How To's

How Much Does a Primrose Schools Franchise Cost?

Published

4 years ago

February 12, 2021

The education sector continues to thrive despite uncooperative circumstances. This makes education organizations an excellent business opportunity. So, if you’re looking into franchising an education-related venture, Primrose Schools is a first-rate choice. It’s one of the leading private preschool organizations that offers a purposeful curriculum for early education and infant care. Therefore, we’ll break down the Primrose Schools franchise cost, training, territory, and all conditions for interested franchisees.

Company Overview

Owning a Primrose Schools franchise entails the development and establishment of early education activities and child care services. Since 1982, Primrose Schools have proven their excellence in offering quality education that revolves around consistent experience and safety for both families and children.

The organization is an accredited private preschool that partners with other foundations to give and receive support. This not-for-profit organization garners funding from both the national support center and their schools to continue what they love doing best.

Primrose Schools promises an innovative educational system that fosters relationships and offers a brighter future for the younger generation. It wasn’t until 1988 that Primrose Schools began offering franchise opportunities to willing and like-minded individuals to disseminate their advocacies. The community has expanded to over 375 schools in more than 29 states, catering to over 54,000 families and children.

Aside from being the first educational child care organization to get accreditation from CITA (Commission on International and Trans-Regional Accreditation), Entrepreneur also ranks Primrose Schools as the number one child care franchise on the Franchise 500 list.

But before we get to know what the Primrose Schools franchise cost is, here are other pertinent information about the franchise.

Training Summary

Primrose Schools Franchising SPE, LLC is the franchisor. The organization has the right to decline franchise operations if franchisees fail to complete and pass the training requirements.

Moreover, all franchisees must undergo all necessary training programs before moving onto the franchising process’s next stage. So, here is the summary of the Primrose Schools training:

Firstly, franchisees must attend the one-day New Franchise Owner Orientation training, which will be held at the Primrose Schools headquarters in Atlanta, Georgia.
The franchisor will then provide an exploratory study guideline for early education, which will entail reading assignments, online lessons, and more.
The franchisees will attend the School Opening Training, which will run for three days at the Primrose Schools headquarters or another chosen location by the franchisor
Franchisees must then participate in the week-long on-site training at a facility approved by the franchisor
The franchisees will then undergo the School Excellence Training, which lasts three days within a six to 12-month period
The franchisor may also require additional reading assignments, webinars, and online courses as part of the initial training program
Finally, the franchisor may require the franchisee to attend the national meetings as additional complementary training

Franchise Territory

The franchisor doesn’t grant exclusive territory to all Primrose Schools franchisees. However, the Franchise Agreement does include territory conditions for franchisees that will commence until the second anniversary of the contract’s date.

Another key point to remember is the franchisor doesn’t allow other franchisees or affiliates to establish or develop other facilities save for the Primrose on Premise area in the chosen development location.

Additionally, the franchisees can rest assured that the franchisor will not modify the area if the franchisee is still within its Franchise Agreement term. In case another facility opens, the development location will be nullified.

Franchise Obligations and Conditions

The franchisee must ensure that they supervise the facility at all times. If the owner is unavailable, they must let a director or assistant director manage the facility unless the franchisor approves otherwise.

The franchisees must also implement a confidentiality policy in which all directors, managers, and employees must comply.

The franchisees or owners must also sign a performance and payment guarantee. Hence, this entails the owner or franchisee to non-compete provisions and confidentiality policies under the Franchise Agreement.

Finally, the franchisees should operate the facility while offering child care services and early education to families and children. Not to mention, the franchisee must only sell products that are approved by the franchisor.

Franchise Term and Renewal

The initial franchise term is 10 years. But, the franchisee may be eligible to renew for two 10-year successor terms if they adhere to the Franchise Agreement requirements.

Franchise Financial Aid

The franchisor doesn’t guarantee indirect and direct financing to the franchisee. However, the franchisor may offer a lease program to cover property rent under certain limitations. Also, the franchisor may suggest other financing companies to provide financial assistance to franchisees.

Did You Know?

Here are some interesting facts you should know about Primrose Schools:

The company hit a groundbreaking record of opening 24 new Primrose Schools locations in a year!
Primrose Schools is the first early education company that integrates the use of wireless laptops for both students and teachers
The not-for-profit organization has donated around $3.5 million to charities such as Reach Out and Read, Save the Children, Children’s Miracle Network, Ronald McDonald Charities, Zero to Three, and more.

