Educational franchising is an emerging area in the fast growing services sector. However, no empirical research has been done in exploring whether franchising is a suitable business structure for distributing quality educational services. Four children's education franchisors in Australia were interviewed for this qualitative study to determine aspects of the business relationship between the franchisors and franchisee. The findings reveal that while the franchising structure supports the teaching and distribution of quality education as well as providing a vehicle for cost effective expansion, more business skills are needed by the franchisees. Franchisors feel that the teacher franchisees need to be skilled business people to support the educational franchising system more effectively.