About Class 101 Franchise
Class 101 is a college planning franchise that has been offering opportunities since 2007 under parent company Unleashed Brands, LLC.
Each location provides personalized guidance to high school students and their families on the college admissions process, including college selection, application preparation, essay coaching, and scholarship searches.
The brand's systematic approach helps families navigate one of the most important decisions of a young person's life.
Class 101 Franchise Cost & Fees
Minimum Investment
$69K
Average Investment
$83K
Maximum Investment
$98K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,900 | One-time payment upon signing |
| Royalty Fee | Greater of 8% of monthly Gross Sales or $500 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 2% of monthly Gross Sales to National Advertising Fund (NAF) and 4% for Local Marketing Expenditure. Total advertising obligation (NAF, Local Marketing, and Advertising Cooperative) not to exceed 6% of Gross Sales. | National brand fund |
| Total Investment Range | $68,900 – $97,900 | Includes build-out, inventory, working capital |
The investment range of $69K–$98K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of 8% of monthly Gross Sales or $500 per month) and marketing fee (Currently 2% of monthly Gross Sales to National Advertising Fund (NAF) and 4% for Local Marketing Expenditure. Total advertising obligation (NAF, Local Marketing, and Advertising Cooperative) not to exceed 6% of Gross Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,900 | $39,900 |
| Exterior signage | $2,000 | $5,000 |
| Lease and Tenant Improvements | $500 | $5,000 |
| Furnishings, Computer Systems, Security Surveillance System, Other Equipment & Supplies | $500 | $3,500 |
| Grand Opening Marketing | $10,000 | $15,000 |
| Security Deposits and Other Prepaid Expenses | $500 | $1,000 |
| Training Related Expenses | $2,500 | $5,000 |
| Insurance Premiums | $1,500 | $3,500 |
| Legal, Accounting and other Professional Fees | $1,500 | $5,000 |
| Additional Funds – 3 Months | $10,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of our then-current initial franchise fee if controlling interest (over 50%) is transferred to a new approved franchisee; 25% of our then-current initial franchise fee if controlling interest is transferred to an approved existing franchisee, plus reimbursement of our legal and professional expenses and our other costs incurred in connection with the transfer; or $3,500 but only if 20% or less of the total outstanding units in the Franchised Business are being transferred to an approved Owner and limited to one time per rolling twelve-month period. |
| Renewal Fee | 50% of our then-current initial franchise fee plus reimbursement of our legal and professional expenses and our other costs incurred in connection with the renewal |
| Technology Fee | Up to 1% of Gross Sales; currently up to $300 per month |
| Audit Fee | Reasonable cost of audit |
| Call Center Fee | The sum of the Service Fee and your pro-rata share of E-Commerce Variable Cost |
| Initial Training (additional persons) | Currently, $500 per day for each additional person |
| Additional Training | Currently $500 per day, plus reimbursement of our out-of-pocket costs |
| Conference Fee | Currently $500 per attendee; up to $1,000 per attendee |
| Additional On-Site Assistance | $500-$2,500 per day; plus our expenses for travel and accommodations |
| Compliance Review Fee | Actual cost of program, including purchases made as part of the mystery shop or audit |
| Dashboard Access License Fee | $10 per month per license |
| Supplier Review Fee | Reimbursement of our costs incurred in product testing and evaluating suppliers |
| Relocation Fee | 25% of our then-current initial franchise fee |
| Resale Program Fee | Currently, the greater of 4% of the purchase price paid for your Franchised Business or our then-current initial franchise fee (currently $39,900) |
| Interest | Lesser of 18% per year or maximum lawful rate in your state |
| Nonsufficient Funds Fee | $100 per occurrence, not to exceed maximum allowed by applicable law |
| Indemnification | Varies depending upon claim and resolution of claim |
| Liquidated Damages | The greater of: (1) $100,000, or (2) the average monthly Royalty Fee and NAF contribution paid by you in the 12-month period preceding termination multiplied by the lesser of (i) 36 months, or (ii) the number of months remaining in the franchise term |
| Public offering or private placement of your securities | Reimbursement of our actual costs and expenses incurred in having our legal and professional counsel review offering materials |
| Payment Processing Fee | Varies depending upon the volume of payments made by credit card |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 57 hours (33 classroom, 24 on-the-job) |
| Classroom Training | 33 |
| On-the-Job Training | 24 |
| Training Location | Lexington, KY |
| Additional Training | Franchisor may prescribe optional and mandatory continuing training programs (regional training, conferences) without charge, but franchisees are responsible for travel, lodging, meals, and a conference fee (currently $500-$1,000 per attendee). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically, an average household income above $65,000, a population of approximately 8,000 students aged 13 to 18, and a minimum of six public or private high schools. |
| Description | The Protected Area will be determined by us and may be based upon zip codes, geographic boundaries, or a radius surrounding the Approved Location. It may differ from the initial Site Selection Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 8 years |
| Renewal Term | Two additional, consecutive five-year successor terms |
| Renewal Fee | 50% of our then-current initial franchise fee plus reimbursement of our legal and professional expenses |
| Renewal Conditions | Provide notice; no default; renovate/modernize premises; comply with training; right to possess premises; no pattern of non-compliance; execute general release; sign then-current franchise agreement (which may have different terms). |
