WorldKids School
WorldKids School offers language immersion classes for children aged 2 months to 12 years in Spanish and another language, supporting local communities through education. Known for early childhood language learning, it operates in the educational franchise sector.
WorldKids School franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a franchised business ranges from $378,385 to $3,826,265, depending on the size of the outlet. This includes $120,000 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $80,000. This fee is fully earned upon signing the franchise agreement and is non-refundable [p.12].
What are the ongoing royalty and advertising fees?
The franchisee must pay a National Advertising and Development Fund Fee of 2% of their Gross Revenues from the prior month, which can be used for various types of advertising [p.28, p.69]. Additionally, there is a mandatory minimum payment regardless of sales levels, though specific details about this fee are not provided in these excerpts [p.5].
How long is the initial franchise agreement, and can I renew it?
The term length of the initial franchise agreement isn't specified in the excerpts. Additionally, the ability to renew the franchise is subject to any conditions applicable to renewal rights [p.84], but the exact duration or terms for renewal are not detailed here.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, selling or transferring your franchise requires providing a written offer to the franchisor first [p.85]. However, if you are transferring to a family member, this requirement is waived [p.85]. Additionally, any sale must be of approved assets and cannot include other properties or rights without the franchisor's consent [p.85]. The franchisor can refuse transfer for good cause, such as failure to meet qualifications or being a competitor [p.6(g)]. Changes in the business model by the franchisor may also impact your ability to sell or transfer the franchise [p.4].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including immediate termination for insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, failure to pay monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety. Additionally, the franchisor can provide written notice and a 60-day opportunity to cure for certain breaches [p.154]. This isn't specified in the excerpts for all possible grounds, but it covers the main ones provided [p.170, p.154, p.156, p.6, p.179].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you will receive a protected territory, meaning that within this geographic area, the franchisor will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks. The size of the protected territory is typically based on an area density, demographics, and a population that is usually 200,000 or a 5-mile radius, whichever is greater. [p.32, p.33, p.60]
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program before operations commence [p.30], covering areas as detailed in a provided table. This includes operational guidance, on-site or remote opening support, and onboarding materials [p.11]. For replacements, additional training costs $750 per person per day, plus travel expenses [p.30]. Ongoing, the franchised business must be supervised by you as Owner/Operator or an approved manager who has completed their training program [p.30]. If initial trainees fail to complete the program satisfactorily, the franchise agreement may be terminated [p.31].
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 may provide financial performance information if there is a reasonable basis for it, but they do not make any financial performance representations other than providing actual records of an existing outlet being purchased. This information must be independently verified as it does not reflect all costs and expenses [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all the services and products specified by the franchisor. You may not sell any unauthorized services or products and must discontinue those approved by the franchisor if they are disapproved. Additionally, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].