wethepeople
New member
my original post is here: https://www.reddit.com/r/smallbusiness/s/61UuJeQTm8
the terms are pasted below:
Franchise transition overview
1. Agree to terms within this document
2. Choose territory (where applicable, some teachers do not have a choice of territory due to location)
3. Agree to terms of loan (contract will be provided, basic terms of contract are notated below)
a. Loan is for $10,000
b. 0% interest
c. Must be paid within 1 year from date of signed contract
d. Payment will be made from revenue within assigned territory after wages, reimbursements, and benefits are paid by TKC to franchisee
e. The amount of wages, reimbursements, and benefits will be equal to what the franchisee was making prior to the contract
f. TKC will keep revenue overages as stated above from legacy students. Franchisee is also required to pay TKC any additional funds acquired by new students within their microsite.
g. If total repayment from revenue exceeds $1000 month, franchisee may choose to keep overages.
h. If revenue does not equal $10,000 by the end of the terms, franchisee is required to pay the balance in full.
4. Receive/review FDD
5. Must wait 14 days after receiving FDD before signing.
During this time, establish LLC, open bank account, obtain insurance, create Stripe account (requirements are detailed within the FDD).
6. Sign FDD.
7. Attend franchise training (this will be done virtually and scheduled around your established classes).
8. You are responsible for all aspects of your franchise until your loan is paid in full. This means that you are not permitted to hire any staff until the fulfillment of your loan.
9. Once loan is paid in full, you will no longer receive payments from TKC for employment and other fees will begin. These will be a royalty fee of 10% of gross sales, a brand fund fee of 2% of gross sales, and a $250 technology fee. These fees are collected by the 10 day of each month.
10. Ongoing training and support will be provided.
i researched so much i have a headache! i think i’m going to do it. i looked up establishing an LLC and it doesn’t seem hard at all, it’s just a matter of paying for it pretty much.
i could use any and all friendly advice and insight. maybe mistakes you’ve made or things you’ve wished you knew sooner or common steps that are missed through this process, etc.
thank you in advance!
the terms are pasted below:
Franchise transition overview
1. Agree to terms within this document
2. Choose territory (where applicable, some teachers do not have a choice of territory due to location)
3. Agree to terms of loan (contract will be provided, basic terms of contract are notated below)
a. Loan is for $10,000
b. 0% interest
c. Must be paid within 1 year from date of signed contract
d. Payment will be made from revenue within assigned territory after wages, reimbursements, and benefits are paid by TKC to franchisee
e. The amount of wages, reimbursements, and benefits will be equal to what the franchisee was making prior to the contract
f. TKC will keep revenue overages as stated above from legacy students. Franchisee is also required to pay TKC any additional funds acquired by new students within their microsite.
g. If total repayment from revenue exceeds $1000 month, franchisee may choose to keep overages.
h. If revenue does not equal $10,000 by the end of the terms, franchisee is required to pay the balance in full.
4. Receive/review FDD
5. Must wait 14 days after receiving FDD before signing.
During this time, establish LLC, open bank account, obtain insurance, create Stripe account (requirements are detailed within the FDD).
6. Sign FDD.
7. Attend franchise training (this will be done virtually and scheduled around your established classes).
8. You are responsible for all aspects of your franchise until your loan is paid in full. This means that you are not permitted to hire any staff until the fulfillment of your loan.
9. Once loan is paid in full, you will no longer receive payments from TKC for employment and other fees will begin. These will be a royalty fee of 10% of gross sales, a brand fund fee of 2% of gross sales, and a $250 technology fee. These fees are collected by the 10 day of each month.
10. Ongoing training and support will be provided.
i researched so much i have a headache! i think i’m going to do it. i looked up establishing an LLC and it doesn’t seem hard at all, it’s just a matter of paying for it pretty much.
i could use any and all friendly advice and insight. maybe mistakes you’ve made or things you’ve wished you knew sooner or common steps that are missed through this process, etc.
thank you in advance!