Highlights of the Item 19 Financial Performance Representations of The Entrepreneur’s Source (2012 FDD) – Part 1
- The franchisee will offer such services as: advice and coaching to persons desiring to own their own business, assisting them in the discovery process with a referral to a number of franchises and/or businesses, consultation to and development of businesses seeking to expand through franchising, and providing services and products to existing business owners.
- The total investment necessary to begin operation of a TES Area Development business is between $147,200 and $157,050, which includes $135,000 that must be paid to the franchisor or an affiliate, for a 5 Unit Area Development Agreement and one Unit Franchise Agreement;
- $222,200 and $232,050, which includes $210,000 that must be paid to the franchisor or an affiliate, for a 10 Unit Area Development Agreement and one Unit Franchise Agreement;
- $272,200 and $282,050, which includes $260,000 that must be paid to the franchisor or an affiliate, for a 15 Unit Area Development Agreement and one Unit Franchise Agreement.
Statement of Franchisee Annual Projected Revenues
- The following are statements of annual projected revenues for TES Franchised Businesses. These projections have been calculated based on the experience of TES in the business and placement coaching industry, including the experience of its franchisees and staff, as well as industry standards.
- There are three projections based on a set number of clients engaged by one coach in each month for business coaching and the number of placement fees received by one coach for franchise placement coaching. In the franchisor’s experience in the franchise placement and business coaching industry, it believes that the calculations reasonably reflect attainable levels of revenue.
- The franchisor has created projections that reflect varying degrees of client development activity and increasing experience in the industry. The charts that follow reflect five years of projected revenue.
- The franchisor has calculated these numbers based on the low end of its suggested monthly coaching billing rate and the industry average length of coaching engagements for business clients. It has factored longer terms for coaching engagements as the coach develops greater confidence and experience.
- For placement coaching clients, it has applied TES’s Average Gross Placement Fee to Year 5 and decreased the Average Gross Placement Fee each previous year 4 through 1. All calculations for placement coaching are at or below the average placement fee rate.