Club Z! In-Home Tutoring Services Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $19,750 to $34,750
- The franchise fee is: (a) $19,750 for up to 50,000 population territory; (b) $27,250 for up to 100,000 population territory; (c) $34,750 for up to 200,000 population territory.
2. Travel and Living Expenses During Training: $1,000 to $1,500
- The franchisor provides initial training to you and two additional people (or up to 3 of your owners) without charge, but you are responsible for all travel and living expenses if you are training at the corporate office. This estimate is for 2 people.
3. Miscellaneous Opening Costs: $500
- This item estimates your initial start-up expenses. These expenses include payroll costs. These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.
4. Computer and Other Equipment, Supplies: $550 to $1,200
- The franchisor does not estimate any real estate or office space costs. They vary dramatically based on numerous factors. The franchisor presumes you will operate your Club Z! Franchised Business from your home.
5. Software, Business Telephone Number, Web Hosting, and Email Account (3 months): $225
- The franchisor requires franchise owners to use its proprietary scheduling software to streamline processes in four major areas: client and employee/tutor management, scheduling, billing, and payroll.
- In addition to the proprietary scheduling software, the franchisor will also provide, and you will utilize, a virtual local business telephone number exclusively for advertising and marketing your Franchised Business, Web Hosting, and an email account. This fee shall begin 30 days from the date of the Franchise Agreement.
6. Club Z! Business Package (3 months): $750
- Beginning 30 days from the date of the Franchise Agreement, $250 must be paid directly to Club Z! each month for services which it will execute on your behalf, including call center services/appointment setting services, cold calling potential business partners on your behalf, live chat services during business hours, and a customized website (your “Sitelet”) and ongoing updates.
- This fee increases beginning year three.
7. Initial Launch Advertising (3 months): $6,000
- Beginning the first day of the month following the date you sign the Franchise Agreement, during your first three months of business, $2,000 must be paid directly to Club Z! each month for Launch Advertising services which it will execute on your behalf for your territory.
8. Insurance: $700 to $1,500
- The franchisor requires franchise owners to carry one million dollars in General Liability and one million dollars in Professional Liability coverage naming the franchisor as an additional insured.
9. Additional Funds (3 months): $4,000 to $6,000
10. Total Estimated Initial Investment Under Program (Excluding Real Estate Costs): $33,475 to $52,425
- The franchisor relied on its experience to compile these estimates.
- The franchisor does not offer financing directly or indirectly for any part of the initial investment for your Club Z! Franchised Business. The availability and terms of financing will depend on factors such as the availability of financing generally, your creditworthiness, collateral you may have, and lending policies of financial institutions from which you may request a loan.
- None of the fees to the franchisor are refundable. Any refund of payments made to various vendors will depend on the terms you arrange with those vendors.