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The FOCO Model in School Franchising, Explained
FOCO and FOFO are the two structures behind almost every school franchise offer in India. The difference decides who runs the school, who carries operating risk, and where the return comes from.
What FOCO means
FOCO stands for Franchise Owned Company Operated. The partner funds and owns the land, the building and the assets, while the brand company runs the school day to day: hiring, academics, admissions, and administration.
The partner's return is typically a share of revenue or a contracted payout rather than the operating profit itself. It is the more passive arrangement, and the partner has limited control over decisions that affect the school's performance.
What FOFO means
FOFO stands for Franchise Owned Franchise Operated. The partner owns the school and also operates it, using the brand's systems, curriculum, training and support.
The partner carries operating responsibility and keeps the operating upside. Decisions on staffing, local marketing and day-to-day running sit with the partner, inside the brand's standards and audits.
Which is better for the partner?
It depends on what you want. A purely passive investor with no interest in institution building may prefer FOCO. An owner-operator, a trust, or an investor who wants control and full operating return does better with FOFO.
The practical risk in FOCO is that the party running the school is not the party whose capital is at stake. In FOFO those are the same person, which aligns incentives.
- FOCO: passive, brand operates, capped or shared return, less control
- FOFO: owner-operated, brand supports, full operating upside, more control
Which model does Seth M.R. Jaipuria Schools use?
Seth M.R. Jaipuria Schools operates on the FOFO model. The partner owns and runs the school. Jaipuria provides the brand, the CBSE-aligned academics, the operating systems, recruitment, training, admissions and marketing support, and conducts 360 degree academic and operational audits.
The initial investment is approximately Rs 8 to 10 crore, with the partner providing land of about 2 acres. The partner never operates alone, but the school is genuinely theirs.