britain during the middle Ages when certain high church officials would pay a lump sum to the Government and would agree to provide continuing personal support and services in return for the right (i.e. the franchise) to collect local taxes.

Franchiser The parent company/institution giving out the franchises.

Franchisee The person seeking to accept the business offer.

It is the responsibility of the franchiser to introduce the franchisee to all relevant areas of business operation. The major points in the definition above are

What would you require to be a Franchisee?


The common features of a 'business format' franchisee are


The rapid growth of franchising is due to the following emerging trends

Franchising is seen as providing an excellent route into self employment a consideration which is particularly important in view of the current unemployment figures and the value that is placed on self employment and entrepreneurship in the prevailing social and economic environment.

A further economic benefit offered by franchising is the reduced likelihood of failure. Business failure affects the economy as a whole and anyone who buys or sells in the market place is potentially affected by it.

First generation franchises are undoubtedly important means of product distribution. Nevertheless, when people use the term 'franchise' they are more often than not referring to what has become known as the 'Business Format' or 'Second Generation' franchise

The concept of business format franchising

Under most business format franchises, regardless of whether they are job, business, or investment franchises, the franchisee is provided with a Total Package including initial training in all aspects of running the business, trade marks, logos, a standard design for the layout and appearance of premises, standard furnishing and colour schemes, marketing plans, operating systems, and continuous ongoing advice and assistance once the outlet is in operation. The franchiser guides the franchisee exactly how the business is to be run, including hours of opening, pricing policy, quality of service, sources of supply, hiring and training practices etc.

In most cases the franchisee need not have had any prior experience in that particular field of business because he will be fully trained by the franchiser. All he has to do is to follow the rules laid down by the franchiser and demonstrate the necessary personal commitment and effort.

Important The franchise relationship is largely based on mutual trust and dependence. It is extremely important that both the franchiser and the franchisee realize, before entering into a franchise agreement, that their respective fortunes are inextricably linked.

Pros & cons of franchising

The advantages for the franchisee

Franchising offers the franchisee many advantages in comparison with setting up a totally independent business - some of the most important benefits include the following.

The franchisee starts in business with the use of an established trade name and corporate image, a proven product or service, and the benefit of the goodwill that has been built up by the franchiser. He therefore starts from a much more favorable position than someone who is setting up a totally independent business without any existing goodwill etc. A franchisee will find entry into the market much easier that he would if he were to 'go it alone'.

The franchisee does not usually require any previous experience of self employment or of the particular industry in which he will be operating, since he will receive full training and continuing managerial assistance from the franchiser. The franchise system is therefore an ideal route into self employment for an individual who has little or no relevant experience, as opposed to starting a totally independent enterprise which will usually require some experience or knowledge in the proposed field of business.

The franchiser will provide assistance in locating a suitable site for the franchisee, selection of equipment, appropriate stock levels etc.

Start up costs are often lower for a franchise that for a similar independent business. The initial expenses relating to the launch of the franchisee's outlet are also usually deployed more effectively since the franchiser has the benefit of significant experience in setting up and launching new outlets

The franchisee's operating costs may also be lower as a result of bulk central purchasing by the franchiser, economies of scale in advertising and promotion, staff training programs organized by the franchiser, etc.

The franchisee will benefit from both regional and national advertising which is undertaken by the franchiser on a scale which would be completely beyond the resources of the independent businessman

The franchisee will usually have many opportunities to discuss particular problems, different operating methods etc. with his fellow franchisees in the network on both a formal and an informal basis. He is therefore able to share his problems and learn from the experience of other franchisees.

Many people have a desire to run their own small business rather than be an employee, but either lack an initial idea of exactly what they would like to do, or do not know how to go about setting up their own business. Franchising provides an ideal opportunity for these people, especially since such a large range of businesses are now available as franchises.

Disadvantages of franchising

One of the major disadvantages of the franchise system is that although the franchisee is a legally independent businessman, the franchiser will exert a fairly high degree of control over the franchisee and his operation. This control is however essential in ensuring uniformity and standardization in all outlets in order to maintain the goodwill enjoyed by all participants in the franchise.

