Rich Dad's Cashflow
Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: Arizona
Description: Rich Dad's Cashflow Franchise, LLC offers local area franchises for the operation of a business that provides financial education services by facilitating gatherings at customers' homes or places of business and selling related educational products and services.
Franchise Offer: The Rich Dad's local area franchise is an opportunity for those wanting to establish and operate business and generate revenue from teaching the Cashflow games and imparting the Rich Dad philosophy: "The more you serve, the more you earn." At Cashflow Gatherings, the customers will play Cashflow games.
Financial Assistance: Except for leasing certain equipment, the franchisor does not offer direct or indirect financing. They do not guarantee any notes, leases or obligations.
Training and Assistance: The franchisor will provide the Stage-1 Training Program for the Owner Manager. The classroom portion of the Stage-1 Training Program will last for a period of 1 week (approximately 60 hours). They will also provide 1 week of on-the-job training.
Territory: The franchise agreement grants the right to operate a Rich Dad's franchise solely within a defined territory. The franchisee will not receive an exclusive territory, and may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. However, the franchisor will establish no more than 1 franchise for every 80,000 people within the territory.
Term of Agreement and Renewal: The length of the franchise term is five years, with the option for 2 additional consecutive 5 year successor terms
Obligations and Restrictions: At least one owner of the franchise must be directly involved in and supervise the Business. If the franchisee consists of a single individual, that individual will be the owner manager. The owner manager will be actively involved in the day-to-day management and operation of the business. During the first 2 years of the franchise agreement, the owner manager may operate the business on a part time basis. Beginning with the 3rd year, the owner manager must operate the business on a full time basis. The franchisor requires that all goods and services sold in connection with the business be approved in advance. The franchisee must offer all required goods and services, including all Rich Dad's Products and Rich Dad's Services.
Total Number of Units: No franchised outlets for year ended 2007.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Franchise Establishment Fee | $25,000 | $25,000 |
| Stage-1 Training Fee | $10,000 (assumes 1 person attends training) | $10,000 (assumes 1 person attends training) |
| Food, Lodging & Travel (1 person while training) | $500 | $1,500 |
| Real Estate, Build Out & Improvements | N/A | N/A |
| Equipment | $0 | $1,700 |
| Mobile Phone | $0 | $500 |
| Mobile Phone Service Fees and Mobile Phone Number Fees | $10 per cellular phone | $500 per cellular phone |
| Rich Dad's Approved Vehicle | $0 | $60,000 |
| Vehicle Registration | $0 | $600 |
| Initial Supply of Inventory |
$1,500 | $1,500 |
| Utility Deposits | $0 | $500 |
| Business Licenses | $0 | $250 |
| Legal Fees | $1,500 | $5,500 |
| Insurance | $1,000 | $6,000 |
| Miscellaneous Opening Costs |
$0 | $500 |
| Additional Funds - 3 months | $5,000 | $20,000 |
| Total Estimated Initial Investment | $44,510 | $134,050 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Purchase of Inventory (i.e., Rich Dad's Products and Rich Dad's Services), Supplies & Equipment | Franchisee will receive current price list before signing the Franchise Agreement |
| Franchise Service Fee |
17% of aggregate purchase price of all Rich Dad's Products and Rich Dad's Services purchased during prior month |
| Call Center Fund Fee |
Currently $30 |
| Annual License Fee | $2,500 per year |
| Stage-1 Training Fee | $10,000 per person |
| Stage-2 Training Fee | $200 per person per day |
| Equipment Lease Payments | Ranges from $75 to $225 per month for initial 2 years |
| Mobile Phone Service Fee |
Varies (estimated to range from $10 to $500 per month depending on dealer and plan) |
| Audit Fee | Actual cost of audit, including travel and lodging expenses for the audit team |
| Transfer Fee | 25% of then current Franchise Establishment Fee |
| Successor Fee | Costs incurred in reviewing and preparing the Successor Agreement, up to a maximum of $5,000 |
| Late Fee | Lesser of 15% of amount past due or highest rate allowed by applicable law |
| Indemnification | Will vary with circumstances |
| New Product or Supplier Testing | Cost of Testing |
| Insurance | Actual cost of premiums, plus costs and expenses |
The above information has been taken from the UFOC/FDD of Rich Dad's Cashflow
Franchise Direct's Disclaimer
You may be interested in the following franchises...
National Credit Authority
We are so confident in your success, we guarantee it! Start your journey to financial independence in one of the...
Minimum Cash Required: $4,500.
ClaimTek Systems
Start your own business in medical billing & practice management. We'll show you how and you'll never look...
Minimum Cash Required: $11,000.
Your Request List