Details of the franchise model

1. Franchise Model
[Partner with IITians for Engineering Entrance Coaching]
[08-08-2011]
[An analysis of the opportunity to partner with Quest Tutorials as a franchise partner. In the following pages, you will
understand the size of the opportunity, information on Quest, requirements for franchisee, franchisor support and
detailed financial model for a partner centre.]

2. Test Preparation Market in India
 Total market size of Test Preparation sector in India is estimated at
Rs. 18,000 Cr.
 With a growing economy, more and more students are getting
enrolled in schools and colleges for education.
 There is an annual increase in the number of students seeking
admission in professional courses through entrance exams.
Science Students
Engineering Entrance Pre Medical Entrance (PMT)
Subjects Physics, Chemistry, Mathematics Biology, Physics, Chemistry
Tests IITJEE, AIEEE, BITSAT, State level AIPMT
Total students (XI +XII) 30 lakhs + (15 lakh+ annually) 4 lakhs (2 lakhs annually)
Average fees Rs. 40,000 per annum Rs. 40,000 per annum
Market Size Rs. 12,000 Cr. Rs. 1600 Cr.

3. Commerce Students
Chartered Accountancy Company Secretary BBA / Law Entrance
Subjects Accounting, Economics, Accounting, English English, Maths, Reasoning, GK
Math, Mercantile Law Economics, , Law, IT
# of aspirants 2.5 lakhs annually 2 lakhs annually 1 lakh annually
Tests CA-CPT CS Foundation CLAT
Average fees Rs. 15,000 per annum Rs. 15,000 per annum Rs. 12,000 per annum
Market Size Rs. 300 Cr. Rs. 300 Cr. Rs 120 Cr.
Graduate Students
MBA Entrance Engineering Services Civil Services
Subjects English, Maths CS/EE/ME English, Maths, Reasoning, GK
# of aspirants 2.5 lakhs annually 4 lakhs annually 3 lakh annually
Tests CAT/XAT/SNAP/MAT GATE/PSU/IES CSAT
Average fees Rs. 20,000 per annum Rs. 15,000 per annum Rs.30,000 per annum
Market Size Rs. 500 Cr. Rs. 600 Cr. Rs 900 Cr.

4. Opportunity in Engineering Entrance coaching
(IITJEE, AIEEE, BITSAT etc.)

5. Engineering Entrance Coaching (IITJEE, AIEEE, BITSAT etc.)
 Largest among all coaching opportunities (Rs. 12,000 Cr.)
 Many small fragmented teachers/tutors running institutes with
unstructured course material and bad delivery standards
 Tremendous demand for good coaching, due to high competition
for admission to good colleges/course
 Big brands are limited to Kota & Delhi, Hyderabad
 Changing patterns of competitions are creating demand for
upgraded coaching facilities.
 Entrance exams are becoming computer based (CAT, BITSAT, AIEEE
etc.) leading to a need to have online testing platforms

6. Quest Tutorials
Fastest growing brand for IIT JEE coaching in India.

7. Founded by IITians in 2002
Praveen Tyagi Gaurav Mittal
 MS (CS) Univ. of Alabama, BE (Civil) IIT Roorkee  MBA IIM Lucknow BE(E&C) IIT Roorkee.
 Worked in Oracle (California, USA) and Brience  Worked with J Walter Thompson, Zensar
Inc (San Francisco, USA) Technologies and Career Launcher

8. Maximum Media Coverage
 Quest and its promoters, Praveen Tyagi & Gaurav Mittal have the
maximum media coverage among all coaching brands in India:
o Interviewed by Shereen Bhan in ‘Young Turks’ in CNBC-TV 18 in
2006
o Interviewed by NewsX in 2009
o Covered in Times of India, Economic Times, Indian Express,
Pioneer, Telegraph, Asian Age, Telegraph and many more
national dailies
 Advertisements have come out in The Times of India, the Hindustan
Times etc.
 Radio campaigns have also been played on Fever 104.

