Jan 22, 2021 - Blog, Franchise Articles by |

The COVID-19 pandemic has had an unprecedented impact on our education system. With many students missing months of school in 2020, and with students across the country attending class remotely and relying on working parents for daily guidance in 2021, experts are forecasting long-term impacts for students of all ages. As reported by the Organization for Economic Co-operation and Development (OECD):

“This crisis has exposed the many inadequacies and inequities in our education systems – from access to the broadband and computers needed for online education . . . up to the misalignment between resources and needs. The lockdowns in response to COVID-19 have interrupted conventional schooling with nationwide school closures . . . [and w]hile the educational community have made concerted efforts to maintain learning continuity during this period, children and students have had to rely more on their own resources to continue learning remotely . . . .”

Given these impacts, parents across the country are looking to non-traditional venues to ensure that their children are able to receive the education they need. This includes relying on education franchises.

Should You Invest in an Education Franchise During the COVID-19 Pandemic?

If you are thinking about investing in an education franchise during the COVID-19 pandemic, there are several important factors you will need to consider. While the short-term demand may be enticing, this is just one of numerous considerations that should ultimately guide your buying decision. Here is an overview of some of the key issues involved in buying a franchise from franchisee lawyer Jeffrey M. Goldstein:

  • Long-Term Demand – While there may be significant short-term demand for educational services outside of the traditional school environment, will this demand withstand the eventual return to normalcy? Or, will parents largely abandon alternative education options once schools resume their normal operations?
  • Initial and Ongoing Costs – What is the estimated initial investment for the education franchise you are considering? What are the royalty and advertising fund fees? In order to determine whether a franchise is a good investment, you must assess both (i) how long it will take to recoup your investment, and (ii) how much you can expect in terms of net earnings on a month-to-month basis.
  • Operating Rules and Restrictions – A hallmark of the franchise model is the franchisor’s ability to strictly control its franchisees’ day-to-day operations. While this helps to ensure uniformity, many franchisees find that it ultimately hampers their ability to build a profitable business.
  • Franchise Agreement Terms – What are the terms of the franchise agreement? From operational controls to post-termination restrictive covenants, franchise agreements almost universally contain heavily one-sided terms that require careful consideration and strategic negotiation.

While these are some of the key considerations, this list is by no means exhaustive. For more information about evaluating an education franchise opportunity, you can read: Thinking About Buying a Franchise in 2021? Here’s What You Need to Know.

Schedule a Free Consultation with Franchisee Lawyer Jeffrey M. Goldstein

If you have decided to pursue an education franchise opportunity, your next step is to obtain a franchise business review. At the Goldstein Law Firm, we offer four fixed-fee franchise business review programs for prospective franchisees. To learn more about these programs, please call 202-293-3947 or request a free initial consultation with franchisee lawyer Jeffrey M. Goldstein today.

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Free Consultation