Creative Tutors
Creative Tutors firmly believes that children are the future and that through education every child can discover their potential for unique talents and boundless opportunities. Creative Tutors’ mission is to help unlock this potential and to give children the tools they need to succeed in the classroom by providing individualized attention in a customized approach that builds a strong foundation for learning, growth and self-esteem. Creative Tutors offers children a team of highly trained, degreed educators who carefully evaluate each child’s individual learning style and develop a personalized learning plan customized for the sole purpose of helping every child succeed and learn. Creative Tutors has also created Timmy’s Tutor, a tutoring comic, which helps connect social networks and build interest in education and education reform. With Creative Tutors, children can reach their potential and develop a love for learning that will last a lifetime.
Creative Tutors franchisees operate a home-based educational tutoring business serving students from grades K-12. Creative Tutors is part of a rapidly growing, multi-billion dollar market that offers great potential for expansion and financial success. Owning a Creative Tutors franchise can be both personally and financially rewarding for franchisees seeking a flexible opportunity that offers independence and the chance to positively influence the lives of children.
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Operating Units |
12/31/2007 |
12/31/2008 |
12/31/2009 |
|---|
| | Franchised | 9 | 10 | 11 |
| | % Change | -- | 11.11% | 10.0% |
| | Company-Owned | 0 | 1 | 1 |
| | % Change | -- | N/A | 0.0% |
| | Total | 9 | 11 | 12 |
| | % Change | -- | 22.2% | 9.09% |
| | Franchised as % of Total | 100.00% | 90.91% | 91.67% |
Investment Required
The fee for a Creative Tutors franchise is $25,000.
Creative Tutors provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
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Item | Established Low Range | Established High Range |
| | Franchise Fee | $25,000 | $25,000 |
| | Real Estate and Improvements | $50 | $18,000 |
| | Rent (3 months) | $0 | $3,000 |
| | Training Expenses | $1,000 | $3,000 |
| | Grand Opening Expenses | $1,500 | $1,500 |
| | Computer Equipment and Software | $1,000 | $5,000 |
| | Hosting Fee (1 year) | $1,800 | $1,800 |
| | Furniture and Equipment | $0 | $1,000 |
| | Insurance | $350 | $1,000 |
| | Licenses and Permits | $25 | $500 |
| | Legal and Accounting | $1,000 | $3,000 |
| | Utility Deposits | $0 | $300 |
| | Miscellaneous Opening Costs | $500 | $1,000 |
| | Minimum Technology Fee | $75 | $75 |
| | Minimum Royalty Fee | $450 | $450 |
| | Minimum Bank Balance | $5,000 | $5,000 |
| | Internet Lead Generation | $1,500 | $1,500 |
| | Owner’s Draw (3 months) | $3,000 | $6,000 |
| | Blog Set-Up Fee | $500 | $500 |
| | Total Investment | $42,750 | $77,625 |
On-going Expenses
Creative Tutors franchisees pay monthly royalty fees equal to the greater of 5% of gross revenues or $150; a monthly technology fee equal to the greater of 2.5% of gross revenues or $25; and a hosting fee equal to $150 per month. Franchisees also contribute 2% of monthly gross revenues to local advertising, 1% of monthly gross revenues to Creative Tutors’ National Marketing Fund, and 1% of monthly gross revenues to Creative Tutors’ advertising cooperative.
What You Get–Training and Support
Creative Tutors provides franchisees a comprehensive three-tiered training program prior to opening a new franchise. The first portion of the start-up training program consists of a 16-hour workshop in sales, marketing and administration led by Creative Tutors’ president, Jan Van Blarcum in Plano, TX. Part Two of the training takes eight hours to cover e-mail marketing, social networking, blogging, networking and Creative Tutors’ online training website. The final stage of the initial training takes place in Colorado Springs, CO; the 16-hour workshop trains franchisees on Creative Tutors’ SageFire (back office) and KeepMore (accounting) systems.
Once a franchisee has established a new business, Creative Tutors continues to provide training and support. Franchisees are privy to on-site assistance upon request, and Creative Tutors offers a number of periodic, tuition free management workshops and additional trainings. Creative Tutors assists franchisees in development and preparation of sales and promotional campaigns as well as in administration of national and regional marketing funds. Furthermore, Creative Tutors occasionally analyzes the franchise’s sales program, promotional efforts, financial status and other aspects of the business based on information provided by the franchisee. This information is then used to make a number of management suggestions to the franchisee, so that franchisees continually benefit from their on-going franchise relationship with Creative Tutors.
Territory
Creative Tutors grants exclusive territories based on natural boundaries and defined areas such as school districts.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2010 FDD. Upon receipt of the 2011 FDDs, we will provide new and updated write-ups that will reflect more current information. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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