Club Z! In-Home Tutoring

The technology fee of $75/month is significantly below category norms. What services and tools are included in this fee, and how does it compare to competitors?

The franchise fee of $27,250 is substantially lower than the typical $40,000-$55,000 range for this category. What is included in the startup costs to reach profitability?

System units have declined from 368 to 328 over the past 3 years. Can you provide detailed reasons for these 40 closures and what factors contributed to the accelerating closure rate (30 to 38 units annually)?

The 1-year turnover rate of 11.0% is more than double the typical 5.53% maximum. What is your strategy to improve unit retention?

Transfer rates have increased significantly from 9 units in 2022 to 23 in 2024. Are franchisees voluntarily selling their units due to profitability concerns, territory saturation, or other factors?

The 7-year initial term and 7-year total potential term are below category standards. Why does this franchise offer shorter terms, and what happens if a franchisee wants to continue beyond 7 years?

Renewal conditions count is 3 versus a typical 6-9. What are the specific conditions required to renew, and how strictly are they enforced?

The termination rate of 1.4% is above the typical 0.83% maximum. What are the primary reasons for franchisor-initiated terminations, and are there early warning systems to help franchisees avoid this?

Can you explain the non-renewal rate of 2.3% and provide examples of recent franchisees who chose not to renew and their reasons?

The System Health score of 31 is significantly below the typical 50-75 range. What specific metrics contributed to this low score, and what improvements are planned?

Support & Training score of 72 is below the typical 78.25-97.75 range. What ongoing training and support programs are available to franchisees throughout their tenure?

Territory is marked as exclusive, but given the -5.48% annual growth and declining units, how does the franchisor handle territory adjustments or consolidation?

Item 19 financial data is available. Can you provide the median and average gross sales figures for operating units, unit profitability timelines, and break-even analysis?

The transfer fee of $2,000 is substantially below typical fees of $7,400-$20,000. Are there additional costs or franchisor approval requirements when transferring a franchise?

What is the renewal fee structure, and are there other fees that increase upon renewal beyond the $250 renewal fee mentioned?

Given that the franchise operates on an exclusive territory model, can you provide data on territory size, student capacity per territory, and saturation analysis?

The non-compete clause specifies 2 years with no mileage restriction. How is this enforced, and are there geographic limitations to where departing franchisees can operate?

Can you provide the average time to profitability for new franchisees and the percentage of units that achieved positive cash flow within the first 3 years?

What percentage of current franchisees are operating at or above the median sales figures, and what support exists for underperforming units?

Are there any pending litigation cases, regulatory investigations, or material disputes with franchisees that might not yet appear in formal filings?