About Club Z! Franchise
Club Z! In Home Tutoring is an education franchise providing affordable, one on one tutoring services delivered directly to students in their homes.
Qualified tutors work with children from pre kindergarten through college level, as well as adult learners, using textbooks, workbooks, and computer programs to improve academic skills.
The brand has been franchising since 1998.
Club Z! Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $19,750 to $39,750 | One-time payment upon signing |
| Royalty Fee | The greater of 8% to 6% of Gross Sales or $450 to $550 per month, depending on territory population and sales volume. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | The greater of: 2% of Gross Sales or $50 per month | National brand fund |
| Total Investment Range | $33,475 – $57,425 | Includes build-out, inventory, working capital |
The investment range of $33K–$57K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 8% to 6% of Gross Sales or $450 to $550 per month, depending on territory population and sales volume.) and marketing fee (The greater of: 2% of Gross Sales or $50 per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $19,750 | $39,750 |
| Travel and Living Expenses during Training (2) | $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 (5) (3months) | $225 | $225 |
| Club Z! Business Package (6) (3 months) | $750 | $750 |
| Initial Launch Advertising (7) (4 months) | $6,000 | $6,000 |
| Insurance (8) | $700 | $1,500 |
| Additional Funds – (3 months) | $4,000 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,000 |
| Renewal Fee | $250 |
| Technology Fee | $75 per month (for Software, Virtual Business Telephone Number, Web Hosting and Email Account) |
| Club Z! Business Package | $250-$300 per month |
| 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. |
| Conference Fee | Up to $295 per person |
| Training of Transferee | $3,000 |
| Early Termination Fee | Will vary under circumstances (equal to 180 days of your minimum Royalty/Support and Advertising Fund Fees) |
| Initial Advertising Launch | $1,500 per month for first 4 months |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2 to 4 weeks for web-based pre-training and post-training, plus 2 days of corporate training. |
| Classroom Training | 30 Hours |
| Training Location | Corporate headquarters in Tampa, Florida, online, or at another mutually agreed upon location. |
| Additional Training | Optional training programs and conferences are held, which may incur participation fees (up to $295 per person) and require franchisees to cover their own travel, food, and lodging. Attendance at these is not required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | a population of 50,000 to not more than 200,000 |
| Description | The franchise is granted for a specific protected territory with a population of 50,000 to 200,000. As long as the franchisee complies with the Franchise Agreement, the franchisor will not grant another franchise or operate a Club Z! business within this territory. Franchisees may operate from a home-based office or a commercial site within their territory, but tutoring services cannot be performed from a business office or retail/commercial site without written permission. A virtual business address within the protected territory is required for internet and social media advertising and marketing. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 Years |
| Renewal Term | successive periods of seven (7) years |
| Renewal Fee | $250 |
| Renewal Conditions | Franchisee must be in full compliance with the Franchise Agreement, complete any required training, sign the then-current form of franchise agreement (which may have materially different terms), sign a general release, and pay the applicable renewal fee. |
| Transfer Fee | $2,000 |
| Transfer Conditions | The franchisor has the right to approve all transfers. Conditions include the proposed assignee completing the franchisee application and meeting qualification standards, the transfer being on reasonable terms, the assignee assuming all obligations, the assignee signing the then-current franchise agreement, and payment of a $3,000 training fee and a $2,000 transfer fee. The franchisee must also sign a general release. |
| Termination for Cause | The franchisor can terminate for various violations, either immediately for non-curable defaults (e.g., false records, felony conviction, misuse of marks, abandonment) or after a 30-day cure period for curable defaults (e.g., failure to pay monies, unauthorized services, failure to complete training). |
| Non-Compete Period | 2 years |
| Non-Compete Details | After termination, transfer, or expiration of the franchise agreement, the franchisee (and their officers/directors/members/partners) may not solicit or recruit clients of their former Club Z! Business, any other Club Z! businesses, or any current or former Club Z! franchisees for a period of 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or their owners/manager) is obligated to participate personally in the direct operation of the Club Z! Business. If a manager is hired, they must not have an interest or business relationship with any competing business, are not required to have an equity interest, must successfully complete required training within 30 days of hire, and must sign a confidentiality agreement. |
| Required Suppliers | The franchisor is the exclusive vendor for Launch Advertising, Club Z! Business Package, Software, Virtual Business Telephone Number, Web Hosting and Email Account (“Support Services”). They are also an approved vendor for all trademarked materials. Franchisees are required to use QuickBooks by Intuit, Inc. as their accounting software and the franchisor's proprietary scheduling software. |
| Supply Restrictions | Franchisees may purchase equipment, supplies, and inventory items under specifications in the Operations Manual from suppliers approved by the franchisor. If a franchisee wishes to use a non-approved vendor, they or the supplier must request written approval, which involves an examination process by the franchisor. Specifications include standards for performance, competitive cost, quality, availability, compatibility, and supplier service/credit history. |
| Franchisor Revenue from Suppliers | The franchisor derives revenue from franchisee purchases of Support Services and trademarked materials, with a markup of approximately 10% to 12% to cover handling costs. As of December 31, 2022, this revenue totaled $15,217.49, accounting for 0.26% of total revenues of $5,852,881. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any franchisee's note, lease, or obligation. |
Club Z! Franchise Earnings — Item 19
Club Z! does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Club Z! Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Club Z! System Growth
Club Z! currently operates 352 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 35 | 42 | 359 |
| 2021 | 20 | 33 | 346 |
| 2022 | 36 | 30 | 352 |
Transfers: 37 | Closures: 105
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Club Z! Franchise — FAQ
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