ANDERSON PREPARATORY ACADEMY

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1 ANDERSON PREPARATORY ACADEMY Not just a place where Children go, but a Community where Families grow. FRANCHISE INFO PACK TABLE OF CONTENTS Page 2 Page 4 Page 6 Page 6 Page 6 Page 6 Page 8 Page 12 Page 14 Back Cover Mission of APA Our Story & Vision What is a Small Business? How Important are Small Businesses to the U.S. Economy? What is a Franchise? Why Franchise with APA? Top Franchise Questions Headache Table Who Are Our Franchisees? Contact Us TODAY!

2 MISSION OF APA Anderson Preparatory Academy creates a unique place to help cultivate the best world between children and their families. We are in the business of helping our clients relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly 5 star service and childcare of consistently high quality. Fresh Coffee & Tea ALL Day! With the understanding that for childcares to succeed in the 21 st Century, the attention must be paid to the actual clientele ~~ the Parents. That is why we also offer to meet the needs above and beyond childcare. Our Team is oriented to the Families, not just to the children. We cater to our parents by partnering with local businesses to help provide for their daily needs, as well as offer stress relievers. 2

3 Free Chair Massage Anderson Preparatory Academy has created an exciting new culture of childcares! Parents are de-stressed in our relaxing atmosphere, they receive their interactive fix, which in turn makes them more available to their children while they are at home. When children have the attention of their parents, they no longer act out, creating a happier and more calm home life. These same children then attend our academy and enjoy being exposed to all the different learning experiences made available to them. Anderson Preparatory Academy has developed a niche that families desire. Along with de-stressing the parents, we also save them time and money! 3

4 OUR STORY & VISION Anderson Preparatory Academy is based in Phoenix, Arizona, created by two Visionaries, Polly Anderson and Lisa Meisner. Polly entered into the childcare business in 2004, owning 3 schools since that time. Previously, she owned and managed rental properties. Lisa is a retired Registered Nurse, has worked with children in many capacities for 30 years, and joined Polly in We are also supported by an exceptional business consultant, as well as our APA Team Members, all with diverse life experiences, education, the love of nurturing children s gifts and talents, and a passion for creating a Whole Family Experience. Together this unique Team has more than 20 years of educational and business Experience to assist you in realizing your dreams! The childcare business is a complicated business to get into and become successful, and just as difficult remaining successful (if even open). We ve had some tough and exasperating times, whether with the inspection and licensing process, staffing issues, marketing and retention of families (not to mention getting paid). We know that the childcare industry has to evolve, and we believe it is our responsibility to educate Parents and the public in general on the Importance of 4

5 choosing a childcare. Additionally, better care childcare should include meeting the needs above childcare. Part of our job is to help parents understand that choosing an early learning center for their child is a Top Priority. Many families look for the cheapest deal they can find ~~ a daycare is just a daycare. But we believe a child is the MOST Precious Gift a parent can have; we need to provide an atmosphere full of love and interactive opportunities to bring out the natural gifts and talents of children to help them thrive and succeed in life! What children experience the first 5 years of their lives is monumental in their emotional, physical, social, academic and psychological development. Because we re so passionate about this, and are not just looking to make a buck, we ve decided we needed to share with others on how to open and own their own private academy without the fears and frustrations of feeling alone by creating a franchise opportunity. Now don t get us wrong, the childcare business can be a profitable business if done the right way. We ve spent thousands of dollars and countless hours creating a smoother flowing process for each step of starting and maintaining a private academy. After years of trial, error and experience, we ve created a system that works for everyone: child, parent, extended family, staff, and owner. We ve even created a table showing mistakes you can avoid by following our guidelines, as well as the money you can save (see page 12). This list is not all inclusive, and by joining us as an APA Franchise Owner you may earn back your initial franchise fee (and more) within the first 2 years! 5

