Introducing Copel
Early Childhood Education Program
MASTER FRANCHISES NOW AVAILABLE!

Company Information□ Company Name:□ Tokyo Headquarters:□ President and CEO:□ Capital:□ Website:□ Our Business:

Copel Co., Ltd
3-16-14 Aoyama Minato-Ku, Plazada Aoyama #201, Tokyo, Japan
Nobuyuki Otsubo
50,000,000 JPY (As of December 2010)https://copel.co.jp/ https://copelplus.copel.co.jp/①「COPEL」Operating learning centers for preschoolers②「COPEL-PLUS」Operating rehabilitation learning centers
for preschoolers with developmental disorders③ Sale of learning materials
Japan: 73 centers

Learning centers for preschoolersChina: 1 center (Shanghai)

Japan: 10 centers
Rehabilitation learning centers for preschoolers
with developmental disorders

1Business PhilosophyvSloganv Copel
コペルスローガンMake
the world a better place through education「教育を通じて、よりよい世界をつくりましょう」
v
Initiativev Copel
コペル存在理由To
help people grow and raise consciousness「人類の進化と意識向上への貢献を目指します」
v
Goalsv Our
私たちの志すことtowards a society that embraces
・ To・ move
左脳型社会から全脳型共生社会への転回
activating the entire brain.
より幸福で愛に満ちた平和な世界の実現
a more peaceful world that is full of joy and love.
・ To・ realizev
v Copel
コペルの仕事に対する合言葉
Work Ethic
I「自分に関わるすべての人の幸せを増やそう」
want to make people around me happy.
Doingthings out of joy leads to fulfilling work.
「愉快に、のびのびと、美しく仕事をしよう」
2

Unicef said
Necessity of the early childhood education

In a short 36 months, children develop theirabilities to think and speak, learn and reason
and lay the foundation for their values andsocial bahaviour as adults.
3Brain Development
It’s said that the brain is 100% developed by the age of 12, and its capabilities aredetermined by the age of 6.

Developmentof human brain

Developmentof height4What is happening inside the human brain?
Children will reach their full potential if the connection between the right and leftbrain are triggered and strengthened.
Characteristics of a Genius’ Mind

A strong
connection
between the rightand left brain

It’s said that Einstein’s brain
showed a higher connection,
1.5 times stronger than theaverage person.
At Copel, we want every child to reach their full potential andsucceed. Our programs focus on activating the entire brain.
5When are connections made?
Connections are made in the brain when a child is fully engaged in an activity. It is said thatthe attention span of a child depends on their age. Most times it lasts the number of minutesof their age plus 1 more minute.
For example, a 3 year old would have an attention span of about 4 minutes. It seems as
though children during early childhood are easily distracted. However they actually pay
attention to many things. The young mind is constantly tuning into things and then saying,“I understand this, what is next?” They are highly attentive, almost to an excessive level.

6Key Factor for success of Early Childhood Education Program
To make connections, we have researched and brushed up

High Quality and Volume of Learning ResourcesSupervision and Training of Instructors
for 25 years. These two are our 「Differentiating services」
Early childhood education focuses long term on children between 0 through 12years of age. Offering high quality services will lead to customer retention andletting the business grow steadily over a period of time. Satisfied customers canbe expected to spread our services through word of mouth.
However, early childhood education is more complicated compared to secondaryand higher education. The programs need to be fun and captivating, so thatchildren can enjoy learning.
To realize a unique early childhood education program of high quality, it is vital for
instructors to receive thorough training and supervision, so they are able to offer
high levels of instruction and services.
7

Points that Differentiate Copel
Copel provides learning resources and curriculum for 6 years’ worth of lessons (42lessons per year for 6 years) for students between 0 to 6 years of age. Materials
assisting lessons are used for short periods to keep the children engaged with thelesson. A one-hour lesson utilizes more than a dozen different materials.
The amount of learning resources we provide is incomparable with other earlychildhood education programs.

■

We Never Stop Developing!
Learning resources are developed over a 3-month cycle. Researchers test andimprove developing materials with students to see what captivates and motivatesthem the most. A total of 360,000 researchers and staff have been involved in our
research and development of learning resources.

■

High Standard of Quality
Copel provides high quality learning resources, programs and manuals (includes
500 videos of lessons) and a structured system for instructor training to ensurethat all learning centers provide the same high level of instruction and customer
service.
8

Learning materials
We have over 2,000 kinds of learning materials. Resources cover six years’
worth of lessons or 42 weekly lessons per year. Also, we have videos and activity
instructions used to enhance classroom materials.
The learningmaterials used once
will be never used.