The franchisee has a contractual obligation to continue to operate his outlet and the circumstances under which he can terminate the agreement may be fairly restrictive. Furthermore, under the terms of the franchise contract, he may not necessarily be allowed to sell his business to whomsoever he likes - the franchiser will normally reserve the right to vet potential purchasers in order to ensure that they are acceptable to him as franchisees.

The relative importance of each of these advantages and disadvantages will vary between different franchise operations and between different franchisees. In addition to these more common considerations each individual franchise opportunity will have its own specific problem and benefits. Clearly it is important for any potential franchisee to bear this in mind when considering a specific franchise operation.

The solutions to many of these problems lie mainly with the franchiser who should be aware from the outset of the causes of franchisee discontent so that he can take whatever steps are necessary either to prevent this situation arising in the first place, or to implement a system capable of dealing with the problem if and when it occurs.

What the Gateway Academy franchisee gets?


He gets a great chance to explore his potential, exploit emerging market opportunities, and create a niche for himself. Following are some of the tangible benefits:

Be your own boss !

Run your own business with none of the associated risks. It's like entering a race with a map in your hand and the finish line in sight. We increase your chances of success tremendously, to the point where your risk is almost zero. This is possible now as we have already taken the risk , fine-tuned the courses & methodologies and developed better and streamlined programs. Thus, our effort and expertise is put to your direct use.

A unique, proven successful business plan !

We supply you with extremely well designed, effective and PROVEN training programs which have been painstakingly developed and are fine tuned to produce results. The associated course material and methodology are also of the highest order. Remember, we are not talking in thin air. We are not building castles in air. We have actually done the work at the grass root level and we know what it takes to be a winner !

Comprehensive and intensive training before you start !

We will invite you for a Personal meeting, where you will be able to observe a typical day's working at Gateway Academy. This Orientation will be followed by our Comprehensive 15 day Training Module which will enable you to know everything about the business in detail. We will ensure that you are familiar with all aspects of the business and tell you about the various problems you will face, and also their solutions.

Proper systems for all your operations !

You will also get systems for handling all your operations efficiently. Enquiry, registration, fee collection, accounting, advertising and publicity, materials ordering and management procedures and systems for all these and more are contained in the GATEWAY Operations Manual. This document, we proudly claim, is the "Industry Standard" today. We also give standardized structures for fee receipts, registration forms, ID cards etc. so that your effort is minimized. Thus the intensive effort put by a team of professional individuals at the GATEWAY HQ in developing a system-based approach will be directly useful for your business success.

Guidance and help in advertising and promotions !

You get ready made advertisement formats, posters, handouts and promotional plans. The benefits of state level advertising (as and when feasible) will also be available to you. There are standard tips on Seminars and marketing also. This expertise has been developed by us over the years specifically keeping in mind the market requirements of various geographical territories.

Continuous support and development !

Once you start, we will provide continuous support and guidance, 24 hours a day, 365 days a year, whenever you need. Based on research and an analysis of students' needs, the courses and the material will be developed and improved continuously. You, as a GATEWAY ACADEMY Franchisee, will reap the benefits of this process. The support is given through several modes. This includes written training material, e-mail support, telephonic support etc. You'll find that the GATEWAY HQ's support to its franchisees is unparalleled in the industry.

Future development - Sky is the Limit !

As you gain experience, we will give you the choice of adding extra courses and services that we develop. These will be in diverse areas. The aim is to enable you to widen your scope and grow faster by catering to new markets. The base that you grow on will continue to be MBA Entrance Courses, MCA Entrance Courses, Post-XII Courses and GRE / GMAT / SAT / TOEFL Courses. This will be the main source of revenues and as such, should remain the focus of our Franchisees, for the initial few years.

Cutting-edge, comprehensive & scientifically-designed courseware !

We also supply all the material to be given to the students. This includes everything that the student needs from Basic Lectures, Assignments, Tests to the handouts containing information about various examinations. This comes to thousands of pages per student and is supplied to you by GATEWAY-HQ. You will be pleased to learn that our study material is one of the BEST in the nation as on date. It is TOTALLY original and is developed by a team of highly qualified people from diverse fields. This year, we have revised the course once again and have incorporated the latest trends as seen in various actual examinations. And yes, rest assured - GATEWAY's material is better than most of its national competitors. We provide different sets of study material for different courses.

