Scholars Education Centre – Frequently Asked Franchising Questions
To help guide you through the franchising process, we’ve compiled the ‘Frequently Asked Franchising Questions’ list. Franchising can be an overwhelming process: Where do you start? What questions do you ask? How does the process work? What is the timeline?
The ‘Frequently Asked Franchising Questions’ list consists of the most commonly asked questions from prospective franchisees with a detailed answer to each question. We think the best way to start is for us to answer common questions and concerns from an open and transparent list!
Please select a question below and the site will navigate you down to the corresponding answer.
- Do I need to be a teacher to become a franchisee? What type of background do I need?
- How big is the tutoring industry?
- What is the franchising process for Scholars Education Centre?
- What is the ideal type of franchisee that Scholars Education Centre looks for?
- What are the operating hours of the business?
- Do I need to be a hands-on owner/operator?
- What does a “day in the life of a franchisee” look like?
- How long does it take to open a Scholars Education Centre?
- How much does it cost to open a Scholars Education Centre?
- What type of support is provided for franchisees?
- What are the ongoing royalty and national advertising fund fees (NAF)?
- Does Scholars Education Centre qualify for financing programs?
- How big of a space do I need for a Scholars Education Centre?
- How do I find the “right” location for my Centre?
- Do I get protected territory for my location?
- Can I talk with existing franchisees?
- How will I find staff and teachers for the location?
- Do I have the ability to open up more than one location?
- Does the Franchisor hold annual conferences?
- Does the Franchisor have a Franchise Action Committee (FAC) to voice the needs of franchisees?
- How are brand standards maintained across locations?
Do I need to be a teacher to become a franchisee? What type of background do I need?
- Franchisees do not need to be teachers to open a location. Although it may be an asset to have a background specific to education or teaching, a very small percentage of our franchisees are teachers or have any background as educators. Our franchisees have a passion for education, continuous learning, and working with kids. Franchisees rely on our training at the Head Office to provide them with the necessary information on the school system, curriculum, terminology, etc., in the community where they will operate, so that they will be prepared to work with families as soon as they launch their franchises.
How big is the tutoring industry?
- A report released in September 2016 by Global Industry Analysts estimated that the tutoring industry in Canada will experience a growth rate of 6.7% per year over the next six years. Projected annual revenue figures in millions of U.S. dollars for the years 2015 through 2022 from the Global Industry Analysts Report are below:
- 2015: 1,682.8
- 2016: 1,795.9
- 2017: 1,926.3
- 2018: 2,074.0
- 2019: 2,220.0
- 2020: 2,363.0
- 2021: 2,509.7
- 2022: 2,657.0
- In summary, the tutoring industry in Canada is a multi-billion-dollar industry that is expanding at an excellent year-over-year growth rate.
What is the franchising process for Scholars Education Centre?
- The process is structured to provide prospective franchisees with a transparent and detailed overview of the business model:
- Step 1 – Let’s Get Started: Submit a ‘Request Information Form’ to the Head Office! We will be in touch soon to tell you more about franchise opportunities and to answer any preliminary questions you may have.
- Step 2 – Meeting and Discovery: It is essential for us to review your goals as a prospective franchisee, and for you to evaluate our brand. Is our brand the right fit for you? We often schedule our first meeting with a prospective franchisee at an existing location to show you our brand standards and to provide you with an overview of our franchise system. It also lets you talk with an existing franchisee.
- Step 3 – Application Process: If you decide to move forward, we will request a current resume, and you will fill out a Confidential Franchise Application to that we can ensure that you operationally and financially qualify to be a prospective franchisee.
- Step 4 – Site Selection and Approval: Site selection for your Centre can be one of the most challenging aspects of starting a business. Location is one cornerstone that’s often linked to the success and failure of a business. Finding a location that suits your needs, meets our expectations, and satisfies demographic requirements can be overwhelming and stressful. However, our Head Office team works with you to find a location in your community that satisfies all of the necessary criteria. Leveraging our experience and innovation during the site selection and lease-negotiation processes makes the process exciting and enjoyable.
- Step 5 – Meeting Our Existing Franchisees: Meeting our existing franchisees to speak with them regarding their experience with our head office team is essential in the franchising process. We encourage prospective franchisees to speak with as many franchisees as possible during the diligence process to obtain real-time perspective on running a location and what to expect as a franchisee in our system.