9. Biggest online presence
 www.questtutorials.com has the fastest growth among all
coaching brands in India. 15000 unique visitors every month.
 Quest is among the top 3 websites when searched on Google for
‘IIT JEE’Coaching
 Social Media: Quest has the largest community on Facebook.com
(http://www.facebook.com/IITJEEhelp) with a fan base of 50,000+
 Direct ‘online’ coaching to students all over India through internet
 Online testing: (http://tests.questtutorials.com/) Students can
practice with immediate comparative assessment. BITSAT is
computer based. AIEEE is going to become computer based.

10. Course material – Power Coaching
Published by Westland Books, a Tata company
 Based on the ‘New IITJEE Pattern’
 India’s 1st ‘Time managed’ IIT JEE course material
 Over 2400 pages with over 9500 problems, 1400+ solved examples,
3800+ objective problems, 4200+ subjective problems for practice
 Entire course in workbook format to measure progress regularly

11. Counselling
Our counsellors are rigorously trained to help students and parents
take a well informed decision about their life and career.
 Mentoring: Motivating the students with information on
opportunity in a particular career. Help them in time management
and self study.
 Parents: Parents’ involvement is critical towards the success of a
student. However, it becomes difficult for most parents to take
time out and collect information on careers, competitive exams and
study methodology. Whenever needed, our counsellors visit the
house of a prospect and offer counselling.

12. Student Centric Programs
 Focus on performance in school as well as competitions.
 Testing: Chapter Tests, Phase tests & Test Series
 Tracking student progress: Class attendance, Test performance
with comparative analysis
 Regular tracking of ‘study at home’ by the student
o Textbook reading, Assignment completion
 Feedback to parents:
o Absence is reported to parents immediately
o Report of student progress on telephone
o 1-0n-1 interaction with academic in-charge (twice an year)

13. Scalable systems
Our teaching methodology makes the program quality independent of
any single faculty.
 Programs are broken down to every lecture, with well defined
objectives.
 At any point in time, we can train and deploy teachers from a wide
pool of available school instructors, while delivering high quality
education. Teachers are provided the following:
1. Teaching notes
2. Power Point slides (if needed)
3. Time table

14. Program Details
 2 Year Program for Class 11 (XI)
o School syllabus for Class 11 (XI) & 12 (XII)
o IIT JEE Level problem solving
 1 Year Program for Class 12 (XII)
o School syllabus for Class 12 (XII)
o IIT JEE Level problem solving
 1 Year IIT JEE Coaching Program for Class XII Pass
o Revision of School Level syllabus for Class 11 (XI) & 12 (XII)
o IIT JEE Level problem solving
 Crash Programs

15. Franchise Facts

16. Franchisee Profile
 Dynamic & ambitious entrepreneurs with passion for education
 Prior business experience is of definite advantage.
 Post graduate, MBA preferred.
 Full Time Commitment: You have to be totally involved in business
operations.

17.  Investment: Rs. 20-25 Lacs. This includes Rs 7 lacs as franchising
fees to Quest Tutorials. Annual renewal fee: Rs 75,000.
 Royalty: Quest charges a royalty of 20% on the fees received.
 Course Material: We offer the 'Power Coaching' course material at
substantially reduced rates.
 Space requirement: 2000 sq. Ft to 3000 sq. ft. (2-3 classrooms with
a seating capacity of 50, counselling area, reception etc.)
 Minimum business guarantee: Every franchisee has to guarantee a
minimum volume of business at a centre, failing which Quest has
the right to terminate the franchise

18. Support from Quest

19. Training: Product
 Competitor analysis, Comparative product analysis, detailed
understanding of the course material & programs
 Engineering & medicine as a career, Information on different tests
IITJEE, AIEEE, AIPMT, AIIMS: number of aspirants, success
percentage, exam format etc.
Program details of Quest. Suitability to the changing pattern, ‘Power
Coaching’, Online testing, IITJEE/AIEEE coaching combined with school
tuition,

20. Training: Academic Operations & Administration
 Attendance capture, reporting and feedback
 Student performance capture, reporting and feedback,
 Meeting with parents and feedback
 Batch scheduling, extra class scheduling etc. (if needed)
 Accounts: Fee collection, regular reporting to HO
 Material inventory and management
Academic Systems support
 Teaching notes and/or Slides for presentation in class.
Faculty support: Quest will help in hiring and training the faculty
members, as and when needed.

