Year Business Began: 2000
Franchising Since: 2005
U.S. Headquarters: Wilmington, Delaware
Country of Origin: Canada
Estimated Number of Units: 735
Franchise Description: The franchisor is Tutor Doctor Learning Solutions, Inc. The franchisor’s parent company is Ontario Inc. The franchise offered is for the operation of a business under the name “Tutor Doctor” which offers affordable tutoring services at a student’s home and online. This franchise system or platform offers an effective alternative to students and parents who prefer to receive tutoring help online and in their own home instead of traveling to a learning center. There are three types of franchises offered: (a) a local territory franchise; (b) a regional territory franchise, and (c) a national territory franchise. The franchisor also offer an “empire builder” program, which includes either one regional territory or one national territory, plus two local territories.
Training Overview: Franchisees (or their operating principal) and, if applicable, one additional management individual (if the operating principal and manager aren’t the same individual) must participate in and successfully complete, to the franchisor’s satisfaction, the initial training program. This program includes virtual training (online), eLearning and in-class training; the latter is conducted at the franchisor’s headquarters or another location that it specifies. Franchisees may enroll up to three persons (including the operating principal and manager) into the initial training program. Additionally, franchisees may ask the franchisor to provide on-site training in addition to that which the franchisor will provide to franchisees in connection with the initial training program or the opening of the franchised business. The franchisor may require that any or all of the specially-trained management personnel attend refresher courses, seminars, and other training programs periodically (both online and in-person). The term “specially-trained management personnel” means franchisees (or the operating principal), the general manager, and any other individuals who have completed all training and possess the qualifications necessary to the management and/or service roles that the franchisor requires for their positions. The franchisor conducts an annual or bi-annual conventions for its franchisees to discuss and review new business, marketing, technology and training ideas and concepts. Franchisees and their manager(s) must attend the conventions.
Territory Granted: The territory is the geographic area in which franchisees are authorized to operate their business. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. During the term of the Franchise Agreement, so long as franchisees remain in compliance with the terms of the Franchise Agreement, the franchisor will not establish or license anyone else to establish, another Tutor Doctor business at any location within the “protected territory” that is designated in the Franchise Agreement. Before signing the Franchise Agreement, franchisees must select one of the types of franchises which will define their territory. A local territory is defined by zip code boundaries and will include a population of approximately 75,000 to 100,000 people. Except for certain protections, a local territory business will be non-exclusive and other Tutor Doctor businesses will be permitted to offer services and products within the protected territory. Franchisees will have the right to offer and sell services and products to customers located only within their local protected territory. The regional protected territory is typically comprised of a state or an equivalent geographic area. As part of a regional territory business, franchisees are also granted a local territory situated within the regional territory. The regional territory will be non-exclusive, and other franchisees may be granted a regional territory that includes all or some of the regional territory franchisees are granted. The national territory is typically comprised of the entirety of the United States. As part of a national territory business, franchisees are also granted a local territory. The national territory will be non-exclusive, and other franchisees may be granted a national territory that includes all of the national territory franchisees are granted, and may sell products and services to consumers in the national territory (but if franchisees are in good standing under the terms of their Franchise Agreement, the franchisor will not award another local territory franchise for the same local territory). Under the empire builder program franchisees would be awarded a regional territory franchise and two additional local territory franchises. The parameters for these territories are as described above.
Obligations and Restrictions: The Franchise Agreement does not require franchisees to participate personally in the direct operation of the franchised business, although the franchisor encourages and recommend active participation by franchisees. If franchisees are an entity (a corporation, partnership or LLC), then they must appoint a person who will serve as the “operating principal.” The operating principal must supervise the franchised business and complete the training program. Additionally, the operating principal must have at least a 50% ownership interest in the franchisee entity, and have authority over all business decisions related to the franchised business and the power to bind the franchisee in all dealings with the franchisor. If the operating principal will not supervise the franchised business on a full-time and daily basis, franchisees must employ a full-time manager who has qualifications reasonably acceptable to the franchisor, to assume responsibility for the daily operation of the franchised business. Franchisees must operate their franchised business in compliance with the system. Franchisees must sell or offer for sale only those services and products that the franchisor has approved in writing for them to sell at their franchised business, and they must sell or offer for sale all those services and products. Franchisees must not deviate from the franchisor’s standards and specifications.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10-year term is available, if requirements are met.
Financial Assistance: The franchisor does not currently offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $54,700 | $69,700 |
| Rent Deposit, Prepaid Rent, Utility and Phone Deposits | $0 | $500 |
| Insurance Initial Payment | $1,300 | $3,000 |
| Computer and Software | $1,000 | $5,000 |
| Printing | $1,500 | $2,500 |
| Market Advertising and Promotion | $12,000 | $18,000 |
| Phone and Fax | $500 | $500 |
| Training | $3,000 | $3,000 |
| Additional Funds - 3 months | $15,000 | $30,000 |
| Professional Fees | $2,400 | $3,900 |
| Test Preparation Certification | $2,895 | $2,895 |
| ESTIMATED TOTAL | $94,295 | $138,995 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 8% of gross sales, subject to a minimum royalty fee of $500 to $3,000 per month. |
| Transfer | $10,000 charged to prospective franchisees at the time of transfer, plus any applicable broker or commission fees. |
| Initial Training | No fee paid to the franchisor for two individuals attending the training program. $2,500 per person for additional trainees. Costs and expenses of attending training. |
| Additional Training | Then current tuition rate, plus expenses. |
| Branding Fund Contribution | 2% of gross sales. |
| Local Marketing and Promotion Expenditure | Minimum expenditure of $1,000 per month ($1,500 per month for empire builder franchisees). |
| Cooperative Marketing | The franchisee’s pro rata share of any marketing conducted. |
| Renewal | $10,000 |
| Interest | 1.5% per month or the highest applicable rate, whichever is less. |
| Supplier Evaluation | Reasonable costs of evaluation. |
| Audit Fees | Cost of audit plus interest on underpayment. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys' Fees | Will vary under circumstances. |
| Liquidated Damages | Average monthly royalty fees due to the franchisor during the 12 months of operation preceding the effective date of termination, multiplied by the lesser of (a) 24 months or (b) the number of months remaining in the agreement had it not been terminated. |
| Bank and Credit Card Authorization Denial | $50 |
| Technology Fee | $150 per month. |
| Website Management Fee | $150 per month/per website. |
| Education Payment Plan | A $60 monthly fee (subject to annual revision but not to exceed $120) per month. |
The above information has been compiled from the FDD of Tutor Doctor. Year of FDD: 2022.
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