Club Z!

The franchise fee is $27,250 for a territory up to 100,000 population or $39,750 for an expanded territory up to 200,000 — among the lowest franchise fees in the education category. No real estate, no build-out, no lease. You operate from home. Total investment of $40,975 to $57,425 is the sum of the franchise fee, training travel, initial launch advertising ($6,000 over four months at $1,500/month), computer and equipment ($550–$1,200), the Club Z! Business Package for three months ($750), and three months of working capital ($4,000–$6,000).

Ongoing fees are where Club Z! extracts its return. The royalty is tiered: 8% on your first $10,000/month in gross sales, 7% on $10,001–$20,000, and 6% above $20,000. The expanded territory pays a flat 6%. A $550/month minimum applies starting month three. The Club Z! Business Package is a mandatory $250/month (increasing to $300/month in year three) that covers the call center, appointment setting, cold calling, and live chat services — this is effectively a lead generation service baked into your ongoing fees. Add the 2% advertising fund (minimum $50/month) and $75/month technology fee, and at $12,000/month gross sales your combined ongoing payment is approximately 9–10% of revenue plus $325–$375/month in fixed fees.

Club Z! takes an unusual approach to Item 19 — disclosing student counts and hourly rates rather than gross revenue, which gives you the ingredients to calculate income without handing you a direct number.

For the 154 franchisees who worked 35+ hours per week in 2024 (out of 328 total): - Average active private students: 50, median 45 - Range: 16 to 217 students

For the 98 franchisees working 20–30 hours per week: - Average active students: 37, median 30

Client pay rates by grade level: Elementary $52/hour average, Middle School $55/hour, High School $58/hour, Test Prep $125/hour. Tutor pay rates run $24–$28/hour for standard subjects.

At 50 students each averaging 2 sessions per week at $55/hour: that's roughly $285K in annual gross billings. After the 8% royalty on the first portion and 6–7% on the rest, the advertising fund, and the Business Package fee, total fees run approximately $28K–$35K per year. Revenue minus tutor costs (say, 50% of billing) minus fees leaves owner earnings in the range of $100K–$130K for a full-time operator at the average student count — though this calculation is sensitive to your specific grade mix, session frequency, and whether you use W-2 tutors or 1099 contractors.

The Club Z! system has contracted every year since 2022: 368 units globally, then 347, then 328. In the US specifically, the 2024 data shows 19 openings and a combination of 5 terminations, 8 non-renewals, and 25 reacquisitions by the franchisor — the last figure is the largest driver of net decline. Franchisor reacquisitions typically mean the franchisor is buying back underperforming territories or strategic territory consolidations, not necessarily a sign of operator failure. But 25 reacquisitions in a single year against 19 new openings means net negative growth, and that trend has now run three years. The high transfer rate (23 transfers in 2024) suggests an active resale market, which is positive.

The system decline requires explanation before you commit. Ask the franchisor directly: why are 25 territories per year being reacquired? Are these failing franchisees, territory consolidations, or strategic acquisitions for resale at higher prices? The answer materially affects your assessment of franchise value.

The $250–$300/month Club Z! Business Package is a mandatory ongoing fee that provides lead generation and call center services — but you're paying whether or not the service generates students for you. At $3,000–$3,600/year, it's a fixed cost that hits in the first year before you've built a student base. The initial $6,000 in launch advertising (4 months at $1,500/month) is also managed and executed by the franchisor — you pay it but the franchisor controls the campaigns.

The royalty minimum of $550/month kicks in after month two regardless of your student count. In a slow ramp, you're paying $550 before you've earned $7,000 in that month. The renewal fee is a very low $250 — a genuine positive in an industry where renewals often cost thousands. Overall, the financial structure favors Club Z! in the early months when you're building volume; unit economics improve significantly once you're past the $10,000/month revenue threshold where the blended royalty drops.