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Average franchise owner revenue

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Revenue and investment comparison

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Data are based on each company’s Franchise Disclosure Documents (FDD) for all franchise centers open in 2017, except for Kumon, which are for centers open at least three years, and Tutor Doctor, which are for centers open at least one year. We estimate Club Z! revenue from its financial statement as total franchisor revenue, less purchase of trademarked material and software fees, divided by the average royalty rate, then divided by the number of centers. We estimate Kumon revenue from its FDD and a 2015 survey of its centers as average center enrollment multiplied by an average monthly enrollment charge of $120, plus registration fee of $50 and materials fees of $30 for half of its enrollments. We estimate Tutor Doctor revenue as follows: Its FDD provides (a) average enrollment by quartile for centers open 12 24 months and for centers open 25+ months; and (b) average enrollment value for each group. We compute each group’s total enrollment by quartile. For each group, we multiply each quartile’s total enrollment by that group’s average enrollment value to estimate total revenue for each group’s quartile. We estimate the average center’s revenue as the sum of these revenue estimates divided by the total number of centers.