Highlights of College Nannies and Tutors’ Item 19 Financial Performance Representations (2013 FDD) – Part 3
Explanatory Notes for Section 4
- In this section, the franchisor has prepared a chart to show the list of expenses with explanations and ranges of actual numbers experienced by franchisees in the system in the 2012 fiscal year. The range of expenses varies greatly due to the duration of the business referenced (start-up or open for a longer period of time), owner operated or semi-absentee owner operated, and growth plans.
- The purpose of the chart in Section 4 is to provide you with a basic understanding of what type of expenses a College Nannies and Tutors business will incur so you may be able to compare with actual expenses in your geographic area.
- Any individual franchisee may incur other expenses not listed at their discretion based on how they manage their business.
Section 4 – Expenses of a College Nannies and Tutors Franchise
- Cost of Goods Sold (hourly labor, taxes, workers’ compensation of nanny and tutor services): See Section 1 for specifics on labor bill and pay rates.
- Office Staff Salaries: Franchisees with learning centers usually have 2-3 full-time time employees in a range of $30,000 to $45,000 each per year. General Manager role is typically filled by owner, at least initially. In 2013, it is recommended that the first manager is hired in month one and second manager is hired in month thirteen, provided revenue goals are met.
- Royalties: 5% of Gross Revenues
- Brand Fund: 1% of Gross Revenues
- Technology Fee: $150.00 to $200.00 per month
- Accounting and Bookkeeping: Franchisees often manage their own bookkeeping. An accountant is required for tax filing and business review. For those enlisting a bookkeeper, cost ranges from $300 to $1,000 per month based on $20 to $30/hour bill rates.
- Marketing: Marketing expenses vary based on the current revenue and growth plans of the business. In 2012, franchisees spent between $1,000 and $4,500 per month.