Marigold Academy
Marigold Academy offers childcare and early childhood learning programs for children aged 6 weeks to 13 years. Known for quality education and care, it operates in the competitive early childhood development sector.
Marigold Academy franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to open one Marigold Academy Center ranges from $956,900 to $1,095,100 under a franchise agreement. This includes $90,000 that must be paid to the franchisor or its affiliates and does not include real estate acquisition and build out costs [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 and is fully earned upon payment [p.11]. This fee applies unless there are specific discounts for veterans, additional territories, or multi-territory arrangements [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of weekly Gross Sales, which reduces to 4% during the first six months after the Actual Business Commencement Date [p.110]. Additionally, there is a requirement to contribute 1% of weekly Gross Sales to the Brand Development Fund for various marketing and development purposes [p.35]. This isn't specified in the excerpts regarding advertising fees directly, but it's noted that the company expenses costs for advertising as they are incurred [p.81].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in detail regarding its length. However, you have the option to renew the franchise for one additional 10-year term under certain conditions [p.137]. This renewal option is not available if the Franchised Business was previously operated or developed pursuant to a prior Franchise Agreement with the franchisor or its predecessors [p.137].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but the franchisor must approve any such transfer for good cause [p.222]. The approval indicates only that the transferee meets the criteria established by the franchisor at the time of transfer, without warranting the success or profitability of the business [p.135].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.225]. Additionally, the franchisor may terminate if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so [p.221, p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD mentions net worth in relation to the franchisor's financial statements but does not detail specific financial requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.38]. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them within your designated territory.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training Program that includes both classroom and on-the-job instruction, which may be conducted remotely. Following this, Franchisee is responsible for ongoing training of employees at their own expense, ensuring it conforms to the franchisor's standards. Additionally, the franchisor may offer supplemental training upon approval, though this comes with a fee [p.107, p.108].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Marigold Academy LLC, does not make any financial performance representations other than the ones specified in the FDD. They do not authorize their employees or representatives to make such representations either orally or in writing [p.54]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the Approved Services and Products, and you must exclusively purchase all System Supplies from the franchisor or its designated suppliers [p.117]. This includes technology platforms, uniforms, equipment, merchandise, inventory, and other supplies [p.26] and [p.9].