College Nannies & Tutors
Date Incorporation: 2005
Franchising Since: 2005
Headquarters: Wayzata, Minnesota
Description: College Nannies & Tutors businesses have two distinct lines of services: nannies and tutors. One area is the placement of nannies that serve as domestic employees and provide child development services in the clients’ homes. The other segment of the business is providing tutoring services, both in homes and at learning centers. The tutoring services expand upon the child development theme through academic support of a child’s educational needs.
Franchise Offer: The College Nannies offer 3 business models:
i) The College Nannies franchise is for franchisees who want to focus solely on the nanny placement business described above. The College Nannies business will not offer tutoring services. However, at a later date, a College Nannies franchisee could add the tutoring component. The initial franchise fee for each separate component is $ 25,000.
ii) The College Tutors franchise is for franchisees who want to focus solely on the tutoring business described above. The College Tutors will not offer nanny placement services. However, at a later date, the College Tutors franchisee could add the nannies component for $ 25,000.
iii) They offer an area representative opportunity to select qualified individuals. Through an area representative franchise, they grant you the right in a specific geographic area (“Territory”) to (i) recruit prospective franchisees for us (“sales services”); and (ii) provide operational, training and field support to franchisees both before and after opening their College Nannies & Tutors business (“support services”).
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or other obligations.
Training and Assistance: The first part of the training is a structure in a series of telephone conversation followed by a series of start-up and training activities, the duration of this part of the training program is approximately 37 hours (depending on the business model). The next step of the training is the in the classroom training in their Minnesota office. The training program must be completed to the franchisor’s satisfaction before the opening of the Franchised Business.
Territory: The franchisee will receive a protected territory, the territory will generally be delineated by population, but in determining the Territory, the franchisor may also consider the number of children under 18, the median household income, and other demographic factors which they deem to be relevant. The Territory will have a general population of at least 100,000.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years with an option to renew for an additional 10 years if certain conditions are meet. The fee for renewal is $ 2000.
Obligations and Restrictions: The franchise Principal Operator must have attended and successfully completed the initial training program. Although it is recommended that the Principal Operator have an equity interest in the Franchised Business, the franchisor does not require any specific amount of equity interest. The franchisee must also be responsible for overseeing the operation of the Franchised Business and will be the person with whom the franchisor may conduct all communications. The franchisee may not solicit customers outside of your Territory, and that he may not offer child care services in your learning centers. The franchisee is restricted as to the software he may use or download onto his computer.
Total Number of franchises Units: 44 (2009)
Investment Tables:
Estimated initial investment for a College Nannies AND Tutor Business
| Name of fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Initial Advertising | $5000 | $5000 |
| Construction and remodeling | $0 | $50,000 |
| Furnishings, Equipment, Supplies | $5,000 | $10,000 |
| Signage | $0 | $500 |
| Legal and Accounting | $1,000 | $3,000 |
| Training Expenses | $1000 | $2000 |
| Insurance | $1000 | $5000 |
| Tutoring Materials | $4000 | $7000 |
| Additional funds (working capitals) | $5000 | $30,000 |
| Total | $60,000 | $164,000 |
Estimated Initial investment for a College Nannies Business
| Name of fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Initial Advertising | $5,000 | $5,000 |
| Construction and Remodeling |
$0 | $50,000 |
| Furnishings Equipment, supplies and technology | $5,000 | $10,000 |
| Signage | $0 | $5,000 |
| Legal and Accounting | $1,000 | $3,000 |
| Training Expenses | $1,000 | $2,000 |
| Insurance | $1,000 | $2,000 |
| Tutoring Materials | $4,000 | $7,000 |
| Additional funds (working capitals) | $4,000 | $21,000 |
| Total | $40,000 | $66,000 |
Estimated Initial investment for a College Tutors Business
| Name of fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Initial Advertising | $5,000 | $5,000 |
| Construction and Remodeling |
$5,000 | $50,000 |
| Furnishings Equipment, supplies and technology | $5,000 | $10,000 |
| Signage | $0 | $5,000 |
| Legal and Accounting | $1,000 | $3,000 |
| Training Expenses | $1,000 | $2,000 |
| Insurance | $1,000 | $2,000 |
| Tutoring Materials | $4,000 | $7,000 |
| Additional funds (working capitals) | $4,000 | $21,000 |
| Total | $48,000 | $130,000 |
Ongoing fees
| Name of the fee | Amount |
|---|---|
| Royalty | 5% of Gross Revenues Beginning the second year of the Franchise Agreement, there is a minimum monthly |
| Brand Fund Contributions | 1% of Gross Revenues |
| Initial Advertising Expenditures | $ 5000 |
| Local Advertising Expenditures | ½ % |
| Multi-Area Marketing and Cooperative Advertising | Varies |
| Renewal Fee | $ 2000 |
| Relocation Fee | $ 3000 |
| Audit Fee | Cost of Audit |
| Interest | 1- ½ % per month |
| Technology data Storage Fee | $ 150 per month |
| Additional Training | $2,000 |
| Additional Component Fee | $ 25,000 |
The above information has been taken from the UFOC/FDD of College Nannies & Tutors
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