(Picture above shows materials used in one-week lesson)

9The result of our continuous improvement activity
Students between 0 to 6 years of age at directly managed learning centers maintain
enrollment for about 3.5 years on average. For every student you can see a return ofabout ＄3,500.
Number of students according to duration of continued enrollment

The average of otherlearning center

The number of Students

80
70
60
50
40
30
20
10
06
5.8
5.6
5.4
5.2
5
4.8
4.6
4.4
4.2
4
3.8
3.6
3.4
3.2
3
2.8
2.6
2.4
2.2
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
Number of yearsof continuous attending class
継続期間（単位：ヶ月）

Average

Copel

IQ levels are just one way of measuring a child’s development. But the average IQ testscore for students attending Copel for more than two years is 133.
10

Master Franchiser’s rights
1. The rights to use learning materials we developed
2. The rights to use the training teachers system
3. The rights to develop franchisee in your country

The Copel Master Franchise System■ The functionality of the Copel headquarter:
We will lecture the following items.
The localizing feature for teaching materials, manuals, and instructional videos to local languages

The training features for the instructors
The supporting feature for school management
The supporting feature for launching a class room
The marketing support feature■ The functionality of the Copel Master Franchiser in each countries
The translating feature for teaching materials, manuals, and instructional videos to local languages
The feature for developing local franchisee

The training feature for the local franchisee-instructors
The supporting feature for finding locations, launching a class room
The supporting feature for supervising
12

The Copel Master Franchise System（cash flow）

Copel HQ
50 % ofLocal FC
entry fee

Master FCentry fee

Royalties:
4% of loal fc sales

Royalties:
4% of Master FC sales

Master franchiser
Royalties:
10% of sales

Local FC
entry fee

Local Franchisee
Local Franchisee
TuitionTuitionEnrolment
Fee

Enrolment
Fee

Students
Students

Once

Monthly
13

The Copel Master Franchise System（Sales and profit）
Monthly Sale & Profit
The number of students
Sales(Direct operated learning center)

US dollar

50

150

300

500

750

1,000

10,00030,00060,000100,000

150,000

200,000

9,400

28,20056,40094,000141,000

188,000

600

1,800

3,600

6,000

9,000

12,000

826

2,178

4,206

6,910

10,29013,670Royalty（①×4%+②×4%）
Transportation cost ＄150
Direct cost of material（＄6/material）

376

1,128

2,256

3,760

5,640

7,520

150

150

150

150

150

150

300

900

1,800

3,000

4,500

6,000

Net sales profit
Selling and general administrative cost

9,174

27,822

55,79493,090139,710

186,330

12,95019,65029,90057,90074,00090,1006,000

10,50018,00030,00045,00060,000

1,500

3,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

20,00020,00020,000

150

250

300

400

500

600

50

150

300

500

750

1,000

①Enrolment fee ＄200
②Lesson fee ＄200－material fee＄12③Material fee ＄12Direct cost of sales

Labor cost
Sales promotion cost
Rent
Communication cost
Office supply cost
Consumable supply cost
Utility cost

Profit

50

150

300

500

750

1,000

200

600

1,000

1,500

2,000

2,500

-3,776

8,172

25,89435,19065,71096,230※The clumn of Enrolment fee is blanc because the number of new students would change seasonally.
※Tuition, salary and lent fee is changed in each countries.

14

Sample summary of Royalty
Summary of Royalties (MASTER FRANCHISEE)
マーケティングロイヤルティ額内訳
Annual royalties total
1years

5years

6years

7years

8years

9years10years1015

20253035

40

45

The number of students

100

120

140

160

180

200

220

400

600

800

100

600

1,400

2,400

3,600

5,000

6,600

14,00024,00036,00015,00060,00075,00075,00075,00075,00075,00075,00075,00075,000

Annual revenue total$29,400$146,400$276,600$420,600$593,400$795,000$1,025,400$2,091,000$3,531,000$5,259,000

7years

8years

9years10years

1years2years

3years

4years

5years

6yearsThe number of classrooms

14

8

12

16

20

24

28

32

36

The number of students

50

60

70

80

90

100

110

200

300

400

The number of students total

50

240

560

960

1,440

2,000

2,640

5,600

9,600

14,400

The admission fee

５０％

4years5The admission fee

Annual revenue total

15,00045,00060,00060,00060,00060,00060,00060,00060,00060,000$22,200$79,560$140,640$198,240$267,360$348,000$440,160$866,400$1,442,400$2,133,600

9years10years

1years2years

3years

4years66years
87years
108years

12

The number of students

2530

35

40

45

50

55

100

150

200

The number of students total

1360

140

240

360

500

660

1,400

2,400

3,600

15,00022,50030,00030,00030,00030,00030,00030,00030,00030,000$16,800$31,140$50,160$64,560$81,840$102,000$125,040$231,600$375,600$548,400

Annual revenue total

45years

The number of classrooms

The admission fee

２５％

3years1

The number of students total

Best

2yearsThe number of classrooms

1214

16

18

Revenue total

Total

10 years total

20-year cumulative total from 11 years

20 years total

Best$14,167,800$63,108,000$77,275,800

50%$5,938,560$25,603,200$31,541,760

25%$1,627,140$6,580,800$8,207,940※Royalty 10%，Monthly tuition fee $200

15

The Copel Master Franchise System
Steps to launch the first learning center in your country

TodayCopelJapanTour

Conclusionof thecontract

Hiringbilingual
who canspeak
JapanseTeaching
instructors

Launching
the firstschool

Finding
location for
the firstlearning
centerTranslating
materials

About six months
16Reference : Learning Center in Shopping Mall

Reference : Inside Learning CenterReference : Shanhai Learning CenterReference : Shanhai Learning Center