About The Resource Room Franchise
The Resource Room is an education franchise that provides specialized tutoring, academic support, and learning resources for students who need additional help outside the traditional classroom.
Operating under Resource Room NC LLC, the brand has been franchising since 2024 and focuses on creating personalized learning plans that address each student's unique academic challenges.
The franchise fee is $30,000.
The Resource Room Franchise Cost & Fees
Minimum Investment
$95K
Average Investment
$157K
Maximum Investment
$219K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 0 – 6 months: 10% of Gross Revenues. 7 – 12 months: Greater of $2,000 or 10% of Gross Revenues. 13th month and thereafter: Greater of $2,500 per month or 10% of monthly Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of monthly Gross Revenues (can increase to 2%) | National brand fund |
| Total Investment Range | $94,500 – $218,500 | Includes build-out, inventory, working capital |
The investment range of $95K–$219K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (0 – 6 months: 10% of Gross Revenues. 7 – 12 months: Greater of $2,000 or 10% of Gross Revenues. 13th month and thereafter: Greater of $2,500 per month or 10% of monthly Gross Revenues) and marketing fee (1% of monthly Gross Revenues (can increase to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Curricula and Testing Materials | $10,000 | $10,000 |
| Construction Leasehold Improvements | $0 | $75,000 |
| Design and Architect Fees | $0 | $5,000 |
| Furniture, and Computers | $25,000 | $35,000 |
| Signage (exterior) | $500 | $7,500 |
| Interior Graphics | $500 | $1,500 |
| Security Deposits, Utility Deposits, and Licenses | $500 | $6,500 |
| Equipment and Supplies | $3,500 | $6,500 |
| Insurance | $1,500 | $3,500 |
| Pre-opening Travel and Training Expense | $0 | $2,500 |
| Grand Opening Advertising | $7,500 | $7,500 |
| Professional Fees | $500 | $3,000 |
| Additional Funds | $15,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $6,000 |
| Renewal Fee | $6,000 |
| Technology Fee | Currently, $100 per month (can increase to $300 per month) |
| Audit Fee | Costs and expenses (paid if difference in reported royalties or revenue is 2% or greater) |
| Advertising Cooperative Fee | Any percentage contribution would be set by the cooperative on a vote of a majority of its members. Maximum fee 1% of Gross Revenues. |
| Shared Third Party Supplier Charges | Your share of any charges billed to us on behalf of your business. As incurred. |
| Business Directory Listings | Actual out-of-pocket costs. Upon demand. |
| Data Inspections and Reimbursement | Varies. Upon demand. |
| Legal Fees | Varies. Upon demand. |
| Relocation Fee | Costs and expenses. As incurred. |
| Interest | 2% per month or highest rate allowed by law. Calculated and payable monthly. |
| Late Fee | 10% of each late payment. As incurred. |
| Insufficient Funds Fee | $250 per violation. As incurred. |
| Testing or Supplier Approval Fee | Currently, costs and expenses. Upon request. |
| Additional Training | Currently $500 per day per person, plus our costs and expenses. As incurred prior to beginning of additional training. |
| Legal fees and expenses | Costs and expenses, including but not limited to attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. As incurred. |
| Indemnification | Any and all types of damages, liabilities, losses, costs, and expenses we incur as a result of third parties claims or from your ownership and operations of your Center. As incurred. |
| Early termination damages | Our damages, costs, and expenses. As incurred. |
| Post-Termination or Post-Expiration Expenses | Costs and expenses. As incurred. |
| Fines | $1,000 per occurrence. As incurred. |
| Refurbishment Fee | Our costs, plus an administrative fee of 15% of the expenses we incur. As incurred. |
| Continuing Operation Fee | Greater of $1,000 or 150% of the Royalty due for the same month for every month of month-to-month operations after termination or expiration of Franchise Agreement. As incurred. |
| Inspection of Franchise Business and Premises / Right to Information | Costs and expenses. As incurred. |
| Convention | Then-current fee (currently $1,000 per person). As incurred prior to the convention. |
| System Modifications | All costs and expenses associated with System modification. As required. |
| Insurance Reimbursement | Costs plus administrative fee of 10% of costs. As incurred. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 94 hours |
| Classroom Training | 52 hours |
| On-the-Job Training | 42 hours |
| Training Location | Virtual/Holly Springs, NC and onsite at Franchisee Location |
| Additional Training | Additional training may be offered or required by the franchisor. The current fee is $500 per day per person, plus costs and expenses, and is incurred prior to the beginning of additional training. Franchisees are responsible for all associated travel, lodging, food, per diem expenses, and wages for trainees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Smaller of an area containing approximately 25,000 children (ages 5-19) or a 5-mile radius of the Center |
| Description | A protected territory designated in the Franchise Rider, typically the smaller of an area with approximately 25,000 children (ages 5-19) based on the latest U.S. Census or a 5-mile radius of the Center. This protection prevents the franchisor or other franchisees from establishing brick-and-mortar Resource Room Centers within the territory, but excludes Non-Traditional Locations (e.g., malls, hospitals, airports, theme parks, sports arenas, kiosks, carts, vans, limited access venues). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | One 5-year renewal term |
| Renewal Fee | $6,000 |
