New CBSE rule puts franchisee schools in a fix, fee structure to be under scanner The Central Board of Secondary Education (CBSE) has termed those schools running as franchisee of principal institutes as ‘commercialized models’ in the recently amended by-laws which govern its affiliated schools. The move aims to keep the school education free from commercial franchisee models and to reduce the financial burden on parents arising out of heavy franchisee fees. The order is giving sleepless nights to franchisee schools running in the country under the brand names like Delhi Public Schools Society, Ryan International School Society, Birla Schools, Gems Group, EDIFY and Bal Vidhya Ashram Group, to name a few. The board has cleared that such schools have to provide an affidavit that they have not entered into any such contract to use name and logo of the parent for consideration for their fees. The board has also recommended that such schools should delink themselves from franchisee arrangements. The amended rule said that any franchisee school making payments to its parent institute for use of name, motto and logo or any other non-academic activities would be termed as commercialization of institution. Sources said that parent institutes initially charges ranging from Rs 10 lakh to Rs 25 lakh from franchisees to allow them use their names, logos or brand names. In turn, the parent institutes only support the franchisees in recruitment, setting-up amenities and management of schools. The franchiser has no say in syllabus and course content. A senior CBSE official in Delhi requesting anonymity told TOI, “Franchise model is a sheer marketing gimmick.” Such practice involved a lot of cost factors. Apart from one time fee, the franchisers also charges per student amount and have a certain percentage in annual profits. In a bid to fulfill the financial liabilities to be franchisees, the schools pass on the money burden to parents by charging hefty fees. Sources said a school located along the Jaipur-Ajmer highway gives 20s% of its fees to the franchiser. Parents have a rage for admitting their children on franchisees with big brand names. They expect that franchisee schools are offering the same quality education as they are being delivering in the parent schools, but in reality it turns out to be poles apart. Ajmer-based Mayoor School of Mayo School group has opened its franchisee schools in Bhopal and Noida with its brand name Mayoor School. DPS has three schools in Rajasthan-Jaipur, Udaipur and Jodhpur. Defending the order, the school owners said that brand name is a property and is always transferable. “Brand names and logos are properties of an individual group and being used by franchisees is not a commercial activity. The CBSE is unnecessarily exercising its authority in areas which are not in its domain,” said Damodar Goyal, president, Society for Private Unaided Schools in Rajasthan. However, parent associations have welcome the move and are expecting such schools to reduce fees. Such a situation will also pose a challenge for states like Rajasthan, Tamil Nadu and Punjab as the respective state governments has formed committees to decide the schools fees on various parameters.
Posted on: Tue, 10 Sep 2013 00:58:22 +0000
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