FDD Talk: What You Need to Know About the Club Z! In-Home Tutoring Services Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Club Z! In-Home Tutoring Services franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Club Z! In-Home Tutoring Services 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 Club Z! In-Home Tutoring Services franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Club Z! In-Home Tutoring Services’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• average, high, and low number of students for the 146 franchised Club Z! businesses that met the following criteria: in operation for at least 12 months (May 1, 2015 through April 30, 2016), under the same owner, work 40 hours per week, and provided mandatory monthly revenue reports for the month of April 2016

• average, high, and low tutor hourly pay rates and client pay rates (elementary school level, middle school level, high school level, and test preparation) for the 228 franchised Club Z! businesses that had tutor pay and client rates posted in Club Z!’s customer management software as of February 2017

Section I – Background Information

15 Things You Need to Know About the Club Z! In-Home Tutoring Services Franchise

Expands Services to Include Online Test Prep and On-Demand Homework Help

1.  On September 18, 2017, Club Z! launched its new online, on-demand homework help that offers virtual tutoring in Math, Science, and Language Arts for students in grades 4-12. At the time of the launch, the on-demand services were only available Monday through Thursday from 6 p.m. to 10 p.m. EST. Club Z! said that it will expand the service hours during the first quarter of 2018.

2.  New and existing in-home tutoring clients can add the unlimited online homework help for as little as $99 per month. Clients who are enrolled with Club Z! for a minimum of 3 hours per week of in-home lessons receive the new service for free.

3.  According to Club Z!, all of its online tutors meet the same stringent vetting requirements as their in-home tutors. All tutors need to pass a criminal background check, have valid teaching credentials and relevant tutoring experience, and provide thorough references.

4.  Earlier in September, Club Z!’s online tutors began offering ACT and SAT prep classes for small groups. The online test prep classes are available on Saturdays and Sundays each month, in 3-hour lesson blocks, throughout the 2017-2018 school year.

5.  Students who enroll for the ACT and SAT classes will receive a comprehensive diagnostic test with projected score and detailed answer analysis, access to a full suite of online curriculum and assignments, and 12 hours of live online instruction with a top test prep tutor. All sessions are recorded in HD for future playback and added review.

Offers Free Learning Style Diagnostic Test for Limited Time

6.  From early December 2017 until January 31, 2018, Club Z! offered a free Learning Style Diagnostic Test for any student that was struggling in school. Interested parents could call Club Z! or sign up online to access the free test as well as receive a copy of Club Z!’s Study Tips Every Student Should Know e-brochure.

7.  The Learning Style Diagnostic Test helps students identify which of five learning styles (visual, auditory, kinesthetic, sequential, and/or global) they prefer. According to Club Z!, understanding which learning style works best allows students to study more effectively and improve their knowledge acquisition and retention.

8.  Mark Lucas, CEO of Club Z! In-Home Tutoring Services, credits its Learning Built to Last® study skills program (which starts with the Learning Style Diagnostic Test) for helping the thousands of students who have used Club Z!’s services. Lucas said, “All students are unique, and have unique learning needs and preferences. When a student tries to learn something new, having the right tools to make sure that information sticks is the difference between feeling confident or feeling defeated. We developed our Learning Built to Last® study skills program to help restore confidence to students in grades 4 through 12. This program offers lifelong strategies for everything from active reading techniques to proper note-taking.”

Newest Locations

9.  Club Z! In-Home Tutoring Services has a presence in every major market across the United States and continues to grow every year. Although 2018 has just started, Club Z! has already opened two new locations, one in Port Orange, Florida and another in Orland Park, Illinois.

10.  Club Z! of Port Orange is owned and operated by Julie LaClaire, an experienced educator who has been living in Port Orange for nearly a decade. To celebrate the location’s grand opening on January 17, LaClaire had a Facebook Live event where local residents were encouraged to like and follow the Port Orange Club Z! Facebook page to participate in several giveaways as well as avail of special new client promotions.

11.  When asked about why she wanted to open a Club Z!, LaClaire said, “One of the reasons I chose to open a Club Z! was because of the individual approach Club Z! takes to help students succeed. This includes partnering with the classroom teachers, counselors, and other important stakeholders that share in the student’s learning experience. This is why Club Z! students see average gains of 2 letter grades in just 60 days. When everyone works together, the students absolutely thrive!”

12.  Around the same time that the Port Orange Club Z! location opened, the new location in Orland Park celebrated its grand opening. This Club Z! franchise is owned by Aerie Cunningham and will service the nearby areas of Lockport, Lemont, and Woodbridge. According to Cunningham, “Club Z! reaches students more quickly and effectively because tutors give students the individual attention they need, making each child more comfortable, eager, and confident about learning.”

Company History

13.  Club Z! In-Home Tutoring Services was founded in 1995 in Tampa, Florida. The company specializes in providing in-home tutoring for grades pre-K to 12 in all subjects, as well as college and adult tutoring. Club Z! also offers SAT and ACT test prep services. The brand uses what it calls Z! Tutor Match to ensure that its tutors are screened, background checked, and matched with the right students.

14.  Since the first location opened in 1995, Club Z! has grown to nearly 500 locations in the United States and Canada. The company is currently seeking qualified franchisees worldwide.

Entrepreneur’s Franchise 500

15.  Club Z! In-Home Tutoring Services has appeared on Entrepreneur’s annual Franchise 500 list every year for the past 10 years, except in 2018. The company’s highest rank was No. 93 in 2011, while its lowest rank was No. 236 in 2012.

Section II – Estimated Costs

• Please click here for detailed estimates of Club Z! In-Home Tutoring Services 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 Club Z!’s In-Home Tutoring Services’ 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

Part 1 – Private Student Counts

• As of fiscal year end 2016, of Club Z!’s 383 Franchised Businesses, the franchisor is presenting Student Counts from Franchised Businesses that meet the following criteria: in operation for at least 12 months (May 1, 2015 through April 30, 2016), under the same owner, and work 40 hours per week.

• Because Club Z! permits franchisees to determine the number of hours they operate their Franchised Business, and part-time hours vary widely, it is only reporting Student Counts on businesses that operate on a full-time basis which it defines as 40 hours per week during typical business hours.

• Of Club Z!’s 383 Franchised Businesses, 211 or 55% operate on a full-time basis and 172 or 45% operate on a part-time basis.

• In Part 1 (Student Counts), Club Z! is reporting only on those businesses which provided mandatory monthly revenue reports for the month of April 2016. Of Club Z!’s 383 Franchised Businesses in operation during that month, 146 or 38% met the criteria above of operating for at least 12 months, under the same owner, and work 40 hours per week during regular business hours.