| Renewal Conditions | Franchisee must be in good standing, provide written notice 9-12 months prior to expiration, agree to the then-current Franchise Agreement terms, make required upgrades to the Center, secure a sufficiently long lease term, sign a general release, attend training, and pay the renewal fee. |
| Transfer Fee | $6,000 |
| Transfer Conditions | Transferee must attend and successfully complete training, execute the then-current Franchise Agreement and collateral agreements, refurbish the Center to current specifications, provide required information, release the franchisor of all claims, provide guarantees and share restriction agreements (if applicable), have a satisfactory credit rating, moral character, reputation, and business qualifications, and meet all current requirements of new franchisees. The franchisor has a 45-day right of first refusal. |
| Termination for Cause | Automatic termination for events such as bankruptcy, abandonment, unauthorized transfers, criminal convictions, material misrepresentations, false records, or operating under unapproved trademarks. For other defaults (e.g., non-compliance, non-payment, failure to open), the franchisee typically has 15 days to cure after written notice, unless it's a repeated default. |
| Non-Compete Period | During the term of the franchise and for 2 years after termination or expiration |
| Non-Compete Details | During the term, the franchisee and its owners cannot own, manage, be employed by, advise, or have any interest in a Competitive Business (defined as deriving 25% or more of gross revenues from K-12 education instruction). Post-term, for 2 years, they cannot engage in a Competitive Business within a 20-mile radius of any Resource Room outlet. Managerial staff are also subject to similar non-competition covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or at least one owner if a corporation/partnership) must personally supervise day-to-day operations and devote full attention to the management of the Center. For multiple Centers, an approved Operations Manager can be delegated, who must have K-12 teaching experience within the last five years and complete initial training. All personnel must maintain professional standards and wear approved uniforms. Franchisee is solely responsible for hiring, training, compensation, and compliance with employment laws. |
| Required Suppliers | Franchisee must purchase all goods, services, merchandise, accessories, supplies, computer hardware and software, and equipment from approved or designated vendors, which may include the franchisor or its affiliates. Specific required items include the approved POS system (Square Space), Chromebooks, Desktops/Laptops, printers, high-speed internet, Wi-Fi, supplemental educational curriculum materials, SAT/ACT tutoring materials, general software, and the Zoom cloud-based phone system. The franchisor or its affiliate is the exclusive supplier of any proprietary curriculum and other testing materials. Franchisee must also use an approved credit card processing service. |
| Supply Restrictions | Franchisee must use only approved/designated suppliers and cannot use unapproved items. The franchisor reserves the right to modify standards and specifications for all goods and services, and to revoke approval for any supplier, good, or service at any time. Franchisee must comply with any changes within 30 days' notice. |
| Franchisor Revenue from Suppliers | Neither the franchisor nor its affiliates derived any revenue from franchise purchases or leases of required goods or services in the last fiscal year. However, they reserve the right to receive revenue, rebates, commissions, discounts, royalties, or other benefits from required purchases or leases in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any of its affiliates offer direct or indirect financing. Neither the franchisor nor any of its affiliates will guarantee your lease, note, or other obligations. |
The Resource Room Franchise Earnings — Item 19
Revenue Range
$236K – $264K
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
The Resource Room Litigation & Risk Flags
Clean Litigation RecordThe Resource Room has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Resource Room System Growth
Total Units
2
Franchised
0
Company-Owned
2
The Resource Room currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
| 2023 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
Franchisor Financials (Item 21)
Total Assets
$10K
Audited by Metwally CPA PLLC for year ending December 31.
The Resource Room Franchise — FAQ
The total investment to open a The Resource Room franchise ranges from $94,500 to $218,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Resource Room charges a royalty fee of 0 – 6 months: 10% of Gross Revenues. 7 – 12 months: Greater of $2,000 or 10% of Gross Revenues. 13th month and thereafter: Greater of $2,500 per month or 10% of monthly Gross Revenues of gross sales, plus a 1% of monthly Gross Revenues (can increase to 2%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Resource Room 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 The Resource Room to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Resource Room franchise owners report . This is based on a sample of 2 units. Past performance does not guarantee future results.
The Resource Room has been franchising since 2024. The FDD shows an investment range of $94,500-$218,500, a 0 – 6 months: 10% of Gross Revenues. 7 – 12 months: Greater of $2,000 or 10% of Gross Revenues. 13th month and thereafter: Greater of $2,500 per month or 10% of monthly Gross Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $94,500 to $218,500 depending on location size and market. A minimum of $15,000 in liquid capital is required. 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 The Resource Room and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Resource Room or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com