21. Training: Sales & Marketing
 Counselling, Telemarketing & Sales, Presentation to students and
parents
School activities & student contact data collection
Marketing support
 Marketing Collateral: Designs for boards, Banners, Pamphlets,
mailers, brochures, presentations etc.
 Online support: Online lead generation, centralized data sourcing
Operations Manual
 This contains guidelines on Sales, Telemarketing, Workshops,
Academics, Administration etc.

22. Why a ‘Quest’ franchise makes perfect business sense?

23. 1. Market Leadership
Quest Tutorials is the only IITJEE Coaching brand with a successful
franchising model. Likely to become a national leader by 2013
2. Cash breakeven in the 1st year
Typically, breakeven is achieved in the 1st year of operations.
Within the next few months you can start taking home the
profits.
3. You earn respect, which is priceless.
Nothing gives you respect in society like education. You help
make careers and earn respect of students and parents, alike.
Success stories are credited to you.

24. Terms and Conditions
1. The Company shall provide you with complete technical know-how, marketing know-how,
procedures, etc. in forms of manuals.
2. All costs towards local promotion shall be borne in by the franchisee.
3. The franchisee shall guarantee some minimum business at the centre, failing which the
franchise can be terminated by the franchisor.
4. A royalty of 20% on monthly collection shall be charged on a monthly basis.
5. Every affiliate shall pay a fee of Rs. 750/- per month on account of financial audit conducted
by a Chartered Accountant firm deputed by the Company.
6. Course material is charged extra from the affiliate.
7. The Company shall send its executive(s) to every centre to look after the various aspects of
day to day running of the Centre.
8. The start up kit shall consist of all promotional material and the stationery required for
the launch of the centre.
Note: All the financial projections are taken on our experience accumulated over a period of 8
years. However, the result might differ from person to person or place to place.

25. Associate with the best, associate with Quest Tutorials!!
Contact Information
Website: www.questtutorials.com Email: info@questtutorials.com
Praveen Tyagi: +91-9811867955, prtyagi@gmail.com
Gaurav Mittal: +91-9811200480, gauravmgm@gmail.com
Regd Office: #363, Sector A, Pocket C, Vasant Kunj, New Delhi.
Office: Kalu Sarai: 44 C Basement Kalu Sarai

26. Financial Model with projections

27. Investment requirement for an Affiliate Centre
Heads Amounts Rs.
Franchise Fees (One Time) Rs. 7,00,000/- + 10.30% Service Tax 7,72,100
Infrastructure (1500-2000 sq. ft.) includes partitions, tables & chairs, ACs,
electrical work, interior etc. 3,00,000
Laptops, Printer, Projectors 3,00,000
License softwares (to be spent over one year) 50,000
Start up Kit 51,000
Attendance Machine (to be installed at every centre) 15,000
Launch expenses 1,00,000
TOTAL 15,87,100
Renewal Fee (Every Year) at Rs. 75,000/- + 10.30% Service Tax 82,725
Note: This investment may be saved on an access of ready infrastructure. Our executives / managers shall
also help you in development of infrastructure.
Sale of Prospectus will be done at Rs 100/- per admission. This will include the cost of silver card to be
issued to every admission.

28. Program Fees
2-Year program (Total fee: Rs. 1,40,000/- )
 Admission Fees 14,000
 Infrastructure Fee 21,000
 Examination Fee 11,200
 Course material 9,800
 Tuition fees Fees (in Rs.) 84,000
1-Year program (Total fee: Rs. 90,000/- )
 Admission Fees 9,000
 Infrastructure Fee 14,500
 Examination Fee 7,200
 Course material 6,300
 Tuition fees Fees (in Rs.) 52,000
*This does not include the Service Tax component.
These figures are MRP. There will be discounting done on the basis of the scholarship test, etc.

