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HindustanTimes Sun,31 Aug 2014

Mumbai : CBSE curbs buying of franchises

Puja Pednekar, Hindustan Times  Mumbai, September 06, 2013
First Published: 09:51 IST(6/9/2013) | Last Updated: 09:57 IST(6/9/2013)

The Central Board of Secondary Education (CBSE) has recently amended its affiliation bylaws to keep school education free from commercial franchise models.

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The amended rule states that any school making a payment for the use of the name, motto and logo of the franchiser institution, or any other non-academic activities, will be termed commercialisation.

Such schools will have to submit an affidavit to the CBSE stating that they have not entered into any contracts with their parent institute for a fee. If the schools fail to do so, they will lose their affiliation, states the rule approved by the board’s governing body.

Franchisee schools usually have to pay between Rs20 lakh and Rs1 crore to the parent institute for the permission to use their names, logos or brand names. Often, the school also has to pay the parent institute a share of the revenue.

“In several cases, such schools have to pay around Rs3,000 per child to the parent institute. The only way they can afford to do this is by shooting up the fees,’’ said a source who helps start schools.

However, using the brand name does not guarantee the same quality of education “Franchising should be a professional operation, where the parent institute renders expertise instead of just charging a fat fee,’’ said Captain Raj Mohindra principal consultant and managing director, Raj Mohindra Consultants, Pvt Limited.


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