With the aim of internalizing its teaching method, the language school CNA implemented a digital franchise model. There are already 50 units in this format and the goal is to sell 100 new businesses this year.
Although the franchise model is 100% digital, this does not mean that classes and the relationship between the school and students are carried out only virtually or digitally, said CNA's B2B director, Eduardo Murinto the Entrepreneurial Power.
Students will be able to study online, with real-time classes, taught by the network's teachers, as well as in person, being directed to an appropriate or adapted physical space, such as a classroom at the brand's partner school in the city or a local club with school space, or in a municipality, or neighboring region using school transport.
“There will be teachers allocated in municipalities where there are no physical schools, who will be able to teach in spaces adapted for this purpose, such as regular schools and associations”he stated.
The digital franchise is present in municipalities with less than 50,000 inhabitants, especially those with up to 35,000 residents. The new model is only available to entrepreneurs who are already franchisees of the brand.
The expectation is that the new format will be responsible for adding another 6,000 students to the network this year. According to Murin, the idea is that digital franchises will become physical microfranchises in the future, with an investment of R$35,000.
The director states that the new format is already present in all regions of Brazil. Digital franchises are implemented in municipalities up to 30 kilometers away from the original physical franchise.
“The region that grew the most with digital franchises was the Central-West region, [sobretudo] in the State of Mato Grosso, probably driven by the success of the most recent agribusiness harvests”he stated.
The initial investment required to open a CNA digital franchise is R$5,000. The CNA estimates that the operation will begin to return capital to investors within the first 12 months. The return on investment (ROI) should come after 18 months.
According to Murin, the CNA does not charge fees, such as royalties, to franchisees. The director states that 100% of the franchisor's revenue comes from teaching materials sold to franchisees.
The CNA has more than 200,000 students in 26 states and the Federal District, with growth of 15% last year compared to 2022.
The goal for this year is to open 230 new franchises. Investment values in the company's franchises range from R$5,000 to R$350,000, depending on the size of the model – studio, microfranchise, compact and small.
X-RAY
- foundation: 1973;
- founder: Luiz Gama;
- thirst: Sao Paulo-SP);
- number of franchises: 720;
- revenue in 2023: R$200 million.
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