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Grade Power Learning Franchise Cost & Fees

Date of Incorporation: 1987
Franchising Since: 1991
U.S. Headquarters: Farmingdale, New York
Country of Origin: Canada

Business Description: Oxford Group International, LLC is the franchisor. Franchisees operate a business which provides educational services and products.

Franchise Offer: Oxford licenses the right to operate a Grade Power Learning franchised business to provide supplemental educational services to children designed to augment a child’s reading, writing and math skills, study skills and organizational skills through proven teaching methods and the use of proprietary curriculum materials.

Financial Assistance: Neither Oxford nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of theirs, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of theirs.

Training and Assistance: Oxford will provide the initial training program at OLC’s training facility in London, Ontario, Canada, or at another location of its choosing. Initial training will consist of 50-70 hours of home study, which is required before attending business and operations training. The home study could include but limited to, reading manuals, e-learning and observation at an existing Grade Power or Oxford Learning Center. Upon successful completion of the home study, franchisees will attend business training at OLC’s training facility in London, Ontario, Canada. This 20-50 hour session will cover the basic skills needed to operate a Grade Power Learning center. The second 20-50 hour session conducted at OLC’s facility will be operation training. This session is offered to the franchisee, the designated manager and/or the education director. This course covers the teaching methodology and assessment process. At Oxford’s discretion, it may provide 2-3 days of onsite training at the franchisee’s location prior to the opening of the center. During the term of the Agreement, Oxford will: continue to consult with and advise franchisees; provide the franchise system, and provide training and instruction on the use of teaching and instructional materials; and develop and make available for purchase and use, materials to assist franchisees in hiring, training and supervising employees.

Territory: If approved, franchisees will be granted an exclusive defined territory, subject to any reservations and exceptions contained in the franchise agreement. The Territory will he established by Oxford, taking into account the relevant demographics in the area. The size of each Territory will be determined at the time of signing the lease for the franchised business, and will be either a radius of protection in miles or he defined by a geographic border. In densely populated areas the radius is normally smaller than in a less populated area, but the minimum radius granted is 1/4 mile.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10-year period is available, subject to certain conditions.

Obligations and Restrictions: Franchisees or their designated manager approved by Oxford must participate personally and full-time in the franchised business. If franchisees are a corporation, partnership, or other entity, then a designated 50% or majority owner who is a natural person must personally manage the franchised business on a full-time basis. Franchisees may only offer and sell products and services approved by Oxford. Franchisees must offer, sell and provide all of the required services and products Oxford specifies.

Estimated Number of Units: 150

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $16,000 $40,000
Furniture, Equipment and Software $18,000 $30,000
Leasehold and Improvements $0 $50,000
Lease and Utility Deposits $3,000 $12,000
Literature, Education Materials $15,000 $20,000
Office Supplies $2,500 $3,000
Professional Pre-Opening Fees $800 $3,000
Sign $1,000 $10,000
Shipping $2,500 $10,000
Training Costs $2,300 $7,500
Insurance $1,000 $5,000
Initial Advertising $10,000 $15,000
Additional Funds (first 6 months) $25,000 $50,000
ESTIMATED TOTAL $97,100 $255,500
Other Fees
Type of Fee Amount
Royalty and Service Fee 10% of the monthly Gross Revenue subject to a monthly minimum of $500 for the third through ninth month of operation and $1,000 for the tenth month and each month going forward.
Advertising Fee 3% of the monthly Gross Revenue.
Transfer/Training Fee 40% of the then current initial franchise fee.
Management Information System Fee $125 per month.
VoIP System Fee $100 per telephone line initial fee; $40 per month.
Relocation Fee Oxford's out-of-pocket expenses incurred in considering request for approval for relocation, up to a maximum of $2,500
Renewal Fee 40% of the then current initial franchise fee.
Taxes Amount assessed to Oxford by federal, state or local tax authorities on any payments the franchisee makes to Oxford.
Audit Fee Cost of audit, from $0 to $20,000
Interest 18% per annum or maximum lawful rate (if less).
Late Payment Fee $50 or the maximum late charge allowed by applicable law, whichever is less.
Fees on default and Indemnity All amounts due.
Remodeling, Upgrade Costs $5,000 to $10,000

The above information has been taken from the FDD of Grade Power Learning. Year of FDD: 2016

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