What investment level is needed?
Typically our franchisee's want to own land and building since these are long term
assets and a good way to retire. Typically these assets get paid off in 15 to 25
years. Currently the total project cost in Texas is around $2.1M - $2.6M. Now-a-days
banks need 15% - 25% down payment depending on if it is SBA loan or commercial loan.
Typical cash needed is $300K - $360K. If owning land and building is not a priority
for you at this time and can postpone this requirement, then the total project cost
is $350K - $600K. Typical cash needed is $100K.
How long does it take to open my School?
If it's new construction, 1yr for land acquisition and city approvals and another
8 months for construction. If it's an existing building acquisition or renting 6
to 8 months.
What is the process to get started?
Initially talk to our sales agents, fill out franchise request for consideration,
review Franchise Disclosure Document and Franchise Agreement, visit corporate office
for day of discovery, pay $5,000 once the franchise application is approved, select
site, sign Franchise agreement. We will guide you through all of the process and
let you know of the steps when they are due.
How do I know if I will qualify as a Franchisee?
Based on the above investment level, a good credit score and experience in managing
operations of a service oriented business.
How do I know if I will qualify for a loan?
You must show enough cash flow from your existing salary and other income that covers
the business mortgage. Typically, the yearly mortgage is in the range of $150K -
$200K for a loan of $2.1M - $2.6M. The new School land and building is usually a
sufficient collateral for the bank provided it's a SBA loan. Our help with business
and our continued education helps lower the risk for the banks.
What risks do I face in this business?
Montessori education is well accepted and typically is preferred when parents can
afford it. We will offer help in terms of location research, cost controls, and
marketing. But like any other business competition and economic conditions are two
risk factors, though during bad financial times, both parents need to work or look
for work, so the impact of economic conditions is moderate.
What level of training and support do I receive?
We provide you with a Construction Manual, Pre-Opening Manual, Operations Manual
which covers all of the running and marketing issues among other things. We train
you in a running corporate Montessori school for you to see all of the issues first-hand
irrespective of your experience level. We offer significant support during the start-up
and 1st year of operations, continuous support after that including franchisee conferences
and sharing of best practices.