| Transfer Fee | 50% of our then-current initial franchise fee if controlling interest (over 50%) is transferred to a new approved franchisee; 25% of our then-current initial franchise fee if controlling interest is transferred to an approved existing franchisee, plus reimbursement of our legal and professional expenses and our other costs incurred in connection with the transfer; or $3,500 but only if 20% or less of the total outstanding units in the Franchised Business are being transferred to an approved Owner and limited to one time per rolling twelve-month period. |
| Transfer Conditions | All monetary obligations satisfied; full compliance with agreements; execute general release; transferee meets franchisor's standards; transferee signs then-current franchise agreement for remaining term; transferee agrees to refurbish premises; transferor remains liable for pre-transfer obligations; transferee complies with training; economic terms of transfer do not adversely affect viability. |
| Termination for Cause | Franchisor can terminate for various defaults, including failure to identify a site, maintain insurance, complete training, open on time, pay fees, misuse proprietary marks, infringe third-party rights, violate health/safety laws, use unapproved suppliers/items, maintain false records, violate laws, or fail to maintain minimum customers. Termination without cure is possible for bankruptcy, abandonment, failure to counsel 20 students annually, loss of location rights, false application statements, felony conviction, violation of confidentiality/non-compete, multiple failed inspections, or cross-default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For a two-year period following termination or expiration, neither franchisee nor any owner may be involved in any Competitive Business (similar to Class 101) located at the former franchised business location, within a 25-mile radius of the former location, within the Protected Area of any other Class 101 business (or 25 miles of its border), or delivering services through internet/mobile channels to customers within a 25-mile radius of the former location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must be supervised at all times by a Designated Manager, who may be an Owner. The Designated Manager must attend and complete initial and all required training, devote substantial full-time and best efforts, in person on a daily basis, to the supervision, operation, and conduct of the Franchised Business, and sign a Confidentiality and Noncompete Agreement. Franchisor must approve the Designated Manager. |
| Required Suppliers | Franchisee must purchase from franchisor or Designated Suppliers all requirements for developing, constructing, and operating the Franchised Business, including fixtures, equipment, POS systems, CRM software, signs, decor, architect services, uniforms, retail merchandise, advertising materials, gift certificates, stationery, supplies, Workers’ Compensation insurance, local/regional marketing services, reputation management, and other required products/services. Franchisor or its affiliates are the only approved suppliers for retail merchandise, software licenses, signage, technology solutions, DISC profiles, workbooks, instructional material, and accounting support services. |
| Supply Restrictions | If a product or service is required from a Designated Supplier, and franchisee wishes to use an alternate supplier, written approval is required. Approval is conditioned on product quality, traceability, consistency, pricing, supplier financial condition, corporate social responsibility policies, reliability, labor relations, client relations, frequency of delivery, concentration of purchases, and service standards. Franchisor may inspect facilities and test samples. |
| Franchisor Revenue from Suppliers | During the fiscal year ending December 31, 2021, our predecessor received revenues from required purchases or leases by franchisees of $76,904 (9.7% of total revenues) and rebates from third-party suppliers of $39,033 (4.93% of total revenue). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, but we may develop relationships with preferred lenders or financing sources, which we may, when established, make available to you. We do not guarantee your note, lease, or other obligations. |
Class 101 Franchise Earnings — Item 19
Average Revenue
$165K
Median Revenue
$133K
Sample Size
32 units
Past financial performance does not guarantee future results. Individual results will vary.
Class 101 Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Class 101 System Growth
Total Units
50
Franchised
49
Company-Owned
1
Class 101 currently operates 49 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 4 | 44 |
| 2020 | 4 | 3 | 45 |
| 2021 | 6 | 2 | 49 |
Transfers: 3 | Closures: 9
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$792K
Class 101 Franchise — FAQ
The total investment to open a Class 101 franchise ranges from $68,900 to $97,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $39,900. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Class 101 charges a royalty fee of Greater of 8% of monthly Gross Sales or $500 per month of gross sales, plus a Currently 2% of monthly Gross Sales to National Advertising Fund (NAF) and 4% for Local Marketing Expenditure. Total advertising obligation (NAF, Local Marketing, and Advertising Cooperative) not to exceed 6% of Gross Sales. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Class 101 Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Class 101 to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Class 101 franchise owners report average revenue of $165K and median revenue of $133K. This is based on a sample of 32 units. Past performance does not guarantee future results.
Class 101 has been franchising since 2007. The FDD shows an investment range of $68,900-$97,900, a Greater of 8% of monthly Gross Sales or $500 per month royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $39,900 and the total investment ranges from $68,900 to $97,900 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Class 101 and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Class 101 or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com