This post was updated on February 15, 2017 to reflect information from College Nannies, Sitters and Tutors’ 2016 FDD (Item 7).
Detailed Estimates of College Nannies, Sitters and Tutors Franchise Costs Based on Item 7 (Estimated Initial Investment) of College Nannies, Sitters and Tutors’ 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $39,500
2. Initial Marketing and Recruiting: $20,000
- You must spend at least $20,000 on initial marketing. These funds must be spent according to the specifications in the Manual and will include expenses for the acquisition of a direct mail list, newspaper and magazine advertising, online marketing and recruitment, printing and postage costs.
3. Construction and Remodeling: $30,000 to $65,000
- The amount of construction and remodeling costs will vary dramatically depending upon the type of location, the terms of your lease, if applicable, and whether your landlord pays for leasehold improvements which are in turn reflected in your lease payment.
4. Furnishings, Equipment, Supplies, and Technology: $15,000 to $25,000
- Before beginning operations, you must purchase an assortment of office equipment, including computers, a printer, a voice telephone system, and other items as prescribed in the Manual, as well as furnishings and supplies.
5. Signage: $4,000 to $9,000
6. Legal and Accounting: $1,000 to $3,000
- This item is the estimated cost of basic legal services if you choose to retain a professional to review your franchise agreement and form your business entity.
7. Training Expenses: $1,500 to $3,000
- You must make arrangements and pay the expenses for you and your first hired manager to attend the training certification program, including transportation, lodging, meals, and wages (if applicable). The amount expended will depend, in part, on the distance you must travel and the type of accommodations you choose.
- The estimate is for two persons’ travel expenses, plus the training fee.
8. Insurance: $4,000 to $6,000
- This estimate is for the entire annual premium. You must obtain and pay for insurance in such amounts and of such coverage as the franchisor prescribes. In some states, the cost of the insurance may be significantly higher.
9. Tutoring Materials: $4,000
- You will need to purchase a variety of tutoring and test prep materials as further described in the manual.
10. Additional Funds/Working Capital (initial 3 months): $30,000 to $50,000
- This amount of working capital is estimated to be sufficient to cover any initial operating/working capital expenses (including rent, employee wages, ongoing marketing, and other costs) that are not covered by fees collected during the first three months of operation.
- Because many of your costs are fixed, the amount of working capital will vary based on the number of families you serve.
- The franchisor has based this estimate on the experience in opening and operating College Nannies, Sitters and Tutors franchised businesses during the past eight years.
11. Total (does not include real estate costs): $149,000 to $224,500
- The figures above are estimates only and may vary depending on location. These figures do not include any applicable sales tax.
- Your initial investment will also vary considerably depending upon the method and amount of financing that you use. The franchisor will not finance any portion of your initial investment.
Real Estate Costs
- You will generally need 800 to 1,200 square feet which will include a small lobby, reception area, one or two professional offices, small work area for copier and printer, and designated space for tutoring stations.