Prepaze Academy franchise
2024 filing · July 19, 2024
Prepaze Academy at a glance
A learning center offering K-12 tutoring in all subjects, test prep and college counseling. At the end of 2023 there were 2 Prepaze Academy locations in the US, all company-owned.
The business
- Franchisor
- Prepaze Academy Franchises Inc
- The company that sells the franchises
- Franchisor based in
- Morrisville, North Carolina
What you pay
- Cost to open
- $154K–$309K
- Fee, build-out and opening working capital
- Franchise fee
- $39,000
- Paid once, when you sign
- Royalty
- 12% + minimum
- The greater of 12% of gross sales or $750 a month, paid monthly, plus 2% to the marketing fund
- Brand fund
- 2%
- 2% of gross sales, paid monthly
- Agreement length
- 5 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 2
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 2
- Change in 3 years
- 0
- Franchised locations, 2021–2023
- States
- 2
- Most in California and North Carolina
From Prepaze Academy Franchises Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Prepaze Academy among all franchises with the same figure.
| Figure | Prepaze Academy | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $231,250 | Costs less than 65% of franchises |
| Franchise feePaid once, when you sign | $39,000 | Lower than 58% of franchises |
| RoyaltyShare of sales paid to the franchisor | 12% | Higher than 98% of brands with a set rate |
| US locationsFranchised and company-owned | 2 | Fewer than 82% of franchises |
How much a Prepaze Academy franchise costs
Opening one Prepaze Academy costs an estimated $154,000 to $308,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are real estate improvements ($35,000 to $150,000) and additional funds (3 months) ($35,500 to $41,500). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial franchise fee | $39,000 | ||
| Travel, lodging, food, and other expenses while training | $5,000 | $15,000 | |
| Real estate improvements | $35,000 | $150,000 | |
| Rent (3 months of rent, plus a security deposit) | $16,000 | $24,000 | |
| Equipment, furniture, fixtures, décor, and supplies | $15,000 | $18,000 | |
| Computer hardware, and software | $1,000 | $3,500 | |
| Signs | $2,500 | $7,000 | |
| Misc. opening costs | $1,000 | $2,500 | |
| Grand opening marketing | $1,000 | $2,000 | |
| Advertising (3 months) | $3,000 | $6,000 | |
| Additional funds (3 months) | $35,500 | $41,500 | |
| Total | $154,000 | $308,500 | |
Source: Prepaze Academy Franchises Inc, 2024 filing, page 15
Prepaze Academy franchise fee
The franchise fee is $39,000. You pay it when you sign the franchise agreement.
Source: Prepaze Academy Franchises Inc, 2024 filing, page 10
Royalty and ongoing fees
| Royalty | The greater of 12% of gross sales or $750 a month, paid monthly, plus 2% to the marketing fund. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid monthly. |
| Technology Fee | Currently $250 per month |
| Franchise Agreement Transfer Fee | $2,500 |
| New Operating Principal or New Manager Training | $1,500 per person |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Prepaze Academy Franchises Inc, 2024 filing, pages 10 and 11
Other fees as filed, from pages 11–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Prepaze Academy does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Prepaze Academy Franchises Inc, 2024 filing, page 36
How Prepaze Academy compares
Of the 32 tutoring franchises on this site, Prepaze Academy is the 30th cheapest to open and the 26th largest by number of locations.
| Figure | Prepaze Academy | Typical tutoring brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $154K | $85K | $222K |
| Cost to open, high end | $309K | $153K | $477K |
| Franchise fee | $39K | $30K | $40K |
| Royalty | 12% | 9.8% | 6% |
| Brand fund | 2% | 2% | 2% |
| US locations | 2 | 27 | 21 |
| Shares earnings figures | No | 15 of 32 | 2,147 of 3,352 |
Typical is the median across the 32 brands in tutoring franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 1 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
| 2023 | 0 (0) | 2 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Prepaze Academy Franchises Inc, 2024 filing, page 36
Where Prepaze Academy locations are
At the end of 2023, Prepaze Academy had locations in 2 states. The most are in California and North Carolina.
- California1
- North Carolina1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 1 | 1 |
| North Carolina | 0 | 1 | 1 |
Source: Prepaze Academy Franchises Inc, 2024 filing, page 37
Who owns Prepaze Academy?
Prepaze Academy franchises are sold by Prepaze Academy Franchises Inc.
From Prepaze Academy Franchises Inc’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Prepaze Academy Franchises Inc, 2024 filing, litigation on page 10, bankruptcy on page 10
Prepaze Academy filings
The figures on this page come from Prepaze Academy Franchises Inc’s 2024 filing, issued July 19, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | July 19, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other tutoring franchises
All tutoring franchises
Prepaze Academy is also on these lists: education franchises.