Franchising the american elementary and secondary educational system

Abstract

To solve the education “woes” of the U.S., many experts have looked to both command economies (standardized curriculum), and competitive markets (e.g. school choice and school vouchers), for answers. This normative research explores an optimal mix between market economies and command economies in education through the use of the business-format franchising structure. Franchising, an organizational form lying between the extremes of markets and hierarchies, would establish a standardized curriculum composed of those components of education that are deemed essential to the educational growth of our students. At the same time, franchising allows for levels of autonomy for educational institutions that would enable them to effectively target the additional needs and preferences of their local area, which in turn develops competitive markets in which schools compete for student enrollment thereby remedying the moral hazard problem. Finally, two additional characteristics that make this format attractive in tackling the problems in education are its continuous transfer of “know how” and its regular technical assistance. In the context of education, these characteristics translate into necessary links between educational theory and practice as well as national research and training grounds for teachers and administrators.