TOTAL $83,150 $125,800
NOTES
1� Franchise Fee. The
franchise fee for the first Tutoring Center is $34,500. For the second and each
subsequent Tutoring Center, we will reduce the franchise fee to $15,000. The
franchise fee is described in Item 5 of this disclosure document.
2� Real Property. You
must provide a location upon which to operate your center. Normally, a building
is obtained on a leasehold basis. The floor area recommended for a TUTORING
CLUB Tutoring Center is 1,000 to 1,200 square feet. The high estimate
represents a lease rate of $40 per square foot for 1,200 square feet of space.
The low estimate represents a rate of $18 per square foot for 1,000 square feet
of space. Additionally, there may be lease acquisition costs in the nature of
deposits. It is extremely difficult to estimate lease acquisition costs because
of the wide variation in these costs between various locations. Company will
not assist in financing this expenditure.
3� Utility Deposits. A
utility deposit may be required if you are a new customer of the utility
company.
4� Leasehold Improvements.
Initial leasehold improvements are required before operation. These costs again
vary based on the size of the business and requirements of a particular
landlord, depending upon whether or not the improvements are capitalized as
part of the lease.
5� Start-up Package. The
required start-up package you must buy from Team Big Guys, Inc. includes
tables, bookcases, shelving with TUTORING CLUB logo, books, chairs, slat walls,
and wall-hangers. You must order the start-up package and pay the fee at least
45 to 60 days before your Tutoring Center is scheduled to open. Team Big Guys,
Inc. will not order your items until you have paid for the start-up package.
6� Initial Inventory.
The initial inventory includes books and other products offered for resale
through the Tutoring Center, and in addition, includes 3 months'' fees for the
Tutoring Club software.
7� Insurance.
Requirements are described in Item 6 of this disclosure document. A 25% down
payment of the approximate annual premium is reflected in the lower amount. The
total approximate annual premium is represented by the high estimate.
8� Furniture and Fixtures.
The range represents the approximate costs associated with acquiring the
furniture, including desks, chairs, shelves and phone system.
9� Training. You are
responsible for arranging transportation and paying the expenses for meals and
lodging for any persons attending the training program.�� The amount expended will depend on the distance
you must travel and the type of accommodations you choose. The estimate
contemplates attendance by you and up to one employee traveling to Company''s
headquarters or other designated location for approximately 2 weeks.
10� Signage. This range
includes the cost of all signage used in the Tutoring Center.
11� Additional Funds.
Such amounts are the minimum recommended levels of working
capital to cover operating expenses during the first 3 months of operation,
including
employee''s salaries for 3 months. However, Company cannot guarantee that such
an
amount will be sufficient. Additional working capital may be required if your
revenues are
low or your costs are high.
In
compiling this chart, Company relied on its and Mr. Larry Schwartz''s experience
as the owner of Tutoring Centers similar to a franchised Tutoring Center. The amounts shown are estimates only and may vary for many reasons including the size
of your Tutoring Center, the capabilities of your management team, where you
locate your Tutoring Center and your business experience and acumen. For
planning purposes, please note that most costs and expenses listed in this Item
7 are not within our control and are affected by general economic conditions.
You should review these estimates carefully with a business advisor or
accountant before making any decision to buy a franchise. Company does not
offer direct financing to you for any item. All or part of your investment may
be financed by a bank or other lending institution on terms Company cannot
estimate. Once you sign the Franchise Agreement, no payments you make to
Company are refundable.