Primrose Schools Franchise Cost

Your Investment:

Here is the total breakdown of the Primrose Schools franchise cost:

Name of Fee	Low	High
Initial Fee	$50,000	$80,000
Real Estate Fee for build-to-suit or independent development program	$25,000	$25,000
Real Estate Fee Deposit for permanent lease program	$20,000	$20,000
Balance of Real Estate Fee for permanent lease program	$35,000	$50,000
Other Real Estate and Development Costs for permanent lease or independent development program	$2,288,000	$5,337,000
Security Deposit for Lease and Limited Rent Guarantee Fee not for independent development program	$15,000	$125,000
Utility Security Deposit	$10,000	$30,000
School Equipment and Supplies	$222,000	$340,000
Insurance	$5,000	$10,000
Initial Training and Opening Support Fee	$35,000	$35,000
Marketing, Advertising and Grand Opening	$40,000	$45,000
Transportation Vehicle	$900	$42,000
Licenses	$4,000	$7,000
Miscellaneous	$10,000	$45,000
Financing Cost	$55,000	$233,000
Additional Funds – 3 months	$180,000	$420,000
ESTIMATED TOTAL for build-to-suit program	$651,900	$1,279,000
ESTIMATED TOTAL for permanent lease program	$3,146,900	$4,560,700
ESTIMATED TOTAL for independent development program	$4,527,400	$6,726,000

Other Costs:

Type of Fee	Amount
Continuing Services and Royalty Fee	7% of gross revenues.
Primrose Brand Fund Fee	2% of gross revenues. However, it may also be increased by the franchisor, but not more than a total of 3% of gross revenues.
Local Advertising	1% of gross revenues for preceding month or $1,000. Or whichever is greater.
Cooperative Contributions	It’s up to 1% of gross revenues for the previous month, unless otherwise agreed by members of the cooperative.
Cognia Accreditation	$900.
Late Fee	Interest at 1.5% per month. There’s also a 5% late fee on past due amounts, along with NSF charges.
Transfer Fee	For any control transfer, franchisees must pay a 40% transfer fee of the then-current initial fee for existing franchises purchasing a new facility. This also includes costs and expenses incurred by the franchise. Moreover, the transferee should pay a non-refundable initial fee equal to 60% of the then-current initial fee for existing franchisees purchasing a new facility. But, if it’s not a control transfer, franchisees should pay the then-current transfer fee for transfers that don’t result in a control transfer. It’s also $3,250 to add a new owner and $1,250 to remove one.
Transfer Training Fee	Same amount as the initial training and opening support fee. At this time, the amount is $35,000.
Successor Term Fee	It’s 10% of the then-current initial fee for existing franchisees purchasing a new facility.
Successor Term Training Fee	The successor term training fee is $5,000. It also covers training for two owners.
Additional Training Fee	The current hourly rate. It also includes all costs and expenses that the franchisor incurs. Furthermore, it’s $100 per hour for each trainer, not to exceed $750 per day for each trainer. It’s also subject to adjustment upon 30 days’ written notice.
National Conference Registration Fee	The current rate per attendee. The fee is $550 per attendee at the National Conference if the registration is made by a certain deadline, and $750 per attendee thereafter, but it is subject to change.
Training Programs Fee	A fee that the franchisor may set for each training program. It also varies from program to program.
Additional Consulting Services Fees	A reasonable fee, up to $750 daily. It also includes travel and living expenses, including transportation, lodging and meals.
Temporary Management Fee	The current daily rate = $750. It also includes all costs and expenses that the franchisor incurs.
Remedial Expenses	All costs and expenses that the franchisor incurs.
Follow-up Inspection Fee	All costs and expenses that the franchisor incurs.
Product, Service or Supplier Review Fee	The current daily rate = $750. It also includes all costs and expenses that the franchisor incurs testing or reviewing such items or suppliers.
ACH Fees	Amount of the franchisor’s expenses.
Indemnification	The franchisor’s losses, costs, expenses. This also includes attorneys’ fees, and damages.
Damages Upon Expiration or Termination	The franchisor’s damages, costs, and expenses. It also includes without limitation, lost future royalties and reasonable attorneys’ fees.
Facility Expansion Fee	At this time, it’s $10,000
Relocation Fee	The franchisor’s actual costs and expenses. This also includes any other development fees that would be charged to develop a new facility as well.
Lease Review Fee	The franchisor’s actual costs and expenses. This also includes attorneys’ fees.
Academic Curriculum Material License Fee	$450 – $480 per certain specified classrooms as specified annually. It’s also $1,400 – $1,600 per school annually.

So, if you’re interested in opening a Primrose Schools franchise, visit their website for more information. In addition, for other franchise information, you can check more resources here at Franchise How!

How To's

The Rise of Paris Banh Mi Franchise

Published

8 months ago

March 15, 2024

Peter Bolic

Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida.

But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .

About Paris Banh Mi

The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.

The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience.

The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now, Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.

In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026.

Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.

Source: Paris Banh Mi website

For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.

Source: Paris Banh Mi website

Why Own a Paris Banh Mi Franchise

Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:

It opens a great opportunity and is more profitable.
Seamless franchising process and fewer things to worry about
Required low capital to open
Higher end-of-year profits

The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises.

The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option.

Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.

Licensing Information

Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.

You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are:

Passionate about food, especially fresh baguettes and pastries
A self-starter with a proven track record in business
Financially responsible with a focus on results
Ready to fully commit to building the Paris Banh Mi brand

If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page.

