Aakash Institute Franchise Cost in India: Model, ROI, Eligibility Criteria & Steps to Apply

Established in 1988 and beginning its franchise journey in 1997, Aakash Educational Services Limited (AESL) is a leading name in competitive exam coaching across India—especially for NEET, IIT‑JEE, Olympiads, NTSE, and foundation programs. With over 200 centres nationwide (including franchise-operated units), Aakash reported ₹1,421 crore revenue in FY22 and profits surged by 82% that year. Franchise service fees contributed ₹139 crore or about 10% of total revenue, indicating a growing franchising income stream.

💰 Investment & Cost Overview

Based on reliable franchising listings:

Component	Cost (₹)
Minimum Investment (per centre)	₹60 lakh (~₹0.6 Cr)
Maximum Investment	₹2.5 crore
Brand / Franchise Fee	₹3.5 lakh (₹3.5 L)
Unit Size Required	4,000–5,000 sq.ft
Royalty / Commission	~30% of gross revenue
Territorial Rights	Exclusive per centre
Expected ROI / Return on Investment	~40% anticipated
Pay‑back Period	~2–3 years
Franchise Term	3 years (renewable)
Model	FOFO (Franchise-Owned, Franchise-Operated)

FranchiseIndia reports investment ranging from ₹10–20 lakh seems low and likely incomplete—more credible sources highlight ₹60 L to ₹2.5 Cr depending on location and size. Frankart Global and Qfran listings clearly state 4,000‑5,000 sq.ft and ₹60 L‑₹2.5 Cr investment range.

🏗 Franchise Model & Support System

Franchise Format

• FOFO model: Franchisee owns and manages the centre; Aakash provides curriculum, academic & operational systems.
• Typical centre footprint: 4,000–5,000 sq.ft, ideally in city centre areas with high student traffic.
• Exclusive territory rights per franchisee ensure reduced intra-brand competition.

Brand Support Includes:

• Comprehensive academic curriculum (NEET, IIT‑JEE, foundation courses).
• Faculty training, operating manuals, and standardized delivery systems.
• IT systems integration, MIS dashboards, and administrative software inclusion.
• Field assistance in operations and launch support.
• Marketing collateral, student enrollment guidance and branding support.

📊 Financial Forecast & ROI

Aakash projects an anticipated 40% return on investment, with pay-back within 2–3 years for unit centres.

Financial figures for FY22 show an EBITDA margin of 68% and return on capital employed (ROCE) of 24.6% at group level, indicating strong financial health and scalability across centres.

Example scenario:

• If a franchise generates ₹1 crore annual gross revenue, franchisee retains ₹70 lakh after paying 30% commission (~₹30 lakh) to Aakash.
• Operating costs (faculty, rent, utilities) could be ~₹30 lakh/year, leaving ₹40 lakh pre-tax profit on a ₹1 crore investment—aligning with projected 40% ROI and pay‑back in under three years.

✅ Eligibility Criteria & Ideal Profile

FranchiseIndia and industry insight suggest the following criteria:

1. Financial Resources: ₹60 lakh to ₹2.5 crore capital available, plus working capital for at least 6‑12 months of operations.
2. Suitable Property: 4,000–5,000 sq.ft space in city centre, with compliance approvals (commercial property licence).
3. Education-Oriented Mindset: Though not mandatory, experience in education or coaching is preferred. Strong leadership, service orientation, and student-focus are key.
4. Management Capacity: Ability to recruit, manage and motivate teaching staff; maintain academic quality and build student enrolment.
5. Commitment to Standards: Adherence to SOPs, academic guidelines, ethics, and brand integrity.
6. Documentation: KYC documents, proof of funds, NOC/lease agreement, and compliance certificates as required.

📝 Step-by-Step Application Guide

1. Initial Enquiry
   • Send an expression of interest via Aakash’s official franchise email or through portals like FranchiseIndia.
   • For digital/distance franchise, contact via official online enquiry form as per EducationWorld listing.
2. Receive Franchise Kit & Screening
   • Submit your business profile, location plan, investment readiness, and education vision.
   • Aakash reviews feasibility and shares the franchise dossier.
3. Site Visit & Feasibility Assessment
   • Franchise team may conduct location surveys assessing student demand, competition, rent, demographics.
4. Franchise Agreement & Fee
   • Review terms: 3-year renewable tenure, 30% commission structure, exclusivity territory, performance clauses.
   • Franchise fee usually ₹3.5 lakh.
5. Infrastructure Build-Out
   • Centre interior, furniture, classroom setup, signage, IT infrastructure—all per brand standards.
6. Faculty Hiring & Training
   • Recruitment of qualified academic staff; Aakash provides training modules and teaching methodologies.
7. Systems & Marketing Launch
   • Deploy MIS / student enrolment systems; local marketing, open house events, partnerships with schools.
8. Operations & Ongoing Support
   • Head Office provides field visits, periodic audits, curriculum updates, and marketing support.

⚖️ Pros & Cons for Investors

✅ Strengths

• Strong and trusted brand with decades of brand equity.
• Supported by a consistent academic system, content, and faculty.
• High business margins and predictable cash flow in urban student hubs.
• Pan‑India expansion potential via exclusive territory rights.
• Digital + offline blend provides competitive edge.

❌ Considerations

• High capital requirement: ₹60 L–₹2.5 Cr limits participation to well‑funded investors.
• Royalties: 30% commission is steep compared to many lower-cost education franchises.
• Long payback period: 2–3 years before profits stabilize.
• Operational complexity: Academic staffing, compliance, and student retention require management competence.
• Mixed feedback: Some Reddit reviewers describe issues with refund policies or inconsistent faculty quality in certain branches.

💡 Expert Advice & Best Practices

• Visit existing franchise centres to assess academic quality, batch size, and student feedback.
• Negotiate rent & lease terms carefully—rent escalation can significantly impact margins.
• Ensure clarity in agreement: termination clauses, renewal fees, commission thresholds, and support timelines.
• Invest in recruiter networks: good faculty hiring is critical to academic success.
• Keep contingency funds: initial student enrollment buildup may take time.

📝 Franchisee Quick Checklist

• Secure ₹60 lakh to ₹2.5 crore investment + 6-12 months working capital.
• Access 4,000–5,000 sq.ft in a high-footfall educational hub.
• Be ready to share 30% gross revenue as commission.
• Commit to brand SOPs and academic quality.
• Have ability to manage faculty, operations, and local marketing activities.
• Understand 3-year renewable agreement terms.

🧭 Final Verdict

Aakash Institute offers a premium, structured franchise opportunity in India’s education segment—with high brand equity, standardized curriculum, and pan‑India presence. Investors prepared for a capital-intensive investment (₹60 L–₹2.5 Cr), and capable of handling academic staffing and student operations, can anticipate ~40% ROI and breakeven within 2‑3 years.

Given its solid profitability and brand legacy backed by Byju’s, Aakash remains an attractive option for serious entrepreneurs in the test-prep space. But the high commission, operational demands, and extended payback periods mean it suits professional-level operators with long-term commitment.