The Brexit-proof industry?

Once upon a time, prospective franchisees used to look for a 'recession-proof' business.

The Brexit-proof industry?

Once upon a time, prospective franchisees used to look for a ‘recession-proof’ business. After the crashes of 2008, investors became increasingly wary of anything that looked like a luxury concept. Or one that, should the economy shrink, and money become tight, would find its product or services deemed as dispensable by its customers. Today, it’s all about the B-word. And whilst in reality, no one actually knows what a United Kingdom outside of the European Union will look and feel like, many potential franchise owners want to mitigate the ‘Brexit effect’.

Luckily, there is an industry which has remained largely unaffected by political backlash, financial ebbs and flows and economic uncertainty. The children’s education sector is one which has seen greater investment and market demand than perhaps any other in the last decade. In fact, according to the 2018 bfa NatWest Franchise Survey, the number of personal services franchised units – in which children’s services sits – has more than doubled since 2008. It’s an impressive fact, and one that is worthy of note for prospective franchisees.

More and more people are choosing to invest in children’s services franchises, and particularly children’s education franchises, because of their proven robustness and longevity. Far from simply being resilient, there is significant scope for growth as consumer spending continues to increase UK wide year-on-year.

Yes, the economy has certainly been rattled as a result of the seemingly endless Brexit negotiations and ‘leave’ deadlines over the last three years. However, the figures tell us that the children’s education is not an area in which parents are willing to compromise. In fact, quite the opposite is true. Now, more than ever, people are prepared to spend more on their children’s development outside of the classroom. In 2018, the UK market was estimated to be worth $6.3bn and is projected to exceed $9.1bn by 2024. An appealing statistic for anyone looking to invest in a Brexit-proof franchise in 2020.

A 2019 survey from The Sutton Trust revealed that the private education sector specifically, is booming in the UK. 1 in 4 children have received private tuition in the last 12 months and 27% of 11-16-year-olds in England and Wales have utilised private tuition services at some point. This rises to 41% in London (up from 37% in 2014), where children are more likely to have private tuition than anywhere else. It should come as no surprise then, that the UK spends more on private tuition than the rest of Europe. A fact unlikely to change after Brexit.

A testament to the demand in the market, there are currently more tutors than schoolteachers in the UK. The recent Sutton Trust survey also revealed that a quarter (24%) of secondary school teachers have taken on private tuition outside school in the past two years. Two thirds of the teachers who had tutored had done so after direct contact from parents. Proof were it still needed that this is a robust and exciting market that continues to expand in the face of Article 50.

A case in point, Tutor Doctor, the world’s fastest growing in-home tutoring franchise, launched on UK soil in 2009. Over the last 10 years, the brand has welcomed over 70 franchisees to its UK network. And, far from slowing down due to Brexit worries, 2019, saw 19 new recruits join the tutoring giant – marking one of its best years for growth in this country. Education is a worldwide language. Tutor Doctor’s global network of over 680 franchisees in 16 countries continue to capitalise on a demand which is largely unaffected by politics or economics.

There are many things that can affect the success of a franchise in the children’s education sector. The time devoted by a franchisee and their level of commitment to the brand. The ability and willingness to follow a proven model and even the level of working capital available to invest in things like a grand opening and ongoing marketing. About the only thing that isn’t going to affect the success of such a franchise, is Brexit. Food for thought.

This article comes courtesy of Tutor
Doctor
, the world’s fastest growing in-home tutoring franchise. Since launching in the UK in 2009, they brand has welcome over 70 franchisees to its UK network.

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