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Tudor Doctor Franchise Costs & Fees

Date of Incorporation: 2000
Franchising Since: 2005
U.S. Headquarters: Wilmington, Delaware
Country of Origin: Canada

Business Description: A Tutor Doctor franchise serves its customers by operating a tutoring educational business within a uniform system consisting of high standards of service, using quality educational and tutoring products, and operating in accordance with the business format created and developed by Tutor Doctor (the System). The System offers affordable tutoring and online services at a student's home. This franchise system or platform offers an effective alternative to students and parents who prefer to receive tutoring help in their own home instead of traveling to a learning center. Tutor Doctor provides affordable “One-on-One” supplementary educational support to students. This empowers students to develop, pursue, and achieve their educational goals.

Franchise Offer: A Tutor Doctor franchisee provides “Tutor Doctor” services. There are three types of franchises offered:
(a) a Local Territory Franchise; (b) a Regional Territory Franchise; and (c) a National Territory Franchise.

The franchisor also offers the option of an Empire Builder franchise. Prospective franchisees must pass the franchisor’s rigorous screening process and must not have been convicted of any crime against a child. The franchisor also requires background checks for the teachers and instructors employed by franchisees.

Financial Assistance: Tutor Doctor does not currently offer direct or indirect financing. Also, Tutor Doctor will not guarantee a franchisee’s note, lease or other obligation.

Training and Assistance: Tutor Doctor will instruct and train the franchisee and/or managers. The franchisee and managers must successfully complete training to Tutor Doctor’s specifications. There is no charge for this training or service for up to two people. Training occurs in Toronto, Canada under the supervision of the Director of Knowledge Management and IT. Additional staff may be used to assist with the training. Training instructors must have at least two years of experience with Tutor Doctor and in the subjects being taught. The franchisee or personnel must attend and successfully complete additional training and re-training sessions that may be offered periodically, and must pay Tutor Doctor the then current fees for the training. Tutor Doctor conducts an annual conference for its franchisees to discuss and review new business, marketing, technology and training ideas and concepts.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that are owned by Tutor Doctor, or from other channels of distribution or competitive brands that Tutor Doctor controls. The size of the territory is dependent on which one of the types of franchises offered is selected. Local Territory is defined by zip code boundaries and will include approximately 75,000 to 100,000 people. Regional Territory shall be comprised of a state or an equivalent territory. A Regional Territory will include a Local Territory situated within the Regional Territory. This Local Territory will be the focus of Franchisee’s Business. A National Territory consists of the country of the United States of America. As part of a National Territory Franchise, Franchisee will also be granted a Local Territory situated within the National Territory. This Local Territory will be the focus of Franchisee’s Business.

Term of Agreement and Renewal: The length of the franchise term is 10 years. The franchisee may renew for up to three additional terms of five years each if all requirements are met.

Obligations and Restrictions: While the Franchise Agreement does not specifically require the franchisee (or principals, if the franchisee is an entity) to participate personally in the direct operation of the Franchise, Tutor Doctor intends to select as franchisees only those principals of franchisees who plan to participate actively in the direct operation and daily affairs of the Franchise. Tutor Doctor does not seek to sell franchises to franchisees or principals of franchisees who are looking for a passive investment. In addition, the Franchise Agreement does provide that Franchise can only be operated directly by a general manager who has successfully completed the training program conducted by Tutor Doctor as well as any other training programs that Tutor Doctor may reasonably require. Tutor Doctor must be informed in writing about the general manager's character and financial and business background. The franchisee must hire one instructor/technician for each Franchise and ensure that the instructors attend and complete all required training and certification programs. The franchisee must comply with all standards of quality and service prescribed by Tutor Doctor.

Estimated Number of Units: 475

Investment Tables:
Initial Investment
Name of Fee Low High
Franchise Fee $44,700 $59,700
Rent Deposit, Prepaid Rent, Utility and Phone Deposits $0 $500
Insurance Initial Payment $1,300 $3,000
Computer and Software $1,000 $5,000
Printing $1,500 $1,500
Market Advertising and Promotion $3,000 $13,000
Phone and Fax $500 $500
Training $2,000 $2,000
Additional Funds - 3 months $5,000 $10,000
Professional Fees $1,500 $3,000
Field Training $2,000 $2,000
Branded Vehicle $1,000 $1,500
Estimated Totals $68,500 $111,700
Other Fees
Type of Fee Amount
Transfer $10,000 charged to prospective franchisees at the time of transfer, plus any applicable broker or commission fees.
Initial Training No fee paid to the franchisor for two individuals attending the training program. $2,500 per person for additional trainees. Franchisees responsible for costs and expenses from attending training.
Additional Training Then current tuition rate plus expenses.
Management Services Fees The greater of 8% of Gross Revenue, or the minimum management services fee due. The minimum management services fee due will be:
(a) $300 per month for a Local Territory Franchise; (b) $400 per month for a Regional Territory Franchise; (c) $500 per month for a National Territory Franchise; and $700 for an Empire Builder Franchise.
Marketing and Advertising Spend $1,000 for Local Territory, Regional Territory, and National Territory Franchises; $1,500 for an Empire Builder Franchise.
Branding Fee 2% of Gross Revenue.
Cooperative Marketing The franchisee’s pro rata share of any marketing conducted.
Renewal $5,000
Interest 1.5% per month or the highest applicable rate, whichever is less.
Audit Fees Cost of audit plus interest on underpayment.
Tutor Doctor Call Center $0.75 per minute during calls; $25 for each booked consultation.
Indemnification Will vary under circumstances.
Costs and Attorneys' Fees Will vary under circumstances.
Liquidated Damages If the franchisee’s Franchise Agreement is terminated for cause, the franchisee must pay the franchisor within 15 days after the effective date of termination liquidated damages equal to the average monthly management services fees the franchisee paid to the franchisor during the 12 months of operation preceding the effective date of termination multiplied by (a) 24 (being the number of months in two full years), or (b) the number of months remaining in the Agreement had it not been terminated, whichever is higher.
Bank and Credit Card Authorization Denial $50
Technology Fee $100 per month.
DBA Conference Fee $599 to $699 per person, payable by credit card or EFT.

The above information has been compiled from the FDD of Tutor Doctor. Year of FDD: 2016

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