If you are looking towards opening a Chyten Educational Services Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Chyten Educational Services was founded in 1999 and they began franchising in 2007, about 13 years ago. The current CEO of the company is Neil Chyten and they have their corporate head office at 1723 Massachusetts Ave. Lexington, MA 02420, USA. Chyten Educational Services also provides franchising opportunities.
Chyten Educational Services is the premier private education provider in the nation. With Master’s degree tutors, highly effective, proprietary strategies, several published preparation manuals and a wide array of educational services, Chyten is unmatched in reputation and earnings potential. Chyten offers a boutique experience that has great appeal to parents who want the best for their children. With services ranging from college counseling and test preparation to academic tutoring and study skills, Chyten centers offer parents one-stop shopping for students of all ages.
Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Chyten Educational Services Franchise
1. Initial Investment Range: $138,900 – $261,500
2. Franchise Fee: $37,500
3. Royalty Fee: 10 percent of Gross Sales
Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third – party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two – thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Chyten Educational Services and its affiliates are also members of their respective local Cooperative and each company – owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company – owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Chyten Educational Services if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out – of – pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Chyten Educational Services if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Chyten Educational Services is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10% off franchise fee.
- Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If requirements are met, franchisees can renew for one additional term of 7 years.
- Financial Assistance: Chyten Educational Services! has relationships with third – party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
In Summary,
- Initial Investment: $138,900 – $261,500
- Net-worth Requirement: $150,000
- Liquid Cash Requirement: $75,000
- Ongoing Initial Franchise Fee: $37,500 – $37,500
- Ongoing Royalty Fee: 10%
- Ad Royalty Fee: 2 to 4%