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Investment and fees

Franchise sales conversations are, by design, optimistic. This checklist is meant to be used after that conversation, when you’re deciding whether the numbers and commitments actually hold up to scrutiny.

Confirm the total investment including interiors, working capital, and any fees not mentioned upfront. Ask directly whether there’s a monthly or annual royalty, and if so, the exact percentage and what it’s calculated against. Ask whether there are mandatory annual kit purchases or renewal fees layered on top of any stated “zero royalty” claim.

Curriculum and credibility

Ask how the curriculum aligns with NEP 2020’s foundational-stage guidelines specifically, not just generically. Ask how many years the brand has been operating and how many centres are currently active, and request to speak directly with at least two existing franchise owners, not references pre-selected by the sales team.

Location and territory

Confirm whether you get exclusive territory rights within a defined radius, and ask the franchisor to help validate your specific proposed location, a franchisor who has opened dozens of centres should have a clear methodology for this, not just a general endorsement.

Support and training

Ask exactly how many days of initial teacher training are provided, whether ongoing curriculum updates and refresher training are included, and what marketing support (materials, digital, local outreach guidance) is actually provided versus left entirely to you.

Financial realism

Ask for real break-even and enrolment data from existing centres, not projected models. Ask what percentage of the brand’s centres have actually hit their projected break-even timeline, a franchisor confident in their numbers will share this without hesitation.

The agreement itself

Confirm tenure length, renewal terms and costs, termination conditions, and any post-exit non-compete restrictions, in writing, before signing. Get independent legal review for any investment above a few lakh rupees.

Red flags to walk away from

Be cautious of franchisors who won’t connect you with existing owners, who are vague or evasive about royalty and fee structures, who pressure you to sign within days without time for legal review, or whose claimed ROI numbers are dramatically higher than the industry-wide 25-35% range without clear supporting evidence.

Use this checklist with every brand you’re considering

The value of this list is comparative, run the same 15 questions past every franchise you’re evaluating, and the differences in how transparently each one answers will tell you as much as the answers themselves.

Crayons Kids welcomes every question on this checklist, reach out for a transparent, documented answer to each one.