Conclusion

Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product. If you are ready to take a bite out of success, contact Paris Banh Mi today!

How To's

Chick-fil-A Franchising Opportunities in 2024

Published

8 months ago

March 14, 2024

Dan Wesson

Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024.

Company Overview

Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today.

Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States.

Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946.

Franchise Training Details

The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary.
The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing.
The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement.

Franchise Territory

The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location.
Franchisees will not get exclusive or protected territory, so they may face competition from other operators.

Franchise Obligations and Conditions

Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant.
The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck.

Franchise Term and Renewal

The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires.

Financial Assistance

The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location.
The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.

Did You Know?

Here are some fun facts about Chick-fil-A you need to know!

Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year.
Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff.
You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal.

Franchise Cost

Your Investment

Name of Fee	Low	High
Initial Franchise Fee	$10,000	$10,000
Opening Inventory	$13,500	$140,000
First Month’s Rental of Equipment	$750	$5,000
First Month’s Lease/Sublease of Premises	$2,550	$85,500
First Month’s Insurance Expense	$240	$12,000
Additional Funds	$491,345	$2,550,935
ESTIMATED TOTAL	$518,385	$2,803,435

Other Fees

Type of Fee	Amount
Advertising	May vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas.
Advertising Support and Services Fee	Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable.
Additional Franchise Fee	$5,000 for each additional Chick-fil-A restaurant business.
Business Services Fee	$300 (monthly).
Rent (Traditional Restaurant)	$2,550 to $85,500 (including where applicable, percentage rent).
Occupancy Charge (Satellite Unit)	Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts.
Food Truck Usage Fee (Food Truck)	Currently $2,100 to $3,100, plus additional fees, costs and expenses.
Food Truck Insurance Fee (Food Truck)	Currently $250 to $450 (monthly).
Insurance	$240 to $12,000 (monthly).
Equipment Rental	Currently $750 to $5,000 (monthly).
Hardware and Software Support; High-Speed Internet Access	$9,500 to $20,000 (annually).
Fines – Minimum Standards and Procedures	Will vary under the circumstances.
Indemnification	Will vary under the circumstances.
Operating Service Charges	Determined by formula.
Credit Cards Fees and Related Processing Fees	Will vary.
Highway Signage	Will vary under circumstances.
Interest on Late Payments	The maximum rate permitted by law, or if none, 1.25% per month.
Cash Handling System Services	$85 to $450 (monthly)
Reimbursement of Cost of Performance	Costs and expenses of performance.
Holdover Liquidated Damages	Double the base rent and percentage rent.

Here are the Chick-fil-A franchise costs:

If you’re looking for another investment opportunity, visit Franchise How’s website for more information.

How To's

Zoom Sewer and Drain Cleaning Franchise Cost

Published

8 months ago

March 12, 2024

Dan Wesson

Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:

Franchise Description

Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.

Training

Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:

Phase 1: 2 to 3 days training at the Franchise Business
Phase2: 2 to 3 days in Norristown, PA

The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.

Territory

The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory.

The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.

Obligations

The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.

Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.

Term of Agreement

The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.

Financial Assistance

Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.

Did You Know?

Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:

They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
They have a reported $12 million in revenue with 53 employees and 15 franchisees

Your Investment

The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Lease	$3,000	$9,000
Leasehold Improvement	$2,000	$40,000
Furniture, Fixtures and Computer System	$7,500	$13,000
Vehicles	$7,000	$9,500
Vehicle Wrap and Design	$4,500	$5,500
Initial Equipment and Inventory of Supplies	$40,000	$50,000
Business Licenses and Permits; Deposits and Pre-Paid Expenses	$0	$5,000
Professional Fees	$500	$3,000
Insurance – Quarterly	$4,000	$6,000
Initial Training Expenses	$500	$3,000
Initial Marketing Expenses	$45,000	$60,000
Additional Funds – 6 months	$50,000	$100,000
ESTIMATED TOTAL	$199,000	$341,000

Other Costs

Type of Fee	Amount
Royalty Fee	5% of Net Sales.
Marketing Fee	Up to 2% of Net Sales. Currently, the franchisor does not charge this fee.
Call Center Fee	Up to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee.
Technology Fee	The then-current Technology Fee; currently $500 per month.
Webpage Development and Optimization Fee	The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month.
Additional Location Fee	The then-current Additional Location Fee; currently $2,000.
Transfer Fee	Up to 50% of the then-current Initial Franchise Fee.
Renewal Fee	Up to 25% of the then-current Initial Franchise Fee.
Additional Training and Assistance	Fee and all expenses. Currently $1,000 per day plus travel expenses.
National Conference	Reasonable fees and all expenses.
Testing for Supplier Approval	Reasonable fee.
Interest on Late Payments	Lesser of 1.5% per month or maximum legal rate.
Audit Fee	Cost of audit.
Taxes	Actual cost.
Indemnification	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.