Honesty and transparency - hallmark of our relationship !

We assure you that each and every transaction that you will have with the franchiser (i.e., the GATEWAY- HQ), will be characterized by complete honesty and transparency. The GATEWAY- HQ firmly believes that its success depends entirely on the franchisees' success. This will ensure that you find your stay meaningful, enriching and tension free.

What about the nature of this business?


This is an educational service being provided by GATEWAY to its students. Our liability is limited to providing quality education as specifically written in the Course Prospectus. We do not give any guarantee for selection in any specific institute whatsoever. Our liability is limited to providing quality education as specifically written in the Course Prospectus. We do not give any guarantee for selection in any specific institute whatsoever.

What are the fixed costs like ?


Initially you pay the Security Deposit, Licensing Fees and Technical Know-how Fees. Then a few items like Library Bookset, Glowsign Board, Starter kit etc. will be required. A detailed list of possible heads of the fixed costs will be given to you before you sign the legal agreement (so you can work out your economics).

What are the running costs like ?


The running costs include cost of promotional material like posters and pamphlets, cloth banners, transportation costs and some other miscellaneous costs. A detailed list of possible heads of the running costs will be given to you before you sign the legal agreement (so you can work out your economics).

Why are the control systems necessary ? And what are these "systems"?


The "Control engine" concept is uniquely developed by GATEWAY for the benefit of all stakeholders like students, franchisees and employees. It stands for Technology Driven Process. This means that all core processes in GATEWAY are documented, standardised, rigorously implemented and audited. This benefits everyone as processes lead to predictable results. Be it classroom delivery of courses, finance management, marketing approach, administrative issues or HR management. This CONTROL SYSTEM is our core, our main driver, our passion and our biggest secret of success. Thus, we insist on a systematic approach to quality creation that leads to students success.

What is the need for such elaborate systems ?


Without these systems, your business will fall apart like a pack of cards! Take our word for it. In this mercilessly competitive world, unless you are having well-designed systems that can run by themselves with just your supervision, there is no way you can succeed. And because of this CONTROL SYSTEM approach, many of our centre has.

Will the GATEWAY-HQ exercise control over my operations ?


Yes. As far as fulfilling the requirements of our systems are concerned, we will be demanding! However, at a personal level, we remain a family and as stated earlier, a "community of equals." There are regular centre audits performed by GATEWAY HQ to ensure that adequate guidance can be provided to GATEWAY centres from time to time to ensure standardization and uniformity of standards across all centres.

Is this business socially respectable ?


The kind of social esteem you get and the amount of monetary gains you can expect are proof enough for the built credibility and success factor. Once you start your business, within a couple of years, you will be surprised to see the kind of recommendations you will get to admit students in your institute! Believe us, there is a lot of prestige associated with this. As we say fondly, there is no other business where young people (students) will come and touch your feet (teacher's) for the value-addition they receive !

What is the upper limit of the money I can make ?


Almost Limitless. Yes. As the business grows, we will keep adding newer courses and modules to give you the maximum returns on your investment. However, please understand clearly that the amount of effort required would also go up proportionately with the addition of more courses. The kind of returns you can expect as a dedicated GATEWAY Franchisee will exceed what you can possibly make over several years in other professions.

What is the Advertising expenditure ?


The local level advertising expenditure is borne entirely by the GATEWAY Franchisee. The GATEWAY-HQ does not participate in that. However, we will provide you with standard artworks, collaterals of all kinds, poster designs etc. We will also advise you about all the aspects of local level advertising. We will indeed expect our Franchisee to spend enough to attract enough. Further specific details will be provided when you are selected by us as our franchisee. National Level advertising is done under the National Brand Building Fund (NBF) for which all centres contribute a fixed percentage. Also note that our website is a great hit with our students all over India, and drives business to all our centres.

These FAQs are indicative in nature. In case you have more questions please feel free to talk to us directly or email us at: info@gatewayacademyindia.com or call on 0091-9895089414


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