New Horizons franchisee candidates should have a passion for delivering high quality English learning and helping local area businesses develop their people. However, New Horizons franchisee candidates should also have the financial stability to get the business off the ground and ensure that the learning center will be able to run despite potential obstacles. Franchisees’ initial investments may vary widely based on the territory size and location, the size of the first learning center, and the local market economics.

Investment Profile

Minimum Liquidity Amounts

Franchisee candidates must have a minimum of $250,000 USD in net worth in order to be considered. Franchisees must generally have at least $150,000 USD in liquid assets as well. Capital requirements for opening multiple centers may surpass several times these amounts.

Initial Franchise Fees

Initial franchise fees per training center are $40,000 USD. This fee is due in a lump sum amount at the time that the Unit Franchise Agreement is signed. Initial franchise fees are non-refundable. Franchise terms are 10 years. Unit terms may be renewed for two five year terms.

Up Front Expenses

In addition to franchise fees, there are many expenses that franchisees must pay for in order to open a New Horizons learning center. Rent, real estate fees, security deposits, and taxes on the property where the center will be opened may need to be paid to a landlord or real estate company before setting up the center. Renovations may also need to be made to optimize the center. Exterior signs will need to be purchased from local vendors. Furnishings, equipment, hardware, software, inventory, and supplies will all need to be purchased from local vendors before a franchise center can be opened. Business insurance must also be acquired.

Training Expenses

Before opening a New Horizons learning center, Owners and/or designated General Managers must attend initial franchise training. It is recommended that franchisees and any key managers for the new center also attend this training. All living expenses must be paid to attend the courses at the specified location. Living expenses may include airfare, hotel costs, travel expenses, and daily meal expenses.

Ongoing Operational Costs

Once the business becomes operational, there will be ongoing costs like rent, salaries, electricity, taxes, marketing costs, office supplies, etc. These must be paid accordingly each month as in any business. As well, there are certain royalties and fees paid to New Horizons as part of the operational costs:

  • Royalty: 4% of gross revenue

Intellectual Property and Software Fees

New Horizons, software vendors and courseware vendors may require both initial payments and monthly fees for using software and courseware for training. These fees will be discussed before initial agreements are made. As new technology and software is introduced, fees may change, so franchisees should be prepared for periodic fluctuations in monthly expenses.

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