About your Investment
Kip McGrath Education Centres Limited (KMEC) is a Franchisor of Proprietary Education Materials and a Business System. The KMEC business dates back to 1974 with the Franchise business beginning in 1987. Since then we have become a leader in the after school tuition market in Australia and New Zealand. There are now over 680 Centres in 20 countries throughout the world. In the past 2 years KMEC has opened over 30 Franchised Centres overseas and plans are in place to accelerate this growth in the coming years.
Our business assists young people to improve their literacy and numeracy skills to take advantage of opportunities in the modern world. The Franchised Centres offer children aged between 4 and 18 years, tutoring in the basic skills of reading, spelling, English and maths. We also offer study skills support to students undertaking degrees and diplomas as part of our affiliation with the Institute of Technology Australia (IOTA).
KMEC derives its income from the sale of Franchises and ongoing fees paid periodically by Franchisees. This is regulated by the Franchising Code of Conduct within the Trade Practices Regulations 2001.
Plans for Growth
By leveraging our strong position in the market place, we have big plans for increasing our presence in the supplementary education market which we expect will increase profits and offer even more security to our franchisees.
This is being achieved by:
Extending the age groups we cater to also cover:
- Pre-school
- Kindergarten (first year at school)
- Years 11 and 12
- Undergraduate
- Postgraduate
Expanding the subjects we teach to also include:
- Maths (to the highest levels)
- Essay writing
- Study skills
- Getting ready for school
- Getting ready for formal learning (end of Kindergarten)
- English as a second language
- Intelligence development
Increasing our market share by targeting:
- More schools - we currently have 40 schools using our programs.
- Students online – new online courses will be sold through our centres which will double as a physical place where students can access help using real teachers. This is a significant point of difference compared to other suppliers of online study.
- University students – We’re now offering undergraduate and post-graduate study skills courses through our centres.
History
The founders of the Company, Kip and Dugnija McGrath opened their first education centre in Maitland, New South Wales in 1974. Within a very short space of time the McGraths had opened six centres in the Hunter Valley. They ran these centres successfully for 10 years before choosing franchising as the means of expanding beyond their regional constraints and thereby growing the business further.
Today there are approximately 680 KMEC Franchised Centres in 20 countries worldwide.
Kip McGrath Company Structure
The Business
As the Franchisor, KMEC's core business is to sell Franchises and support and empower Franchisees.
In addition to assigning Franchise Territories, KMEC provides the KMEC System and material for Franchisees to conduct their businesses.
The keys to success of the KMEC business depend on its ability to:
- recruit and select suitable Franchisees;
- provide extremely high quality education materials;
- train Franchisees in the KMEC System;
- empower Franchisees to become independent business owners;
- provide support to Franchisees;
- encourage a network of Franchisees;
- research and develop new products/resources; and
- monitor Franchise quality.
In return for this, KMEC receives income from the Franchisee in the following manner:
- a one-off initial Franchise fee for exclusive rights to a Territory; and
- a weekly Franchise fee.
Franchisees derive income by tutoring children. The success of their business depends on their ability to use the KMEC System.
The KMEC System allows an individual teacher to tutor up to six students at a time and still enable each child to work on his/her own individual program at his/her own level. The tutor (often the Franchisee) does not have to prepare lessons nor spend time disciplining children. Rather, he/she can concentrate on what he/she has been trained to do - teach children.
In some overseas locations, KMEC has installed a Master Franchisee who is responsible for recruiting and servicing Franchisees within a defined territory. In these cases, the Master Franchisee retains a percentage of the fees paid by Franchisees. Master Franchisees currently operate in the UK, NZ and South Africa. Master Franchisees are trained in the KMEC System and are required to ensure Sub-Franchisees in their area are similarly trained to operate under the KMEC System.
The KMEC System
The biggest strength of KMEC is the ability of the overall KMEC System to enable potential Franchisees (who care about kids and education) to function as profitable business owners and operators.
It achieves this through:-
- The Tutoring System. This system enables children to be taught in groups of 5 - 6 and still be on individual programs.
- The Business System providing the means for Franchisees to run profitable businesses.
- The Training System to assist Franchisees to successfully operate a Franchised Centre.
- The Support System that is administered by Head Office and provides Franchisees with business and curriculum advice.
- The Research & Development System providing Franchised Centres with upgraded curriculum, which is monitored and revised according to market needs, both nationally and internationally.