Frequently Asked Questions

What are the steps I will be taking to own a franchise?

Step #1: Initial inquiry
Step #2: Submit Pre-Qualification Form on Web Site
Step #3: Complete Telephone Interview
Step #4: Discovery Day (visit to our Corporate Training Facility)
Step #5: Execute Franchise Agreement

What is the current Franchise Fee?

$31,000

What is the current royalty fee?

THE TUTORING CENTER charges a Flat Rate Royalty Payment. Our franchisees will pay $500.00 per month for their 1st year and $750.00 per month years 2-5.

What is the current advertising coop fee?

$0

What is the current Fee for a second Center?

$15,000

Can I set the monthly tuition amount more or less than the typical amount listed on the website/franchise information?

YES. You are free to set the amount of tuition that you will charge with some restrictions listed in your Franchise Agreement. You should not deviate from the standard rates by more than 25%. The amounts you decide will affect the profitability of your Center. You can look at our web site to find out what typical Centers are currently charging.

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What will my rent be?

Property rentals can vary significantly among Centers, based on a number of factors such as size, location, lease term, local real estate market, and your ability to negotiate your lease terms. Any of these factors could result in different rental expense. We currently have locations with lease rates that vary between $1000 and $4500 per month. Centers with higher lease rates choose to charge their families higher tuition rates.

What type of tutors do I hire and what is the average pay?

A typical Center uses a combination of:

• Instructors (BA Degree) $10-12/hr
• Assist. Instructors (College Students) $9-10/hr
• Interns (top high school students) $7-8/hr

A new Center will begin with 2 instructors and could increase to as many as 5 or 6 at full capacity. We anticipate that each tutor costs about $500 per month in payroll.

Will I need to go out and locate vendors to purchase all my furniture, signs, equipment, and other inventory?

NO. Your opening inventory packages are listed in your Franchise Disclosure Document and detailed in your Operations Manual. Your inventory packages are delivered to you before you open your Center. We save you substantial time and expense by making arrangements with our vendors for delivery and complete installation of your furniture package.

Can I purchase some of the start-up items like furniture or equipment on my own?

NO. The integrity of our franchise system is very important to us so we have specific items that you are required to purchase to open your Center. It is important to note that since we purchase in large volume, we are able to provide your startup package at substantial savings.

Do you offer financing?

YES! We offer a substantial in-house financing package. Please contact us for more information.

Will you help me design and layout my new Center?

YES. We will provide you, at no cost, your official layout and design. We will also be ready to answer any of your questions and give you all the guidance you need as you buildout your Center. Most importantly, at our expense, our Franchise Development Team will visit your location before you open to make sure everything is in the right place and that you're ready to go.

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Will I be required to join a local, regional, or national advertising cooperative?

NO. THE TUTORING CENTER's only requirement is that you have a yellow page. THE TUTORING CENTER follows a more "Grass Roots" marketing program, where instead of spending endless amounts of money on advertising, you are taking the time to build lasting relationships in your community that will then generate referrals.

Will I have an exclusive territory to operate my Center?

YES. Your exclusive territory of 5 miles is described in your Franchise Agreement. Your exclusive territory is based on a first-come, first serve basis determined by the date you sign your Franchise Agreement.

As a Franchisee, will I determine my own working hours?

YES. Having great working hours is one of the prime benefits of ownership. The Center is open for tutoring Monday to Thursday from 3:30 pm to 7:30 pm. There is no paperwork to work on after working hours nor is there tedious work to get done during the weekends. You must supervise and manage your Center as per your Franchise Agreement but this is your business and your investment. We know from experience how important it is for the owner to be there at least part-time to support the staff, the students, and the parents. After taking the time to build up your Center, and the Center is doing well, some franchisees choose to hire a Head Instructor to help run the day-to-day operations of the Center. This ability to "step away" from the business to spend quality time with your family is an awesome benefit of owning one of our Centers.

Do I need a degree in Education to be awarded a Franchise?

NO. Although previous experience in a related field or in business, management or sales is a plus, we will train you to run your Center. Some of our best Centers are being run by owners with absolutely no experience in the field of Education. Our franchise owners come from all walks of life and have a wide range of backgrounds. In fact we encourage owners that do not have any experience in the field of education but rather who have a passionate desire to help the children of their community. If you have an entrepreneurial spirit, the desire to be successful, and the need to own your own business in a field that helps people, then THE TUTORING CENTER is a great place for you.

What kind of qualifications are you looking for?

Once you have attended our Discovery Day, we will be able to review your background in detail. In general, we are looking for someone who has a strong desire to be in business, is a good communicator, has strong ties to the community, and can dedicate his or her effort to expanding the Center and helping the children of the community. A strong financial base is also important. No experience in sales or education is necessary.

I have a specific area in mind, is it ok to open there?

Center locations are on a "first come, first serve basis" depending on when you sign your Franchise Agreement. Our Franchise Development Team will give you a call so that you can ask questions about the area you are interested in to see if it is available.

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Should I find a location and sign my lease before attending Discovery Day and signing a Franchise Agreement?

NO. You must become an actual Franchisee before negotiating on a specfic location. One of the provisions of your Franchise Agreement is that your location is approved in writing. You should never sign a lease on any property before signing your Franchise Agreement. You do not want to be legally bound to a lease before we have awarded you a franchise. There are no guarantees that you will be awarded a franchise during the "discovery process."

Can I set the monthly tuition amount more or less than the typical amount listed above?

YES. You are free to set the amount of tuition that you will charge with some restrictions listed in your Franchise Agreement. You should not deviate from the standard rates by more than 25%. The amounts you decide will affect the profitability of your Center. You can look at our web site to find out what typical Centers are currently charging.

What expenses can I expect to pay for my advertising?

You will probably want to spend more than the regular monthly amount for your grand opening advertising. Busy Centers rely on a combination of walk-in traffic, print advertising, and "grass roots" marketing. Many students will come to your Center from family referrals, professional referrals, walk-ins, as well as school referrals. How many referrals your Center receives each month will depend on the energy and time you put into your Center's marketing plan, which is included with your Operations Manual. A typical coupon ad in your local coupon book will cost about $300 per month, a yellow page ad about $200 to $300 per month.

How well does the Training Program prepare me to run the business?

When you are investigating any franchise, one of the most important questions to ask is, "How well does the training program prepare me to run the business?"

The scope of our training program is extensive and covers all areas from opening your Center to running it efficiently. We have a solid training program that includes all relevant factors, such as:

• Everything you need to know about delivering our tutoring services and running your front office
• How you find your location
• How you negotiate your lease
• How you complete the buildout of your Center
• How you hire and manage employees
• How you conduct your marketing to produce customers
• How you keep your books and records for the business
• Where you get the supplies and inventory you need for the business
• Where you get the furniture and equipment you need for the business

As a final note, we will confirm the documentation level of our franchise training program when you attend Discovery Day. We will show you that everything you need to know is written down in easy access manuals and other training support sources.

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For further assistance please contact our Director of Sales & Marketing:

Kurt Miller
kurtmiller@tutoringcenter.com

Office: 949-586-9543
Mobile: 562-310-3632