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Learning Express Toys Franchise Costs & Fees

Date of Incorporation: 1987
Franchising Since: 1990
Headquarters: Devens, Massachusetts

Business Description: Learning Express Toys franchises the right to operate a retail specialty toy store featuring toys, books, games, personalized gifts, and children’s accessories under a Local Store Franchise Agreement.

Franchise Offer: The franchise offered is for the operation of a single retail toy and children’s gift business featuring toys, books, games, personalized gifts, and children’s accessories.

Financial Assistance: Learning Express Toys does not offer any direct or indirect financing to franchisees.

Training and Assistance: Learning Express Toys will provide a New Store Owner Training Program for the franchisee and their designated management staff in the operation of the franchise. If the franchisee employs a manager, the manager must attend New Store Owner or Manager Training. The training will take place at corporate headquarters in Devens, Massachusetts and the Affiliate store in Bedford Massachusetts. The training program is mandatory and the franchisee and/or the designated manager must attend and complete the training to the franchisor’s satisfaction before opening.

Territory: The franchisee is granted a designated territory located within a specific geographic area defined by zip codes, streets, city, town, drive times, and natural boundaries and/or by a distance radius. As long as the franchisee is not in default under the Franchise Agreement, the franchisor will not place another Local Learning Express Store Franchise or operate a brick-and-mortar Learning Express Store selling similar products under different trademarks, service marks, or logos within the Designated Territory without the franchisee’s permission.

Term of Agreement and Renewal: The initial length of the franchise term is 10 years, unless terminated earlier. The franchisee may renew the franchise for two successive 10 year terms.

Obligations and Restrictions: The franchised store must always be under direct full-time supervision of the franchisee or a fully-trained manager. If the franchisee owns more than one Learning Express Toys franchise, the franchisee will be expected to oversee all of the stores, each of which must be managed by a full-time manager who has attended either the Learning express New Store Owner Training or Manager Training program. The franchisee is required to offer and sell those products that are specifically approved by the franchisor.

Estimated Number of Units: 135

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Lease & Leasehold Improvements $5,000 $80,000
POS Equipment & Software $12,550 $12,550
POS Software License Fee $4,950 $4,950
Signage $4,000 $8,000
Furniture, Fixtures, and Equipment $20,000 $42,775
Organizational and Training Costs $3,500 $7,000
Opening Inventory $90,000 $150,000
Grand Opening Advertising $7,500 $7,500
Initial Gift Card Program Setup Fees $375 $375
Insurance $2,000 $6,000
Additional Funds (Working Capital) $15,000 $30,000
ESTIMATED TOTAL $199,875 $384,150
Other Fees
Type of Fee Amount
Royalty Fee 5% of Gross Receipts.
Advertising 1% of Gross Receipts contribution, if Learning Express National Advertising Fund is formed.
Additional Assistance Reasonable travel and lodging expenses.
Gift Cards and Gift Card Holders $150 and $50 respectively.
Email Marketing Service $25 - $100 monthly.
Audit Costs Cost of examination.
Transfer Fee $15,000
Franchise Renewal Fee None.
Costs and Attorney’s Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Late Payment (Interest) 3% per month or the maximum interest rate permitted by state law, whichever is less, on all amounts due not paid on time.
CounterPoint Enhancement Fee $250 annually.
Shared Server Fee $180 annually.
Hardware Support & Hosting Services $100
QuickBooks Online Fee $15
E-commerce Order Fee 7% of web orders fulfilled by the franchisee’s store.
Music Subscription Service $35 monthly.

The above information has been taken from the FDD of Learning Express Toys. Year of FDD: 2016

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