Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily (Children’s Franchises): Total Sales Less Tutor Fees for Company-Owned Omega Learning Center (By Year of Operation)

by Franchise Chatter on March 19, 2013

in Child-Related Franchises, Education Franchise, Franchise Earnings

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This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Omega Learning’s Item 19 Financial Performance Representations (2012 FDD)

  • The franchisee will operate a diagnostic testing and supplemental education center that provides individualized tutoring and assessment, standardized test preparation, and individually-tailored instructional programs and services to children and young adults.
  • The total investment necessary to begin operation of an Omega Learning Center franchise is $118,555 to $156,098. This includes $54,895 that must be paid to the franchisor or an affiliate.

Financial Performance of Brookstone Center

  • Omega Learning LogoThese financial performance representations are based on the performance of the company-owned Omega Learning Center operated by the company’s affiliate, Omega Learning Center, LLC, located at 5330 Brookstone Drive, Suite 320, Acworth, Georgia 30101. The company refers to this center as the “Brookstone Center”.
  • The Brookstone Center is similar to the prototype for a franchised center. The company began operating the Brookstone Center in May 2005.
  • “Tutor Fees” are the wages you pay your tutors. If you or one of your owners works as a tutor, you may reduce your Tutor Fees by approximately $21,120 per year. This reduction assumes that you work as a tutor for 40 hours per week, for 11 months of the year, and that your work offsets tutor wages of $12 an hour.
  • In July 2009, the company expanded the Brookstone Center from 1,400 square feet to 2,800 square feet.

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