How To's
How Much Does a Tutor Doctor Franchise Cost?
Not all students can keep up with a school’s curriculum. In reality, the current classroom setting is not sufficient in unlocking a child’s full potential. By acquiring a Tutor Doctor Franchise, it can help struggling individuals within your area. If you’re interested, here’s everything you need to know about the franchise.
Tutor Doctor Overview
Tutor Doctor began its business in 2000 after realizing how each student struggled due to different learning styles. It started franchising in 2005 and has grown to 685 units over the years. The current president, Frank Milner, met the founder of Tutor Doctor in 2017. It’s the phase where the company was struggling to maintain its success. Using his expertise, Milner helped form Tutor Doctor into what it is today.
The Franchise Description
Tutor Doctor’s franchisor name is Tutor Doctor Systems Inc. The franchise offers the full operation under the name “Tutor Doctor,” which provides an affordable rate for tutoring service in-home. It provides an effective alternative to learning for students and parents who prefer receiving tutoring help inside the comforts of their home.
Tutor Doctor Franchise Training
It’s essential to participate and complete the franchisor’s required initial training program. This program requires the following to participate:
- Franchisee or operating principal
- Additional individual for management (if applicable)
The initial training program includes eLearning, virtual or online training, and in-class training. Usually, in-class training is conducted in the franchisor’s headquarters or another location, depending on the franchisor.
In this program, the franchisee may enroll three persons, including the manager and operation manager. Also, it’s possible to request the franchisor to give on-site training in addition to the initial training. It’s required to attend bi-annual or annual conventions.
Territory Granted
The franchise territory is the geographic area where franchisees can operate their business in. However, the franchisee will not be able to receive an exclusive territory in their area. It means that you can face competition from the other franchisees, the outlets the franchisor owns, and other competitive brands.
The franchise of Tutor Doctor has three types:
- Local Territory
It is defined by a zip code boundary that includes approximately 75,000-100,000 people.
- Regional Territory
Regional territory includes a state or equivalent territory that you can find in the Franchise Agreement.
- National Territory
Typically, it consists of the entirety of the US.
Other than the three types of territory, the franchisor also offers an “empire builder program.” It includes either one national or regional territory along with two local territories.
As a potential franchisee, here are the obligations and restrictions you need to know:
- The franchise agreement doesn’t require the personal participation of the franchisee.
- If the franchisor belongs to an entity, you need to appoint a person who will serve as the operating principal.
- The delegated operating principal must supervise the franchise and complete the initial training program.
- The operating principal should have at least 50% of the “ownership interest” in the entity.
- If the chosen operating principal will not supervise the franchised business, hiring a full-time manager is essential.
- The franchisee should only sell or offer what the franchisor has approved.
Franchise Terms
The initial Tutor Doctor franchise term length is up to ten years. If the franchisee meets certain requirements, an additional 10-year franchise term is available.
Tutor Doctor Financial Assistance
Unfortunately, the franchisor does not offer indirect or direct financial support.
Did You Know?
- In 2016, Tutor Doctor ranked first place for In-Home Tutoring Franchise by Entreprenuer.com.
- Tutor Doctor bagged the “Most Innovative Franchisor” award in the UK.
- This year Tutor Doctor acquired Code Wiz, an award-winning company that teaches robotics and computer coding.
- Tutor Doctor’s franchise network continues to grow in the UK.
Your Investments
| 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 | $2,500 |
| Market Advertising and Promotion | $12,000 | $18,000 |
| Phone and Fax | $500 | $500 |
| Training | $3,000 | $3,000 |
| Additional Funds – 3 months | $15,000 | $30,000 |
| Professional Fees | $2,400 | $3,900 |
| Test Preparation Certification | $2,895 | $2,895 |
| ESTIMATED TOTAL | $84,295 | $128,995 |
Other Costs
| 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. Costs and expenses of attending training. |
| Additional Training | Then current tuition rate, plus expenses. |
| Royalty Fee | The greater of 8% of gross sales, or the minimum royalty fee due. |
| Branding Fund Contribution | 2% of gross sales. |
| Cooperative Marketing | The franchisee’s pro rata share of any marketing conducted. |
| Renewal | $10,000 |
| Interest | 1.5% per month or the highest applicable rate, whichever is less. |
| Audit Fees | Cost of audit plus interest on underpayment. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Liquidated Damages | If the franchisor terminates the Franchise Agreement for cause, franchisees must pay the franchisor (within 15 days after the effective date of termination) liquidated damages equal to the average monthly royalty fees that were due 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 less. |
| Bank and Credit Card Authorization Denial | $50 |
| Technology Fee | $150 per month. |
| Website Management Fee | $150 per month. |
| Education Payment Plan | A $60 monthly fee (subject to annual revision but not to exceed $120) per month. |
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