By Mark Seavy  

As a branch of the U.K.’s fabled Harrow School prepares to open near New York, there’s a lesson in brand licensing being written. 

U.K. boarding schools are no stranger to international expansion, with several British schools having launched campuses abroad in a mix of licensing and franchises. Dulwich College, for example, has franchisees operating seven colleges and two high schools in Asia with 5,000 students. But the Harrow School’s New York branch marks the first time one has entered the U.S.  

And while some U.S. boarding schools have adopted aspects of the British model, Harrow in this case has partnered with the Indian family foundation Amity Education Group, which is bankrolled by entrepreneur Ashok Chauhan.  

The group, which purchased the 170-acre waterfront property in 2016 and spent about $100 million renovating it, will operate Harrow School New York in Oakdale, NY. The school will differ from the licensor when it opens in September by being co-ed in grades six through 12. 

 Harrow opened in 1574 and served as a stand-in for the Hogwarts School of Witchcraft and Wizardry in the first Harry Potter film. It has a history of licensing, with 12 campuses in Asia. Two other schools are scheduled to open—licensee Asia International School Limited Harrow (AISL) will open one in 2027 in Guangzhou, China with enrollment for 1,500 students ages two to 18 years old and United Arab Emirates education provider Taleem will operate schools across the Gulf Cooperation Council countries, starting with Abu Dhabi, UAE in 2026.   

“Obviously Harrow has a big name and is recognized internationally but, generally speaking, people attend a U.S. or U.K. school because they see it as a pathway to go to universities,” said Greg Parry, CEO of education management company Global Services in Education (GSE). “It is also a revenue generator and gives the schools a more international perspective.” 

Generating new revenue became especially important for British boarding schools after the U.K. government in January began applying a 20% value added tax (VAT) to private school fees. The schools previously enjoyed a charitable business rate tax status, and the new VAT is expected to produce £1.7 billion ($2.2 billion) annually in revenue for the U.K. government, including £456 million ($603 million) this year. Private school enrollment in the U.K. is expected to decline because of the VAT, with estimates that up to 37,000 students might leave for state schools. 

“Many schools in the U.K. are seeking to expand internationally either through licensing or franchises because the VAT has increased pressure on their funds,” a U.K. licensing executive said. “There are 20 or 30 U.K. schools that are actively seeking to expand or are already overseas. Some of these agreements can be very superficial, where the school is paid for the brand and marketing power, and others are far more significant with the school being involved in ensuring the operations are run effectively. The British schools have always been open to licensing, but it has been accelerated by the VAT. They are all looking at opportunities for new revenue.” 

These international expansion agreements have royalty rates and minimum guarantees that don’t differ much from standard licensing agreements. There is typically a 3-8% royalty rate depending on the profile of the school brand and how much of the business the school itself will operate. There is also a minimum fee or percentage of gross revenues, whichever is higher, paid on an annual basis, Parry said.  

Some deals also allow for licensors to conduct inspections and be involved in hiring and firing. GSE, which operates in 32 countries, is working with Boston-based The Newman School and will oversee campus extensions in international markets, Parry said. It typically takes two to three years for a school to be built and open. 

“The Newman School has said they get contacted five times a year by international investors wanting to use the name, but the school is very concerned about its legacy,” Parry said. “The most important thing for the schools is how do they protect their brand and make sure it isn’t going to get damaged in another part of the world. The risk is not managing it properly.”