Updated November 11, 2019.
Detailed Estimates of Tutor Doctor Franchise Costs Based on Item 7 (Estimated Initial Investment) of Tutor Doctor’s 2019 Franchise Disclosure Document
For Local Territory and Regional Territory
1. Franchise Fee: $44,700 to $49,700
2. Rent Deposit, Pre-Paid Rent, Utility, and Phone Deposits: $0 to $500
- Deposits on utilities will vary.
- Typically, you will be operating your franchise from your home. If you are renting your business location, however, you will, in addition to the above, incur certain leasing costs. Most landlords will require a deposit of first and last months’ rent. Your monthly rent will vary based on the market rental rates of your market.
- Tutor Doctor does not require any prepaid deposits, permits, or licenses before you begin the operation of your Franchised Business but your particular locality may require a permit or license to offer franchises for sale or, in the case of a Franchised Business, to perform the “Tutor Doctor” Services, or have other business licensing requirements. You must obtain any permits or licenses as well as any other business licenses required in your locality.
3. Insurance Initial Payment: $1,300 to $3,000
- You will need to obtain the insurance coverage as may be reasonably required by Tutor Doctor or your landlord. This amount represents the estimate for the insurance premium.
- Tutor Doctor’s estimate includes automobile coverages for the Branded Vehicle.
4. Computer and Software: $1,000 to $5,000
- This figure includes the costs for the monitor, keyboard, cash drawer, credit card machine, receipt printer, printer, and the installation of Tutor Doctor’s software and credit card software.
- If you already own an existing business similar to the Franchise, as the case may be, you may own much of the necessary equipment and inventory to begin the operation of your Franchise.
- The low estimate shown here assumes that you already own an existing business similar to the Franchised Business. The high estimate shown here assumes you do not own an existing business, and includes office and field equipment in the case of a Franchise, inventory, and supplies needed to equip your business in accordance with Tutor Doctor’s standards.
5. Printing: $1,500 to $2,500
- Printing includes promotional brochures, flyers, and business cards.
6. Market Advertising and Promotion: $6,000 to $10,000
- For a Franchised Business, you must spend this amount on market advertising and promotion. You may spend additional amounts with Tutor Doctor’s approval.
- The vehicle you use in connection with the Franchised Business must be professionally wrapped to meet Tutor Doctor’s specifications, and the amount includes the cost of vehicle wrapping.
7. Phone and Fax: $500
🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)
🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)
💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator
8. Training: $3,000
- This figure includes the cost for transportation, meals, and other expenses associated with pre-opening training and travel to Tutor Doctor’s head office for your initial training for two individuals.
- In addition, Tutor Doctor may require that you or your personnel attend and successfully complete additional training and re-training sessions that it may periodically offer and you shall pay Tutor Doctor its then-current fees for the training.
- All travel, living, and other expenses in connection with the training programs, including wages and any training fees, shall be paid by you in advance of the training.
9. Additional Funds for 3 Months: $10,000 to $20,000
- This is an estimate of funds needed to cover your business expenses during your first three months of operation from the date you open for business.
- If you do not have a vehicle, you will need to purchase or lease a vehicle for use in connection with the Franchised Business.
- These figures are only estimates and Tutor Doctor cannot assure you that you will not have additional expenses when launching your Franchised Business.
10. Professional Fees: $2,400 to $3,900
- These are estimates for fees to be charged by your lawyer to review the Disclosure Document and the Franchise Agreements and other documentation, to advise you, and to incorporate a business entity on your behalf to sign the Franchise Agreement, and fees to be charged by your accountant and/or financial advisor.
- This also includes a one-time $900 fee from a third party Tutor Doctor currently uses to provide accounting software.
11. Test Preparation Certification: $2,895
- Before you may offer test preparation services to customers, you must be certified as qualified to offer test preparation services.
- The amount is charged by Prepu, LLC, the third-party vendor that Tutor Doctor currently designates for test preparation certification, for the course and materials that can produce such certification.
12. Local and Regional Territory Totals: $73,295 to $100,995
For Empire Builder Program
- Total Estimated Initial Investment: $135,995 to $160,695
- Under the Empire Builder Program, you are awarded one Regional Territory and two Local Territories. You must pay the franchise fee for the Regional Territory and only one of the Local Territories; and the second Local Territory Franchise will be awarded to you for no additional fee.
- The Empire Builder Program totals represent the estimated initial investment costs for three Tutor Doctor Businesses (one Regional Territory and two Local Territory Businesses).
Leave a Reply