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13 cards from this deck
Business expansion method using established brand & proven model
Original business that owns brand & grants permission to operate
Entrepreneur who purchases right to operate under franchisor brand
One-time payment for the right to operate the franchise
Regular payments, typically 4-8% of gross sales to franchisor
Operates under established brand with proven track record
Expensive advertising costs shared across all franchise locations
Immediate access to consumers who already know & trust the brand
Franchise fees require substantial upfront capital (tens of thousands+)
Must follow franchisor rules on hours, products, pricing, etc.
Regular royalties reduce profit margins permanently
Brand problems/negative publicity affects all franchisees
Through licensing rather than direct investment
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