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 2021 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 2021 FDD

• Section IV – Number of franchised and company-owned Club Z! In-Home Tutoring Services outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Club Z! In-Home Tutoring Services’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 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 304 franchised Club Z! businesses that had tutor pay and client rates posted in Club Z!’s customer management software as of February 2021

Section I – Background Information

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

Business Model Offers Multiple High-Profit Revenue Streams

1.  Club Z! Tutoring has been an in-home tutoring leader for over 26 years. The company’s decades of experience and proprietary curriculum will help franchisees become local leaders in their territory. Club Z! Tutoring provides franchisees with a cutting-edge training program that tells them the proper steps to take in order to become successful. Club Z! continues to support its franchisees for years to come.

2.  Club Z! also has a robust online tutoring model. Franchisees are able to benefit from some of the greatest web technology on the market known as WEBRTC, and interactive online learning. The corporate office of Club Z! Tutoring hires all of its online tutors, who are able to teach over 150 different subjects. This means that if a student in a franchisee’s area is requesting a complex subject, such as organic chemistry, they will be able to provide the student with an online tutor by Club Z! corporate. Franchises love Club Z!’s online tutoring because it helps students who need same-day tutoring, that the franchise may not be able to provide.

3.  Club Z! franchises also offer test preparation for the SAT, ACT, ASVAB, and many more exams. Over the past two decades, Club Z! has had leading professionals develop new and cutting-edge learning curriculum for test preparation. On average, a Club Z! SAT student increases over 160 points. On average, a Club Z! ACT student increases over four cumulative points on the ACT. Club Z! has developed test prep material for students on multiple College Entrance Exams and Military Tests.

4.  As colleges continually raise their prices, and lower their admission rates, Club Z! understands how difficult this may be for parents. This is why Club Z! franchises offer college admission consulting services to find students various forms of aid and assistance. Club Z! franchises are able to provide the tutoring, the college admission consulting, and will also help students with their college applications.

5.  Club Z! franchises have multiple Boot Camp-like programs that can help benefit their local communities. Boot Camps allow students who do not have the ability to pay for one-on-one tutoring still get the practice and tutoring they need to progress in their educational endeavors. Boot Camps offer franchises the ability to make more money on the weekends and throughout the summer.

Offers Options for Homeschooling and Learning Pods

6.  In early February 2021, the Club Z! In-Home Tutoring Services blog discussed its homeschooling and learning pods options. Club Z! offers several school support programs taught by highly qualified educators. Tutors help families in their homeschool journeys by providing either in-home or online support at many different levels, including supplementing instruction or teaching courses from start to finish, recommending curriculum and assessments, and helping with record-keeping. Club Z! tutors are also available to support students with school-based distance learning programs.

7.  Club Z! provides local “learning pods” comprised of students peers. Learning pods are an affordable, local tutoring solution that assists students and families by providing a local tutor to assist students in a small group setting. Pod sessions are offered at a home or a communal location.

8.  Whatever a parent’s or student’s needs are, Club Z! can help take the pressure off of busy parents and enrich the educational experience of the students. Club Z! helps students with:

• Individual subject tutoring or full school program implementation;
• One-on-one instructional lessons and small group instructional “pods” or peer learning groups;
• Curriculum selection and implementation;
• Assistance with homeschool reporting and record-keeping; and
• Enrichment opportunities.

Company History

9.  Club Z! In-Home Tutoring Services was founded by Mark Lucas in 1995 in Tampa, Florida. The company is North America’s largest in-home and online tutoring and test prep company. In addition to tutoring and test prep services, Club Z! covers foreign languages, music, computers, math, reading, and other academic subjects.

10.  Just a few years after launching the company, Lucas began franchising the Club Z! concept in 1998.  The company continued to grow over the next few decades and there are now locations all across North America.

11.  Lucas continues to own and operate Club Z!, serving as the company’s CEO. His son, William Lucas, has joined the company and also has a leadership role.

Entrepreneur’s Franchise 500

12. Club Z! In-Home Tutoring Services ranked No. 495 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Club Z! In-Home Tutoring Services franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on Club Z! In-Home Tutoring Services’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  368
• Outlets at the End of the Year:  385
• Net Change:  +17

2019

• Outlets at the Start of the Year:  385
• Outlets at the End of the Year:  383
• Net Change:  -2

2020

• Outlets at the Start of the Year:  383
• Outlets at the End of the Year:  376
• Net Change:  -7

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Tutor Hourly Pay Rates

• As of fiscal year end 2020, of Club Z!’s 376 Franchised Businesses, in Part 1 (Tutor Pay Rates) and Part 2 (Client Pay Rates), Club Z! is reporting only on those businesses for which tutor pay and client rates were posted in its customer management software as of February 2021.

• Of Club Z!’s 376 Franchised Businesses, 304 franchisees, or 81% of the franchise system, had tutor pay and client rates posted in Club Z!’s customer management software as of February 2021.

• The 72 Franchised Businesses excluded from Parts 1 and 2 did not post tutor pay and client rates in Club Z!’s customer management software.

Elementary School Level Tutor Hourly Pay Rates

• Average:  $20
• Number and Percentage That Attained or Surpassed This Stated Average:  137/45%
• Median:  $18
• Low:  $16
• High:  $24

Middle School Level Tutor Hourly Pay Rates

• Average:  $21
• Number and Percentage That Attained or Surpassed This Stated Average:  134/44%
• Median:  $19
• Low:  $16
• High:  $27

High School Level Tutor Hourly Pay Rates

• Average:  $22
• Number and Percentage That Attained or Surpassed This Stated Average:  140/46%
• Median:  $20
• Low:  $17
• High:  $33

Test Preparation Tutor Hourly Pay Rates

• Average:  $25
• Number and Percentage That Attained or Surpassed This Stated Average:  134/44%
• Median:  $22
• Low:  $19
• High:  $40

Part 2 – Client Pay Rates

Elementary School Level Client Pay Rates

• Average:  $47
• Number and Percentage That Attained or Surpassed This Stated Average:  133/45%
• Median:  $45
• Low:  $34
• High:  $82

Middle School Level Client Pay Rates

• Average:  $50
• Number and Percentage That Attained or Surpassed This Stated Average:  136/45%
• Median:  $48
• Low:  $37
• High:  $87

High School Level Client Pay Rates

• Average:  $54
• Number and Percentage That Attained or Surpassed This Stated Average:  131/43%
• Median:  $50
• Low:  $39
• High:  $93

Test Preparation Client Pay Rates

• Average:  $99
• Number and Percentage That Attained or Surpassed This Stated Average:  131/43%
• Median:  $80
• Low:  $65
• High:  $199

• The Franchised Businesses presented above do not differ materially from the franchises now being offered.

• The Franchised Businesses included in the above tables are mature businesses, in operation for one full year of business.

• The above figures were based upon information reported to Club Z! by its franchisees. The above figures have not been audited by Club Z! You should conduct an independent investigation of the costs and expenses you will incur in operating your Franchised Business.

• Some outlets have sold these amounts. Your individual results may differ. There is no assurance you’ll sell as much.

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