Understanding the Cost of Joining the Redwood Tree English Training Centre Franchise
Opening a franchise is an attractive option for individuals who want to start a business with a proven business model. One of the popular franchise options in the education industry is the Redwood Tree English Training Centre franchise. The franchise's unique teaching approach and diverse range of programs have made it a well-known name in the market.
If you are considering opening a Redwood Tree franchise, it's paramount to understand the costs associated with it. In this article, we will explore the different types of fees and other necessary expenses you will incur when you join the Redwood Tree English Training Centre franchise system.
Franchise Fee
One of the most significant expenses you will incur when joining the Redwood Tree English Training Centre franchise is the franchise fee. The franchise fee is a one-time payment that you will make to the franchisor when you sign the franchise agreement. The fee covers the cost of the right to use the Redwood Tree brand name, systems, and the training you will receive from the franchisor.
The Redwood Tree English Training Centre franchise fee is CNY 200,000. Once you pay the franchise fee, you will receive training, a site selection guide, and ongoing support from the franchisor. The support includes marketing, advertising, and operational support to help you launch and grow your franchise.
Royalties
As a Redwood Tree English Training Centre franchisee, you will be required to pay royalties to the franchisor. Royalties are ongoing fees that you pay as a percentage of the revenue you earn from your franchise. The amount you pay in royalties is typically between 6% to 8% of your franchise's gross sales.
The royalties help cover the cost of ongoing support, marketing, advertising, and research and development needs of the franchise. You will be required to submit the royalties monthly, and the franchisor will use the funds to cover the costs outlined above.
Other Expenses
Joining a franchise system also involves other expenses that you will need to cover separately. These expenses are typically not covered by the franchise fee or royalties, and they may vary widely depending on various factors, such as your location, your facility's size, and the type of program you plan to offer.
Some of the additional expenses you may incur when joining a Redwood Tree English Training Centre franchise include marketing and advertising expenses, lease or rent expenses, equipment costs, supplies, and staffing expenses. You will need to factor in these expenses when preparing your budget and developing your business plan.