29. Estimated Revenue: Year 1
Admissions Total students Remarks
Month 1 – Apr 25 25 11/12 admissions start
Month 2 – May 20 45
Month 3 – Jun 20 65
Month 4 – Jul 25 90 12 pass admissions start here
Month 5 – Aug 25 115
Month 6 – Sep 15 130
Month 7 – Oct 5 135
Month 8 – Nov 5 140
Month 9 – Dec 5 145
Month 10 – Jan
Month 11 – Feb Preparation for exams
Month 12 – Mar Exams in progress
Total 145 145 Total Batches = 4
Total Fees Collected 58,00,000
Franchisee Share (80%) 46,40,000

30. Estimated Revenue: Year 2
Admissions Total students
Month 1 – Apr 25 125 (Continuing from Year 1 = 100)
Month 2 – May 20 145
Month 3 – Jun 20 165
Month 4 – Jul 25 190 12 pass admissions start here
Month 5 – Aug 25 215
Month 6 – Sep 15 230
Month 7 – Oct 5 235
Month 8 – Nov 5 240
Month 9 – Dec 5 245
Month 10 – Jan
Month 11 – Feb Preparation for exams
Month 12 – Mar Exams in progress
Total 145 245 Total Batches = 7
Total Fees Collected 98,00,000
Franchisee Share (80%) 78,40,000
After discounts, the average fees received should be Rs.40,000/- per students per year

31. Estimated expenses: Year 1
Total Administration Cost (A) 4,89,000
Rent @20,000 pm 2,40,000
Electricity &Telephone @ 10,000 pm 1,20,000
Postage, courier and misc. @ Rs. 10,000 pm 1,20,000
*CA Fees @ Rs. 750/- pm 9,000
*Salary (B) 4,20,000
Centre Manager @ Rs, 15,000 pm 1,80,000
Counsellor @ Rs. 8,000 pm 96,000
Marketing Executive @ Rs.8,000 pm 96,000
Peon @Rs. 4000 pm 48,000
Total Academic Cost (C) 16,25,000
Teaching cost @ Rs. 500/hr 9,00,000 450hrs/year/batch
Courseware @Rs. 5000 per student 7,25,000
Marketing & Promotion (D) 3,00,000
Total Costs (A+B+C+D) 28,34,000

32. Estimated expenses: Year 2
Total Administration Cost (A) 4,89,000
Rent @20,000 pm 2,40,000
Electricity &Telephone @ 10,000 pm 1,20,000
Postage, courier and misc. @ Rs. 10,000 pm 1,20,000
*CA Fees @ Rs. 750/- pm 9,000
*Salary (B) 4,20,000
Centre Manager @ Rs, 15,000 pm 1,80,000
Counsellor @ Rs. 8,000 pm 96,000
Marketing Executive @ Rs.8,000 pm 96,000
Peon @Rs. 4000 pm 48,000
Total Academic Cost (C) 28,00,000
Teaching cost @ Rs. 500/hr 15,75,000 450hrs/year/batch
Courseware @Rs. 5000 per student 12,25,000
Marketing & Promotion (D) 3,00,000
Renewal Fee (E) 82,725
Total Costs 40,91,725

33. Expected Profit and RoI
Year 1 Revenue 46,40,000
Expenses 28,44,000
Profits 17,96,000
Investments 15,87,100
Return on Investment (RoI) 113%
Year 2 Revenue 78,40,000
Expenses 40,91,725
Profits 37,49,125
Investments 15,87,100
Return on Investment (RoI) 236%
*Note: These are variable figures and shall depend on number of students.

34. Operational break-even point (Maintenance level)
Total number of students: 65, Fee Collection: Rs. 26,00,000, Franchisee Share: Rs. 20,80,000
Total Administration Cost (A) 4,89,000
Rent @20,000 pm 2,40,000
Electricity &Telephone @ 10,000 pm 1,20,000
Postage, courier and miscellaneous @ Rs. 10,000 pm 1,20,000
*CA Fees @ Rs. 750/- per month 9,000
*Salary (B) 4,20,000
Centre Manager @ Rs, 15,000 pm 1,80,000
Counsellor @ Rs. 8,000 pm 96,000
Marketing Executive @ Rs.8,000 pm 96,000
Peon @Rs. 4000 pm 48,000
Total Academic Cost (C) 8,25,000
Teaching cost 4,50,000
Courseware @Rs. 5000 per student 3,75,000
Marketing & Promotion (D) 3,00,000
Total Costs (A+B+C+D) 20,34,000