A typical franchise arrangement confers certain rights and responsibilities on both the Franchisor and Franchisee. The Franchisor agrees to provide certain rights, property, knowledge and services in exchange for certain “consideration” from the Franchisee. The rights and responsibilities of both parties in the KIDS FIRST® franchise arrangement are more fully spelled out in the Franchise Agreement and Disclosure Documents, but are reviewed for you below:
KIDS FIRST® (the Franchisor) agrees to provide:
- Rights to the use of the trademarked name KIDS FIRST® Swim Schools and the copyrighted KIDS FIRST®/Kick First Learn to Swim System®.
- You will be granted a specific, exclusive territory defined as a circle formed at a 5 mile radius from the center of your franchise location.
- In addition, you will be given the first right of refusal option for any proposed school within a ten mile radius from the center of your franchise location.
- Assistance in locating a desirable site for your business and in negotiating a favorable long term lease.
- Help in securing financial assistance to start your company from your landlord and our bank, if qualified.
- Help in designing and building your very own specialty pool through the KIDS FIRST® Construction Company.
- Direction in how to market your new business and forge strategic relationships that will help your business grow.
- A prominent position on our corporate website.
- Training for you and your staff so that you can effectively deliver the copyrighted KIDS FIRST®/Kick First Learn to Swim System®.
- Copies of our Startup Guide, Operations Manual, Training Manual and Financial Planning Guide.
- Access to all our KIDS FIRST® forms and documents through our web based “Forms Library”.
- Direct access to our suppliers where you will receive the same purchasing power that KIDS FIRST® enjoys by buying in quantity.
- Access to our insurance carriers where you will enjoy the same broad coverage and low premiums that we have earned over time.
- Two weeks of basic training; regular visits from our Franchise Team and continued access to our Senior Management Team as your company changes and grows.
- Finally, you will enjoy membership in our Franchisee Association, where the development of relationships and sharing of ideas will make all of us stronger.
You (the Franchisee) agree to provide:
- An initial franchise fee of $35,000 to defer our costs for helping to get your business up and running.
- Royalties equal to 6% of your weekly gross revenues.
- A commitment to be actively involved in the business. We are looking for partners, not simply investors.
Should you elect to investigate a KIDS FIRST® Franchise further, you should understand that your initial investment will be approximately $500,000, which provides for the construction of your very own specialty pool, the franchise fee, security deposits, signage, furniture and equipment, initial advertising costs and working capital.
We are often able to negotiate contributions from our landlords in the range of $100,000 to $150,000 as a tenant improvement allowance. We are also often able to secure SBA or other bank loans through our lenders in the amount of $200,000 (depending upon collateral). Therefore, a serious franchisee should have $150,000 to $200,000 in cash available. If this describes you, please read on.