- Step 6: Opening and Training: Each franchisee is provided with a comprehensive opening list to ensure that the initial setup and launch are smooth and structured. You will attend one week of Head Office training and two weeks of on-site training at your location to provide you with the support you need to get started. After your training and the launch of your Centre, we provide a detailed six-month ongoing training plan to provide support for new franchisees. After the six-month post-training period, on-demand support is provided in the areas of sales, operations, marketing, and IT.
What is the ideal type of franchisee that Scholars Education Centre looks for?
- The ideal Scholars Education Centre franchisee is passionate about education, continuous learning, and working with kids. Moreover, our ideal franchisee is dedicated to providing industry-leading customer service to clients.
What are the operating hours of the business?
- Typically, locations are open Monday through Thursday, 3 p.m. to 8 p.m.; Saturday from 9 a.m. to 1 p.m.; and closed Friday and Sunday. There is some flexibility in our operating hours, but these are the most common operating hours at our locations.
Do I need to be a hands-on owner/operator?
- We recommend that new franchisees complete in-house training and operate the location personally for a minimum of three to six months. Transitioning out of being a hands-on owner after the initial opening period and bringing in a centre manager can be done successfully, and it’s a transition that our Head Office team will support in terms of finding the right candidate, training the manager, and providing your new manager with day-to-day support from the Head Office team in the areas of sales, marketing, and operations.
What does a “day in the life of a franchisee” look like?
- A typical day may include taking new-inquiry phone calls and answering web inquiries; completing new-student intake and enrollment; completing new-student benchmark assessments; completing parent/guardian conferences, which involve providing parents/guardians with formal updates on their children’s progress in the program; scheduling staff; reaching out to teachers in the local school system concerning kids enrolled in our program to work in conjunction with school curricula; and having fun working with your team of teachers, students, and parents!
How long does it take to open a Scholars Education Centre?
- Typically, it takes three to nine months, depending on a variety of factors, including, but not limited to: finding a location, completing the various stages of our internal franchise process, and legal due diligence.
How much does it cost to open a Scholars Education Centre?
- Scholars Education Centre provides turnkey franchise units. Turnkey means we provide all necessary equipment, fixtures, and location setup for you to launch a franchise. The average turnkey cost of opening a Scholars Education Centre is between $85,000 and $125,000. The cost includes our franchise fee, equipment, teaching curriculum, fixtures, supplies, marketing materials, IT software and hardware setup, signage, and construction. The turnkey total does not include additional working capital that may be required to fund the day-to-day operations of the business when you initially open. Our Head Office team takes a very transparent approach to opening a new location, as well as disclosing the costs that a prospective franchisee can expect to encounter. In some cases, the cost to open has been less than the previously quoted $85,000 or more than the quoted $125,000. So, Scholars provides a site-specific disclosure document before you sign a franchise agreement. A site-specific disclosure document will contain a lease or offer to lease on the location we have agreed to, the estimated cost of renovations based on having toured the space with a contractor, and the general costs for turnkey setup (exterior signage, a lease deposit to the landlord, the amount of furniture required based on the size of the space, etc.). By providing a comprehensive list of expenses that are based on the location, franchisees can project expenses with greater accuracy. By reviewing costs specific to the proposed location, we only ask you to sign the franchise agreement when you are willing to sign the lease at the same time. We believe you should only be going into business when we have a set location, and that location should drive our disclosure document and franchise agreement. Our franchising process is focused on upfront communication and transparency.
What type of support is provided for franchisees?
- New franchisees are provided with a six-month training plan in the areas of operations, marketing, sales, IT, and business training. Our pre-opening training package actually begins 30 days before franchisees come to our training facility. To better prepare franchisees for our training and to build their confidence, our Head Office team completes various exercises and workshops with new franchisees that will prepare them to be business owners in the education industry. Our on-site training is completed over a five-day period and covers classroom-based theory and practical, hands-on experience in the areas of human resources, programming, training on our proprietary content-management system, marketing, sales, and much more. Our followup training includes on-site support at your new location in the areas of new-student intake, new-student enrollment, conferencing with parents, and general organisation. Our ongoing training for the remaining five months involves daily phone calls with Head Office team members, weekly phone calls, bi-weekly phone calls, and monthly visits. Once a franchisee is comfortable with the operations and management of the location, support is typically provided on an as-needed basis.
