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Club Z! Franchise Cost & Fees

Date Incorporation: 1995

Franchising Since: 
1998

Headquarters: Florida

Description: In the CLUB Z! System, the franchisees recruit qualified teachers to perform services for students. The System uses these qualified teachers to tutor children one-on-one in the child's home using a wide variety of textbooks, workbooks and computer programs. The tutoring programs improve academic skills as well as attitudes towards learning. The tutors work in partnership with the child's classroom teachers.

Franchise Offer:
The franchisee on offer to qualified persons is to own and operate a CLUB Z! In-Home Tutoring franchise business offering affordable tutoring services.

Financial Assistance:
The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.

Training and Assistance:
The franchisee must attend and successfully complete to the franchisors satisfaction the initial training program that they provide to franchisees. The initial training lasts for approximately 2 days and is presently conducted at the franchisors headquarters in Tampa, Florida, by telephone or at another mutually agreed upon location. Successful completion consists of attending the 2 day training program.

Territory: The franchise is granted for a specific territory consisting of a population of 50,000 to not more than 200,000. As long as the franchisee is in compliance with the Franchise Agreement, the franchisor will not grant a franchise for, nor themselves operate, solicit nor accept sales for a CLUB Z! business within the franchisee’s Territory

Term of Agreement and Renewal: The term of the franchise agreement is 7 years and it automatically renews if the franchisee is in full compliance of the franchise agreement. The renewal fee is $750.

Obligations and Restrictions: The franchisee is obligated to participate personally in the direct operation of the CLUB Z! Business. If the franchisee does hire a manager, that manager cannot have an interest or business relationship with a competing business. The franchisee must also offer for sale all products, and perform all services, that the franchisor requires from time to time for CLUB Z! Businesses.

Total Number of franchises Units:
The total number of franchised units for 2008: 431

Investment Tables:

Initial Investment:

Name of fee Low High
Initial Franchise Fee $19,500 $44,500
Shipping & Handling Franchise Package $250 $250
Travel and Living Expenses during Training $1,000 $1,500
Miscellaneous Opening Costs $500 $500
Computer and other Equipment, Supplies $550 $1,200
Insurance $700 $1,500
Additional Funds - 3 months $5,000 $7,000
Total Estimated Initial Investment under program (excluding real estate costs) $27,500 $56,450

Ongoing fees:

Name of fee Amount
Royalty    The greater of: 6% of Gross Sales or: (a) $350 per month for up to 50,000 population; (b) $450 per month for up to 100,000 population; (c) $550 per month for up to 150,000 population; or (d) $550 per month for up to 200,000 population
Advertising Fund 2% of Gross Sales per month
Additional Training $300 per person
Training of Transferee $3,500
Transfer $2,000
Replacement Manual $500
Renewal Fee $750
Costs and Attorneys' Fees Will vary under circumstances
Indemnification Will vary under circumstances

 
The above information has been taken from the UFOC/FDD of Club Z!

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