Detailed Information on College Nannies + Sitters + Tutors’ Initial Franchise Fee, Royalty Fee + 13 Other Fees (Items 5 and 6, 2021 FDD)
1. Initial Franchise Fee: $45,000
- The standard initial franchise fee is $45,000. This amount is fully earned by College Nannies + Sitters + Tutors on signing the Franchise Agreement and is not refundable.
- If you meet College Nannies + Sitters + Tutors’ qualifications and opt to purchase a second franchised Territory, then the initial franchise fee for the second franchised Territory is $35,000 (or a total of $80,000 if you purchase the two franchised Territories at the same time).
- If you meet College Nannies + Sitters + Tutors’ qualifications and opt to purchase a third or any additional Territories, then the initial franchise fee for the third and each subsequent Territory is $25,000 (or a total of $105,000 if you purchase all three franchised Territories at the same time).
- If you are an existing franchisee, you will be entitled to the reduced initial franchise fees if you subsequently purchase a second, third, or more franchised Territories as long as you are in good standing and not in default of your Franchise Agreement(s).
- You must execute a separate Franchise Agreement for each Territory.
- If you meet College Nannies + Sitters + Tutors’ credit standards, it will finance up to 80% of the initial franchise fee(s) payable by you under the Franchise Agreement. You must make an initial down payment of at least 20% of the total initial franchise fee(s) at the time you sign your Franchise Agreement. The remainder must be paid over a period of no more than 24 months.
- The above-described fees are the only payments you must make to College Nannies + Sitters + Tutors for services or goods provided before your franchised Business begins operating.
2. Royalty Fee: 5% of Gross Revenues. Minimum Royalty Fee of $800/month starting 18 months after you and College Nannies + Sitters + Tutors sign the Franchise Agreement (“Effective Date”)
- Due Date: Payable on the 5th business day of each month for the previous month.
- Payable to College Nannies + Sitters + Tutors.
3. Brand Fund Contributions: 2% of Gross Revenues
- Due Date: Payable on the 5th business day of each month for the previous month.
- Payable to College Nannies + Sitters + Tutors.
4. Technology Fee: currently, $225 per month per territory
- Due Date: Payable on the 5th business day of each month for the previous month.
- May be increased.
5. Local Marketing Expenditures: greater of 2% of Gross Revenues or $15,000 per year
- Due Date: As incurred.
- This is in addition to the Brand Fund Contributions.
6. Multi-Area Marketing and Cooperative Advertising: varies
- Due Date: As incurred.
7. Renewal Fee: $2,000
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- Due Date: Upon signing new Franchise Agreement.
8. Relocation Fee: $3,000
- Due Date: Before relocation.
- College Nannies + Sitters + Tutors must approve relocation.
9. Transfer Fee: $10,000, plus the cost of training ($2,000)
- Due Date: At the time of transfer.
- College Nannies + Sitters + Tutors must approve transfers.
- College Nannies + Sitters + Tutors may waive the cost of training if the transferee is an existing franchisee.
10. Audit Fees: cost of audit
- Due Date: Upon demand after audit.
- Only payable if there is an understatement of revenues of 2% or more.
11. Interest: 1 1/2% per month
- Due Date: Upon demand.
- Not to exceed maximum amount permitted by law.
12. Supplemental Training Fee: $2,000 per training session (1-day)
- Due Date: At time of training.
13. Manager Training Fee: currently, $0 per person
- Due Date: Upon demand.
14. Shared Services Fee: currently, between $2.50 to $15 per applicant
- Due Date: Payable on the 5th business day of each month for the previous month, or upon demand.
- College Nannies + Sitters + Tutors currently offers optional services that it, its affiliate, or designee can provide or conduct on your behalf, such as recruiting applicants and conducting reference checks (“Shared Services”).
- The specific then-current fee for each available Shared Service is set forth in College Nannies + Sitters + Tutors’ Manual.
- College Nannies + Sitters + Tutors may modify its then-current Shared Services that it may offer franchisees, and the respective fee for such Shared Service, at any time upon notice to you.
15. Late Fee: $100
- Due Date: Upon demand.
- Payable if you are more than 5 days late in the payment of any amount owed to College Nannies + Sitters + Tutors.
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