Search results

The franchise model aims to ?re-engineer higher education through innovative financing in order to reduce its vulnerability to budget cuts and make it an integral part of lifelong learning?. The franchise is a lump sum granted by the government. At first, the student or other stakeholders such as parents, employers or banks, fund educational costs. Once the student obtains proven results, they can claim a certain share of the learning investment from their franchise. In this article, the author defines the context for financial innovation in terms of a transition from higher education as a closed system to higher education as an open system, and the set of demands generated that must be satisfied by new financing mechanisms. The last part of the paper defines the franchise model and its implementation strategy in the Netherlands.