Innovatus FET College (Pty) Ltd
Presentation to Prospective Franchisees
Presented by: Kay Naidu
MBL; B Com; TQM; E-Com; ICDL;
Assessor; Moderator; Design
Innovatus FET College – An Introduction
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Company
History and
Profile
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Private college – trading company - established 2009
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Registered as a school – Department of Education – hence
VAT exempt
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Company registration: 2007/013655/07
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5 campuses plus head office
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Core offering – Further Education & Training (FET)
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Key competitors – public FET’s
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30 full time staff (permanent contracts)
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Fully functional & capacitated head office
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Accredited and registered
Innovatus Campus (Pty) Ltd
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Company
History and
Profile
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Franchisor Company – Registration No: 2011/143061/07
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Vat Registration (SARS) – in process - 80 potential sites
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Approved – Franchise Association of South Africa
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Franchise model designed as follows:
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low cost provider
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100 seater campus (to start – can expand
once fully established and profitable
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easy entry into market (turnkey)
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designed for success & national expansion
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franchisee core focus – finance
Profile – Chief Executive Officer
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Kay Naidu
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24 years private education experience
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Experience – FET / HET / SETA Landscape
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Exceptional track record – accreditation and registration
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Education – MBL; B Com; TQM; E-Com; ICDL; Assessor;
Moderator; Design; Auditing Quality Management Systems
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Umalusi Monitor & Evaluator (400 colleges) – accrediting
body for Further Education and Training
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CHE Evaluator and Monitor – accrediting body for higher
education and training
Why we have gone the Franchise Route?
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Motivation for
Franchising
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National expansion & increases company capital
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Lack of private equity in South Africa (predominantly food
franchises on offer)
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Current niche in the private education market
- Competitor B (48 campuses)
- Competitor D (28 campuses in total)
- Competitor M(22 campuses in total)
- Competitor P (70 campuses)
- Competitor I (Tuition schools) – legality??
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Innovatus – designed to fill market niche
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s
Core Franchise Details
• Cost
Implications
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Current Price = R741,000 including VAT (R650K excluding)
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Price includes full setup + accreditation + registration
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Full training / support / monitoring from start to profitability
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Royalties = 10% of monthly turnover
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Premises – to be procured by franchisee (in conjunction with
guidance and support franchisor - 180 - 250 sqm preferred)
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Shelf Company – provided by franchisor
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Key staff – campus principal
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Standard furniture and provisioning
Our Obligations to Franchisee
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Franchisor
Obligations
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Site selection (assistance; guidance; negotiations)
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Full campus setup and installation
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Accreditation & registration (DHET; Umalusi; MICT: FASSET)
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Human Resources needs – on start-up
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Marketing and Student Enrolment
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Franchise Operations Manual (FOM)
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Policies and Procedures Manual (PPM)
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Full education and training – how to run & manage FET
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Annual Finance / Budget Plan + Campus Audits
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Annual Strategic Meeting
Management Information System
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MIS – centrally
filed at Head
Office
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Student academic records – HO + DHET
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Student financial records – Pastel
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Payroll – Pastel Payroll
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Daily Student Statistics
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Campus Reports (weekly)
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Student enrolment records
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Participation rates
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Drop out rates
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Employment placement
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Onsite and offsite backup
Qualifications & Learning Programme
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Course
Offerring
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Teaching
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Policing
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Human Resources
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Marketing Management
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Public Relations
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Business Management
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Accounting & Bookkeeping
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Information Technology
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Financial Management
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Tourism and Hospitality
Accreditations & Registrations
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Accreditations
& Registrations
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Umalusi Council (N4; N5 and N6)
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Umalusi Council (NCV Programmes)
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MICT SETA ETQA (IT Programmes)
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FASSET SETA ETQA (Accounting & Bookkeeping)
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Registration – Dept. of Higher Education & Training (DHET)
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Exam Centre – Department of Education (DOE)
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Over 30 programmes in total
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Accreditation and registration timelines – critical to startup!!
Teaching and Learning
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Instruction &
Delivery
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Fully qualified and experienced staff
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Staff development programme
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Performance appraisals
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DHET Exam training
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Academic Calendar Rollout – Training
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Portfolio of Assessments / Evidence (HO Quality Assured)
Premises & Facilities
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Premises and
Facilities
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3 to 7 year lease preferable / recommended
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4 theory rooms (20 seater each)
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1 computer room (20 seater)
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100 seater campus
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Approximately R 6 million turnover (at capacity – excluding
SETA tenders and projects)
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Health and Safety (HO)
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Premises = ID of Provider - accreditation
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CBD / Central town preferred (bus / taxi / train) routes
Equipment & Learning Material
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Equipment &
Learning
Material
External publishers (where applicable – but we moving to
more cost effective solutions)
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Innovatus internal material (cost efficient)
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Compiled by internal professional experts & academics
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Updated annually
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Charged separately to franchisee (per students)
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SETA approved (where applicable)
Critical success factors – Franchisee!!!
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Critical Success
Factors
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Proposed start date of college
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Applications – accreditation and registration
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Franchisee requirements for DHET application
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Campus Principal + front office person
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Local campus marketing
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Student enrolments on start-up (strike rate) – we get an
average of 1000 enquiries per small campus)
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Premises location; lease and setup
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Implementation of the franchisor model (campus)
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Costs (keep to a minimum)
Industry Specific Information
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FET Industry
FET appeal = 800 000 potential matriculants (500 000
university refusals)
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New matric (NIC & NASCA – Umalusi)
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School leavers from Grade 9 (larger market)
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FET – getting strong attention – government
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FET – extensive media reports
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Many new providers + many closing down (1st 3 years are
quite difficult for new providers)
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Education a boom business - 100 to 150 years
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Good industry – committed business person
The process….from here…
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If interested:
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Request for meeting – Head Office - KZN
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If proceeding - sign agreement - effect payment
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Accreditation and registration application
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Premises selection and lease
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Campus installation
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Staff and management training
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Marketing plan / strategy and implementation
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Accreditation and registration visit
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OPEN FOR BUSINESS
THE END!!!
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THE END
Questions, Queries and Comments !!!
Thank you!!!