Thinking of Buying a Home Tutoring Franchise
You just visited a franchise Expo at the Franchise Show and was thrilled to learn that a home tutoring franchise does not have overhead costs, is easy to set up, and you can work at home. The expense is anywhere between 25K to 50K just to buy the name.
What the Franchiser did not tell you?
About 10 years ago it was financially productive to purchase a home tutoring franchise. Home tutoring agencies were rare. Now home tutoring agencies and franchises are a dime a dozen. Just type in home tutoring in Toronto and you will see home many organic and paid listings there are. So that means now a days competition is fierce for clientele for your home tutoring agency.
What they also did not tell you is that you are purchasing a territory which is a sub-division of a city or municipality. Since you don’t have an actual brick and mortar location in a mall or strip mall it would be difficult for people to find you on map figuratively speaking. That would require you to ditch out an extra 10K to 30K on advertising just to let people know you exist.
Even after this when clients are calling you have to make a sale and explain to them whey your are better or cheaper than the hundreds of other home tutoring agencies that they have just found. Chances are that the client has never heard of you because you are not what they see in the Media such as brick and mortar franchises such as Kumon tutoring , Sylvan tutoring, or Oxford learning tutoring companies. Once you do get a sales lead you or some sales person you hired (another expense 22K to 42K per year $$$) will go to the potential clients home and try to win the client over.
Not to mention that your fellow franchisee which is located close to your territory has advertised secretly Google advertising in your territory so now you are having territory wars.
You are now scratching your head and thinking Hmmm… I just spent over 100K and got peanuts back. So you decide you can’t spend another penny and close shop or try selling your franchise.
All that money you just spent could have been spent on a money making franchise such as Sylvan Learning, Kumon Math and Reading, or Oxford Learning franchises. All these companies are brand names and they spend millions of dollars on company branding per year. So you literally just have to open a good location and the clients will come without having to spend thousand of advertising. Most people just call the central number and ask what the nearest sylvan, kumon, or oxford learning centre.. In addition they have an attendant 24-7 to relay any sales calls to you or an automated attendant.
So do not wind up like a deer friend of mine who was in 100K debt because he made a mistake of buying a a home tutoring franchise not knowing that you literally have to waste a lot more money, and time just to get a sale!
My suggestion as a manager of a tutoring agency for over 10 years is that your best bet to make money is to buy a branded company like Sylvan learning, Kumon Math or Reading, Oxford Learning, or Spirit of Math learning centre.