College Nannies + Sitters + Tutors Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $45,000
- The above estimate assumes that this is your first franchised Territory.
2. Initial Marketing and Recruiting: $20,000
- You must spend at least $20,000 on initial marketing within the first 12 months of your operations. These funds must be spent according to the specifications in the Manual and will include expenses for the acquisition of a direct mail list, newspaper and magazine advertising, online marketing and recruitment, printing and postage costs.
- The franchisor may waive the initial marketing expenditure requirement if you are opening a College Nannies + Sitters + Tutors business in a Territory that is physically adjacent to or located within the same Metropolitan Statistical Area (MSA) as an existing College Nannies + Sitters + Tutors business owned by you.
3. Construction and Remodeling: $0 to $10,000
- The amount of construction and remodeling costs will vary dramatically depending upon the type of location, the terms of your lease, if applicable, and whether your landlord pays for leasehold improvements which are in turn reflected in your lease payment.
- You are required to establish an approved “Community Location” for your Business within 12 months after you sign the Franchise Agreement, but the franchisor recommends that you open the Community Location as soon as possible.
- The franchisor has a flexible real estate strategy that allows you to grow your real estate footprint as you grow your Business. The Community Location may be a shared office space (provided it has a door with a lock), an executive office, traditional office space, or retail space.
4. Furnishings, Equipment, Supplies, and Technology: $3,000 to $12,000
- Before beginning operations, you must purchase an assortment of office equipment, including computers, a printer, a voice telephone system, and other items as prescribed in the Manual, as well as furnishings and supplies.
5. Signage: $500 to $5,000
6. Legal and Accounting: $1,000 to $3,000
- This item is the estimated cost of basic legal services if you choose to retain a professional to review your Franchise Agreement and form your business entity.
7. Training Expenses: $1,500 to $3,000
- You must make arrangements and pay the expenses for you to attend the training certification program, including transportation, lodging, meals, and wages (if applicable). The amount expended will depend, in part, on the distance you must travel and the type of accommodations you choose.
- The estimate is for 1 to 2 persons’ travel expenses.
8. Insurance: $4,000 to $10,000
- This estimate is for the entire annual premium. You must obtain and pay for insurance in such amounts and of such coverage as the franchisor prescribes. In some states, the cost of the insurance may be significantly higher.
9. Additional Funds/Working Capital (initial 3 months): $30,000 to $50,000
- This amount of working capital is estimated to be sufficient to cover any initial operating/working capital expenses (including rent for your Community Location, employee wages, ongoing marketing, and other costs) that are not covered by fees collected during the first three months of operation.
- Because many of your costs are fixed, the amount of working capital will vary based on the number of families you serve.
- The franchisor has based this estimate on the experience in opening and operating College Nannies + Sitters + Tutors franchised Businesses during the past 15 years.
10. Total (does not include real estate costs): $105,000 to $158,000
- The figures above are estimates only and may vary depending on location. These figures do not include any applicable sales tax.
- Your initial investment will also vary considerably depending upon the method and amount of financing that you use.
- As further described in Item 10, if you meet the franchisor’s credit standards, it will finance a portion of the initial franchise fee(s) payable by you under the Franchise Agreement. The franchisor will not finance any other portions of your initial investment.