In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the College Nannies, Sitters and Tutors franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a College Nannies, Sitters and Tutors franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a College Nannies, Sitters and Tutors franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of College Nannies, Sitters and Tutors’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- average bill rate, pay rate, and gross margin percentage for nanny placement services, babysitting services, corporate back-up care through national account, tutoring services (customized tutoring and homework help), and tutoring services (ACT/SAT/PSAT college test prep) for the College Nannies, Sitters and Tutors franchise location in St. Paul, MN owned by the franchisor’s affiliate, and for the entire franchise system (separately stated)
- 2016 income, cost of goods sold, gross profit, expenses, and net operating income for the College Nannies, Sitters and Tutors franchise location in St. Paul, MN owned by the franchisor’s affiliate
- first year, second year, and third year revenues, by tier, for all College Nannies, Sitters and Tutors businesses since October 2006 that opened an approved Community Location within 12 months of signing their Franchise Agreement (as required) and were in operation for at least 12 months as of December 31, 2016
Section I – Background Information
8 Things You Need to Know About the College Nannies, Sitters and Tutors Franchise
Recognizes Austin Franchisees with Five Corporate Awards
1. During its 2017 National Conference held over the summer in Minneapolis, Minnesota, College
Nannies, Sitters and Tutors (CNST) awarded its Austin franchisees with five of its top awards. Franchise owners Donna and Doug Balser won the awards for Largest Nanny Growth (64%), Largest Sitter Growth (155%), Rockstar Office, Rockstar Manager, and Million Dollar Territory. The Balsers offer customized nanny, sitter, and tutoring services throughout the Austin metropolitan area, including Round Rock, Cedar Park, and Georgetown.
2. Donna Balser said that she and her husband decided to open their CNST franchise based on their personal experience raising kids in the area and recognizing “a need in the marketplace for high-quality, reliable childcare and inspirational and effective tutoring services.”
Using Mobile App to Manage Childcare
3. In early 2016, College Nannies, Sitters and Tutors launched a mobile app called My Sitters™, which helps families easily manage their childcare services with their local center. The app, which is available on the App Store and Google Play Store, allows parents to:
- Find Sitters and Nannies – view real-time availability for sitters that their local office has matched with their family based on the office’s experience and their family’s unique needs and personality
- Review Profiles – verify nanny and sitter certifications and professional experience
- Schedule a Sitter – select the day, time, and sitter for their family when they need it
- Check Assignments – review calendar of pending, confirmed, and completed sitter’s assignments and receive push notifications when nannies accept care requests
- Include Notes – leave personal notes and instructions for their babysitter
4. Sitters and nannies can also use the app to manage their work schedules and make it easier for them to communicate with their local CNST office. With the app, sitters and nannies can:
- Enter Availability – update days and hours of availability on the go
- Manage Job Assignments – review new job assignments and update babysitting requests
- View Calendar – check monthly work schedule and update hours/days of availability
- Enter Timesheets – submit recent time entries and review time for current pay period
- Learn Assignment Details – find important assignment details including children’s allergies, family pets, parent instructions, and more
- Get Directions – request directions to job locations with Google Maps integration
5. College Nannies, Sitters and Tutors was founded in 2001 by Joseph Keeley in Edina, Minnesota. In the summer of 2000, Keeley, who was a business student at the time, took a job as a nanny and realized that he was much more than a babysitter. He felt that he was “an active role model” for the children and also recognized a need for a unique and specialized service that connected parents with safe and reliable nannies and tutors or role models.
6. Keeley gathered fellow college students, college graduates, and certified teachers looking to make a positive difference working with children and adolescents, and developed an efficient way to match families’ needs with the right nannies, sitters, or tutors.
7. The company has been franchising since 2005 and today, there are more than 145 locations across the U.S.
Entrepreneur’s Franchise 500
8. College Nannies, Sitters and Tutors has ranked on Entrepreneur’s annual Franchise 500 list several times in the past ten years. The company’s highest rank was No. 138 in 2017, while its lowest rank was No. 432 in 2010.
Section II – Estimated Costs
- Please click here for detailed estimates of College Nannies, Sitters and Tutors franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on College Nannies, Sitters and Tutors’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- In this Part 1, the franchisor has prepared five tables listing the average bill rate, average pay rate, and average gross margin percentage for the College Nannies, Sitters and Tutors franchise location in St. Paul, MN, and using that location’s actual pricing and expense information for the calendar year 2016.
- The St. Paul location is owned by CNT, LLC, which was an affiliate of the franchisor for the first six months of 2016. CNT, LLC was previously purchased by the franchisor from a franchisee in 2012. It was then sold to the franchisor’s former shareholders in July 2016 (at the time the franchisor was acquired by Bright Horizons) and was operated by them from July through December of 2016.
- In Tables 1 to 5 below, the bill rate is the average amount that was charged to customers for the specified type of services, as an hourly rate.
- The pay rate is the average hourly rate that was paid to employees of the St. Paul location who provided the specified services.
- Gross margin percentage is calculated by subtracting the hourly wage paid to the employee and all payroll taxes, workers’ compensation premiums, and payroll processing costs, from the bill rate and dividing the result by the bill rate.
- The tables below include average bill rates, pay rates, and gross margin percentages for the St. Paul location and for the entire franchise system.
- Your bill rate, pay rate, and gross margin percentage may differ.
Table 1 – Nanny Placement Services (including full-time, part-time, and summer nanny services)