Franchising Information

Invest in Early Childhood Education

Early childhood education (ECE), skills development is a fruitful investment in children's future.
According to the Nobel Laurate Dr. James Heckman "It's Good Business to Invest in Young Children". It is a scientific fact, that the sooner education happens, the more impact it makes, because the skills they learn in the very early years set a pattern for acquiring life skills later.
"On a purely economic basis", Dr. Heckman says, "it makes a lot of sense
to invest in the very young."

It is now the #1 issue on the White House education agenda:

Focus on Early Childhood Education

The years before a child reaches kindergarten are among the most critical in his or her life to influence learning. President Obama is committed to providing the support that our youngest children need to prepare to succeed later in school. The President supports a seamless and comprehensive set of services and support for children, from birth through age 5. Because the President is committed to helping all children succeed – regardless of where they spend their day – he will urge states to impose high standards across all publicly funded early learning settings, develop new programs to improve opportunities and outcomes, engage parents in their child’s early learning and development, and improve the early education workforce.

http://www.whitehouse.gov/issues/education

The United States spends 10 billion dollars annualy to support ECE.

The Science of Child Development

Harvard University is operating the Center on the Developing Child.

Key scientific facts from Harvard:

• Brain architecture is constructed through an ongoing process that begins before birth
  and continues into adulthood. It’s impossible to say that a certain percentage of brain
  development occurs before a certain age—it’s not that simple. It is true that the early
  years are the most active period for establishing the neural connections that comprise
  our brain architecture—700 new connections form every second in the first three years
  of life. As it emerges, the quality of that architecture establishes either a sturdy or a
  fragile foundation for all the capabilities and behavior that follow.
  
• Skill begets skill as brains are built in a hierarchical fashion, from the bottom up.
  Increasingly complex circuits and skills build on simpler circuits and skills over time.
  
• The interaction of genes and experience shapes the circuitry of the developing brain.
  Young children serve up frequent invitations to engage with adults, who are either
  responsive or unresponsive to their needs. This “serve and return” process is
  fundamental to the wiring of the brain, especially in the early years.
  
• Cognitive, emotional, and social capacities are inextricably intertwined and learning,
  behavior, and both physical and mental health are highly interrelated over the life
  course. One domain cannot be targeted without affecting the others.
  
• Although manageable levels of stress are normative and growth-promoting,
  toxic stress in the early years can damage developing brain architecture and lead to
  problems in learning and behavior, as well as increased susceptibility to physical and
  mental illness. Precipitants of toxic stress may include severe poverty, serious parental
  mental health impairments, child maltreatment, and/or exposure to violence,
  in the absence of stable, nurturing relationships with the adults in a child’s life.
  
• Brain plasticity and the ability to change behavior decrease over time. The brain is
  remarkably adaptable throughout life, but getting it right early is more effective and
  less costly, to society and to individuals, than trying to fix it later. We can pay now or
  we will pay more later if we fail to promote healthy development in the earliest years.
  
• Effectiveness factors make the difference between early childhood intervention
  programs that work and those that don’t work to support children’s healthy
  development. These factors can be measured and can inform wise investments
  in effective policies and programs.

GEKKO Puts All This Science Into Play (Literally)

We invented a new institution, Education 2.0. It's not kindergarten, it's not school, it's GEKKO,
the "Skills Development Playhouse". Schools teach, we develop skills from birth to 14 year olds.

• We work with 4 children groups, led by a highly professional special education expert.
• We can and do prevent learning disabilities.
• It's proven, established in 1999.
• Within 10 years, without any financial support we became the 7th largest franchise network in Hungary, operating 23 playhouses.
• Children love it. No, really, the do. They enjoy it, and beg to come again.

Open a GEKKO in Hungary

We aim to reach 100% service coverage in our home country. This is a business opportunity for investors, who can operate one or more playhouses in franchise system. According to our market research, the Hungarian market needs 96 playhouses. One in every district of Budapest,
and every major city with a population higher than 40 000.

More Than Just Education Know-How

GEKKO provides the complete recipe:

1. How to run / operate the playhouse as a business
2. How to manage human resources well
3. How to market / advertise the playhouse effectively

Everything is 100% ready for implementation. Furniture, accessories,
legal groundwork, marketing materials. Everything is perfectly documented,
you just have to follow the recipe.

You have great support before you open and during operation. We operate a highly organized intranet to share information, provide support in all aspects of the operation: education,
HR, marketing, legal and business consulting.

Questions & Answers

1. Can I open a GEKKO outside of Hungary?
   Not yet. International franchise is scheduled to be available later this year.
2. How could I operate a GEKKO from outside Hungary?
   You can own the business and hire an operation manager who can operate one or more playhouses for you. Some of our playhouses operate this way with Hungarian business owners. We calculate with an operation manager in our business plans.
3. How much does the franchise cost?
   The initial fee is 4 800 000 Ft + VAT (€18,000 + VAT). This gives exclusive rights to use the GEKKO know-how in a district of Budapest or a in major city / area with enough population to run a profitable business for 5 years. You have to pay 120 000 Ft + VAT
   (€450 + VAT) monthly royalty for the use of the GEKKO brand, know-how and services.
4. Are there any other franchise-related costs?
   No. Of course the business has many other costs, but nothing else is payable to GEKKO Hungary. There are HR, marketing related services that are outsourced,
   the franchisee pays these directly to the provider of the service.
5. What's the total capital requirement?
   It depends on quite a few factorts, such as renting or purchasing property.
   €100,000 capital is a safe for launching in a rented property. This includes every neccessary investments, including a large introductory marketing campaign, savings for the inevitable initial operating losses in the first year.
6. How much profit can be made?
   The playhouse can make above €4,000 pre-tax monthly profit
   after building up the client-base.
7. Are the "good places" still available?
   All 96 territories are "good", but there are indeed large, major cities still without GEKKO. Apart from these, some of the operating playhouses also seek investors.
8. Do you provide training?
   Yes, to the operation managers, and our teachers as well.
9. How long does it take to open a GEKKO?
   It usually takes 2-3 months after signing the contract.
10. How long does it take to become profitable?
    Depends on many factors. A large marketing budget and enough cash reserves
    for operating losses is nessecary in the first years to make sure the company
    grows fast enough. There's nothing GEKKO specific in these issues, it's hard
    to start up any new business.
11. Can you send me an English contract?
    No, but at a later stage in negotiations we will get you an official translation
    of the contract to your native language.
12. Can you send me more information?
    We are here to answer any questions: franchise@gekkonet.hu
    You can also call, or chat with us. Before signing the contract,
    you are thorougly presented with the complete know-how.
13. Can I visit a GEKKO?
    Of course. The founders of GEKKO introduce the teaching playhouse personally,
    in great detail. You are also free to consult other franchise operators,
    our HR and marketing experts, etc.
14. How many employees do I need?
    You definitely need an operation manager from day one and two teachers.
    You will employ four teachers as the playhouse reaches its full capacity.
15. What is the capacity of one playhouse?
    A playhouse provides capacity for 240 children. This is not the theorethical capacity
    maximum, this is what can be achieved in real life.
16. Do I need to have a background in education?
    Absolutely not. You will need investment / business / management skills.
17. Are you dependent on state funds?
    The good part of not being sponsored is that we are not at all dependendent on external funds. Goverments can't take away, what they never gave. Parents pay for our education services, our know-how does not involve begging for state finance.
18. How to proceed if I'm interested?
    Let us know and start it from there. We will answer every question you may have,
    and if you are still interested, we can schedule a meeting in Budapest
    with the founders of GEKKO.