CLUB Z! TUTORING Franchise: A Great Business to Own?
CLUB Z! franchise owners provide affordable tutoring services at students’ homes, and is the least expensive tutoring franchise. Is the CLUB Z! franchise a great business to own? What should those considering this investment know about CLUB Z! and its franchise opportunity? See what others are saying and share your opinions below.
(UnhappyFranchisee.Com) CLUB Z! franchise owners provide affordable tutoring services at students’ homes.
According to CLUB Z! franchise marketing:
Our owners don’t tutor or teach. They manage a staff of tutors that provide one-on-one instruction for students in the comfort and convenience of the student’s home at an extremely competitive rate. If you have a desire to start a business of your own, follow a proven plan and want to team up with industry leaders, then Club Z! could be for you.
Since they don’t tutor or teach, educational experience is not necessary for CLUB Z! franchise owners.
According to the 2015 CLUB Z! Franchise Disclosure Document (FDD), “The total investment necessary to begin operation of a CLUB Z! franchised business is from $32,600 to $56,550. This includes $19,750 to $39,750 that must be paid to franchisor or its affiliates.”
Is a CLUB Z! franchise a great business to own? Are CLUB Z! franchisees successful… and happy? What are the potential pros and cons of owning a CLUB Z! franchise?
We invite those familiar with the CLUB Z! franchise program (franchisees, instructors, franchise or corporate employees, parents, educators) to share their opinions – positive and negative – with a comment below.
Anonymous comments are welcome; however, please use a valid email address (won’t be publicly visible).
CLUB Z! Learning Franchise Advantages – Opinions Invited
What benefits can those investing in a CLUB Z! franchise expect? Here’s what the company claims.
Low investment. Club Z! states:
We have designed the cost of a Club Z! franchise to be among the most reasonable in the tutoring industry. Our franchise package is currently $27,250. An additional $10,000 is needed for start-up expenses and advertising.
Home-Based/Low overhead. Club Z! states:
Work out of your home! By eliminating the high overhead associated with a storefront or learning center, Club Z! owners can focus their resources on advertising, marketing and management.
Qualified tutors are supplied. Club Z! states:
We furnish qualified tutors – We provide franchisees with pre-screened tutors; all with certifications and/or degrees with 2+ years of proven tutoring experience.
Call Center. Club Z! states:
Our call center can answer all incoming calls for our franchise owners during business hours. This one-of-a-kind service “sells” your potential clients on using our service, and even schedules your enrollment meetings using a web-based calendar.
Do you know of other benefits of owning a Club Z! franchise? Share a comment below.
Club Z! Franchise Disadvantages – And Red Flags
Do you know of potential disadvantages of the Club Z! franchise program? Please share below.
It appears that Club Z! has been through some rough times – and may have more hard times ahead.
Item 20 of the 2015 Club Z! Learning Franchise Disclosure Document (FDD) reveals potential red flags regarding Club Z! closings and franchisee turnover.
In recent years,
In the years 2012, 2013 and 2014, there were a total of 502 franchise agreements. Nearly 1/3 of the franchises were terminated, taken back by the franchisor, or left the system by other means.
| Club Z! Franchise Turnover |
Locations
2012 |
Locations
2013 |
Locations
2014 |
Total
Agreements |
Closed or
Transferred |
Turnover
Rate |
|
| 380 | 385 | 388 | 547 | 168 | 30.71% | ||
| Centers Terminated | 4 | ||||||
| Non-renewals | 22 | ||||||
| Reacquired by franchisor | 100 | ||||||
| Ceased Operations – other reasons | 14 | ||||||
| Transferred to new owners* | 28 |
* In some cases, a transfer could mean a franchise was sold at a profit, but it often means that an owner exited the system at a loss.
What are the disadvantages of the Club Z! franchise?
Why does it appear that a high percentage of Club Z! franchisees exit the system before completing the term of their franchise agreements?
Tutoring Franchises Average a High 25.52% Turnover Rate
Unfortunately, it appears that the entire tutoring services and supplemental education segment of the franchise industry is suffering from high franchisee turnover.
The ten largest franchises in this segment average 25.52% turnover, with several (Tutor Doctor, Sylvan, & Club Z) exceeding 30%.
| Tutoring Franchise
Turnover Rates* |
Turnover
Rate 2012-2015 |
Closed or
Transferred 2012-2014 |
Turnover
Rate 2012-2015 |
| Kumon | 20.52% | Eye Level | 22.6% |
| Sylvan | 31.17% | Tutor Doctor | 31.8% |
| Club Z | 30.71% | LearningRx | 26.95% |
| Mathnasium | 17% | JEI Learning Centers | 20.23% |
| Huntington | 28.9% | The Tutoring Center | 25.33% |
Are tutoring franchises – in general – not thriving in today’s marketplace?
Is the tutoring market overbuilt and saturated with tutoring franchises?
Should prospective franchisees stay away from education franchises in general?
Share your opinion below. Company responses, clarifications and corrections are invited and encouraged.
Data Sources for Club Z! and other tutoring franchises are the 2015 Franchise Disclosure Documents, or FDDS, of the respective companies.
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HUNTINGTON Franchise: Is it a Great Business to Own?
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FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH CLUB Z! TUTORING AND THE CLUB Z! FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
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I can’t speak for the other franchisors, but the Club Z! franchise system is currently experiencing tremendous growth from its private tutoring business. From 2007 to 2013, approximately 35% of all new Club Z! franchise operations were purchased specifically to provide services for the government program – No Child Left Behind. The federal government paid approved providers to tutor students. Club Z! was approved in all 50 states and new franchises were able to instantly access the funds. The territories purchased were in low income/Title 1 markets and not suited for traditional private tutoring. All franchises knew prior to purchasing these markets that they were at the mercy of the government business/funding and it could be eliminated at any time. The Club Z! Franchise owners providing this service did extremely well financially, but when the government elected to move away from NCLB in 2012, the areas would not support traditional, parent-pay business so they left our franchise system.
Thank you very much for your posting Dana.
This was very helpful as i was wondering why the high turnover rate during this time. I am wondering, are you involved in with ClubZ or have you been in the past ?