Franchising Since: 1999
Headquarters: Tampa, Florida
Estimated Number of Units: 370
Franchise Description: The franchisor is Club Z!, Inc. In the Club Z! franchise system, franchisees, also referred to as area director 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.
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Territory Granted: The franchise is granted for a specific protected territory consisting of a population of 50,000 to not more than 200,000. Except as described in the FDD, as long as franchisees are in compliance with the Franchise Agreement, the franchisor will not grant a franchise for, nor itself operate, solicit nor accept sales for a Club Z! business within the territory. However, if franchisees fail to satisfy the terms and conditions in the Franchise Agreement, the franchisor may develop the Club Z! system and business in the territory. Franchisees may operate their Club Z! business office from a commercial site, however they are not permitted to perform any tutoring services from their business office or any retail or commercial site without written permission, which the franchisor can withhold at its sole discretion. Franchisees are also not permitted to operate a business office or perform services at any location or home that is situated outside of their territory without the franchisor’s written permission.
Obligations and Restrictions: Franchisees must at all times faithfully, honestly and diligently perform their obligations under the Franchise Agreement, continuously exert their full time and best efforts to promote, enhance and encourage patronage of all the Club Z! businesses and not engage in any other business or activity that conflicts with their obligations to operate the Club Z! business in compliance with the Franchise Agreement. Franchisees (or their owners/manager) are obligated to participate personally in the direct operation of the Club Z! business. Franchisees must offer all products for sale, and perform all services, that the franchisor requires from time to time for Club Z! businesses. Franchisees may not offer any products for sale or perform any services that the franchisor has not authorized.
Term of Agreement and Renewal: The length of the initial franchise term is seven years. The agreement automatically renews if franchisees are in full compliance with their Franchise Agreement and meet the requirements.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $27,250 | $39,750 |
| Travel and Living Expenses During Training | $1,000 | $1,500 |
| Miscellaneous Opening Costs | $500 | $500 |
| Computer and Other Equipment, Supplies | $550 | $1,200 |
| Software, Business Telephone Number, Web Hosting and Email Account (3 months) | $225 | $225 |
| Club Z! Business Package (3 months) | $750 | $750 |
| Initial Launch Advertising (4 months) | $6,000 | $6,000 |
| Insurance | $700 | $1,500 |
| Additional Funds (3 months) | $4,000 | $6,000 |
| ESTIMATED TOTAL (excludes real estate costs) | $40,975 | $57,425 |
Other Fees
| Type of Fee | Amount |
| Royalty/Support Fee | The greater of: 8% to 6% of gross sales or: $550 per month for up to 100,000 population. The greater of 6% of gross sales or: $550 per month for an expanded territory of up to 200,000 population. |
| Advertising Fund | The greater of: 2% of gross sales or $50 per month. |
| Club Z! Business Package | $250-$300 per month. |
| Virtual One-on-One On-Line Classroom Training | $1,500 |
| Late Fees | $100 initial fee, plus 1.67% or the maximum interest rate permitted by state law if less, of the amount due for each day after the due date that payment is not received. |
| Software, Virtual Business Telephone Number, Web Hosting and Email Account | $75 per month. |
| Conference Fee | Up to $295 per person. |
| Training of Transferee | $3,000 |
| Transfer | $2,000 |
| Early Termination Fee | Will vary under circumstances. |
| Initial Advertising Launch | $1,500 per month for first 4 months. |
| Renewal Fee | $250 |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
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