Updated December 17, 2018.
Detailed Estimates of Tutor Doctor Franchise Costs Based on Item 7 (Estimated Initial Investment) of Tutor Doctor’s 2018 Franchise Disclosure Document
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
- Printing includes promotional brochures, flyers, and business cards.
6. Market Advertising and Promotion: $3,000 to $13,000
- For a Franchised Business, you must spend this amount on market advertising and promotion. You may spend additional amounts with Tutor Doctor’s approval.
7. Phone and Fax: $500
8. Training: $2,000
- 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. 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: $1,500 to $3,000
- 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.
11. Field Training: $2,000
- This fee is to reimburse Tutor Doctor’s expenses for sending one of its representatives to your Franchised Business to provide onsite field training for between four to seven days.
- The timing of the field training will depend on Tutor Doctor’s representative’s availability.
- Tutor Doctor expects that you will coordinate the field training with its representative.
- You will pay for the travel and living costs (such as airfare and hotel) for Tutor Doctor’s representative, which you will pay directly to the applicable travel companies and hotel.
12. Branded Vehicle: $1,000 to $1,500
- You must purchase or lease a “Branded Vehicle” (which is a vehicle that has been professionally wrapped to meet Tutor Doctor’s specifications). The cost to purchase the Branded Vehicle varies from $11,990 to $22,000, depending on the model.
- Tutor Doctor’s estimates are for your costs through the initial phase and assume that you will purchase the vehicle and have monthly payments, and include the cost of wrapping the vehicle.
- If you choose to lease (rather than buy) a vehicle, then your costs will vary.
13. Total: $68,500 to $101,700
- Tutor Doctor relied on its experience to compile these estimates. The range provided will differ based on the type of franchise you establish, as follows: (1) $68,500 to $96,700 for a Local Territory Franchise; and (2) $73,500 to $101,700 for a Regional Territory Franchise.
- 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; the second Local Territory Franchise will be awarded to you for no additional fee. The estimated initial investment for the Empire Builder Franchise is $118,200 to $146,400.