Source · Select Committees · Education Committee
Recommendation 12
12
Acknowledged
We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or...
Conclusion
We welcome the Government’s moves to introduce mandatory regulation of franchise providers with 300 or more students and the availability of better data. There remains a major risk for some HE institutions that have become heavily dependent on franchisees that their withdrawal from providing courses could have a shock effect on the institution’s finances. (Conclusion, Paragraph 92)
Government response summary AI-generated
The government recognizes the Committee’s concerns regarding financial risks from franchising arrangements and welcomes the acknowledgment of steps already taken, but does not commit to new specific actions to address the *remaining* risk.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
PARTIALLY ACCEPT The Government recognises the Committee’s concerns regarding the potential financial risks associated with reliance on franchising arrangements, particularly where changes to these relationships could have a material impact on an institution’s financial position. We welcome the Committee’s acknowledgement of the steps already taken to strengthen oversight in this area, including the introduction of mandatory regulation for larger franchise delivery arrangements and improved data collection.
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