What are the ongoing royalty and national advertising fund fees (NAF)?
- Royalty and NAF payments are made to our Head Office on a monthly basis and are paid on gross monthly revenues. Our royalty is 10%, and our NAF is 4%. A major competitive advantage of our franchise system lies in the fact that the 10% royalty covers all material costs (beyond day-to-day printing) of the franchisee. As a result, as a franchisee, you don’t need to order materials from our Head Office on a monthly basis or purchase external materials. All material costs are included in your royalty payments.
Does Scholars Education Centre qualify for financing programs?
- Yes, our Head Office team can work closely with the financial institution of your choice to assist in providing the required documentation requested by each financial institution to secure financing. We have worked with several existing franchisees in securing financing at some of Canada’s top-tier financial institutions.
How big of a space do I need for a Scholars Education Centre?
- A typical Scholars Education Centre ranges between 1,000 and 1,500 square feet. The ideal square footage is between 1,150 and 1,250 square feet.
How do I find the “right” location for my Centre?
- Using advanced demographic software, our Head Office team provides a demographic analysis of each new location with an emphasis on the following demographic indicators: population density, total population, number of kids in a defined area, and household income. In addition to the demographics, we provide an analysis regarding schools and community centres in the area, and a competitive analysis of the proposed location. In our experience, finding the right location requires working with prospective franchisees in their local area to identify the right location, as opposed to forcing a prospective franchisee to move forward with a location strictly driven by the franchisor. A partnership approach with prospective franchisees to identify the right location is always the preferred option for our Head Office team!
Do I get protected territory for my location?
- Yes, all franchisees are provided with a protected territory that is defined by street boundaries and a specific population within those boundaries. A protected territory means the franchisor cannot open up additional locations within your territory unless you grant our team permission.
Can I talk with existing franchisees?
- Absolutely! In fact, as part of our Head Office due-diligence process, we require prospective franchisees to speak with several existing franchisees — from new franchisees to veteran franchisees.
How will I find staff and teachers for the location?
- As part of a franchisee’s initial training, our director of franchise operations will assist you with posting job ads, reviewing resumes, conducting phone and face-to-face interviews, completing reference checks, and providing training for new teachers. We provide you with a complete, turnkey solution for staffing in your location. Our teaching team drives the growth of every new location, so we want to play a very supportive and hands-on role in helping new franchisees find, hire, and train an exceptional team of teachers.
Do I have the ability to open up more than one location?
- Yes, our Head Office team will work with area developers and multi-unit franchisees. Our team tends to take a very conservative path toward growth and expansion, so we will work hand-in-hand with our franchisees to determine the best time to open additional units and undergo multi-unit franchising with an individual franchisee.
Does the Franchisor hold annual conferences?
- Yes, we host an annual Head Office conference, the goal of which is to bring franchisees together to collaborate with each other, release new branding materials and new advertising plans for the upcoming year, present system awards to top-performing franchisees, and have some fun as a franchise family!
Does the Franchisor have a Franchise Action Committee (FAC) to voice the needs of franchisees?
- Yes, Scholars Education Centre hosts an FAC committee that meets every three to four months. The FAC consists of two franchisees that are elected by the franchise system to represent the interests of all franchisees. Meetings involve the Head Office team and FAC representatives sitting down to review what is going well in the franchise system, areas required for ongoing improvement, marketing results, and future development projects. The FAC allows for transparent and ongoing communication from the entire franchise system and Head Office, and it ensures that the Head Office does not lose touch with the needs of franchisees, who are on the front lines.
How are brand standards maintained across locations?
- Maintaining brand standards is a vital component at Scholars Education Centre. Twice per year, each location undergoes a 400-point inspection called our Quality Assurance Report (QAR). The QAR covers the areas of cleanliness, marketing-brand standards, outreach completed in the community by the franchisee and his or her team, service, quality, adherence to program requirements and implementation, and a review of key performance indicators. The results provide the franchisor and the franchisee with a checklist of areas in which the Centre should make improvements. This allows the franchisor to maintain brand standards and quality across the entire franchise system.