6 WHAT IS A SMALL BUSINESS? (as defined on sba.gov) The Office of Advocacy defines a small business as an independent business having fewer than 500 employees. HOW IMPORTANT ARE SMALL BUSINESSES TO THE U.S. ECONOMY? (as defined on sba.gov) Small firms: Represent 99.7 percent of all employer firms. Employ half of all private sector employees. Pay 44 percent of total U.S. private payroll. Generated 65 percent of net new jobs over the past 17 years. WHAT IS A FRANCHISE? Franchising is an on-going relationship between a Franchisor and Franchisee that includes not only the product, service and trademark, but also the entire business concept itself in a complete system. -- (farrell-law group.com) WHY FRANCHISE WITH APA? When you join the APA Family, you are investing in a Turn-Key System. Turnkey means the most difficult aspect of owning your own business has been done for you; we ve experienced the trial and error of starting, running and growing a Private Academy, created a comprehensive Guidebook, and developed effective marketing strategies to spread the word of our Unique concept! Additionally, APA will provide extensive initial training for yourself and your staff, continuing education opportunities, as well as ongoing support in all facets of owning your Anderson Preparatory Academy. 6

7 We combine the best in classroom and hands-on, real world learning experiences, in order to attain and retain the necessary skills to embark on your APA journey with confidence! To be clear, starting and owning your own business (whether franchise or a start-up of your own creation) takes vision, passion, dedication and hard work. Buying a franchise means you own your business, but you are never on your own; we are here with you every step of the way. 7 TOP FRANCHISE QUESTIONS

8 HOW MUCH IS MY COST OUT THE DOOR? $150,000 initial franchise fee +$7,800 license, rent/purchase of building, inspections, architect, initial staff, utilities, furniture, signage, etc. WHO PAYS FOR THE LICENSE? You do. HOW LONG DOES IT TAKE? 2-6 months for inspections and license. WHO HIRES THE STAFF? You do. We will provide application forms, screening and interviewing consulting and guidance. We will also recommend a payroll company. WHO RUNS THE BUSINESS? You do. You can be Owner/Director or hire a Director. If you are looking to be an investor only, we ll try to pair you with someone interested in owning it and looking for financial backers. We will be here supporting you every step of the way. WHO DOES THE TRAINING? We provide initial training as part of the initial franchise fee. You will be responsible for continuing training, and your staff responsible for state required continuing education. We will also provide operating manuals, handbooks, etc, as well offer additional training courses (possibly at your expense) as they are developed. WHAT DOES THE TRAINING CONSIST OF? How to run an APA, customer service, guiding children and not managing them, positive interaction opportunities, interactive curriculum. WHERE DOES THE TRAINING TAKE PLACE? At our Training Center in Apache Junction, Arizona, and/or North Phoenix location, and possibly some at your facility. 8 WHAT DO I GET FOR MY MONEY?

9 Initial and ongoing training, operating Guidebook, face to face assistance, forms, copy of State Guidelines and forms, ongoing consultation, childcare manager software, regional advertising, Grand Opening assistance, marketing assistance. WHERE DO I BUY FURNITURE, SIGNS, CURRICULUM, ETC? We have standards and specifications you ll follow; you ll purchase items where your budget allows. For logo items - that will be done through our approved suppliers or a supplier must be approved through us first. WHO ADVERTISES? WHO CREATES THE ADS? A 2% Monthly Marketing Fee goes toward local, regional and national advertising and promoting. You will also do marketing, advertising and promoting at your cost (the ads must be approved by us first). WHERE DO I FIND THE CHILDREN? Affluent neighborhoods, large businesses, golf courses/clubs, open house. WHAT REQUIREMENTS DO LEARNING DIRECTORS and MANAGEMENT NEED? We ll give you a list of state requirements. IS THERE AN OPENING CHECKLIST? We will provide you with the state requirements to open a new early learning center. WHERE DO I FIND AN ARCHITECT? We have an architect we ll require you to use. WHAT DAYS AM I OPEN? HOURS OF OPERATION? HOLIDAYS OPEN? Minimally M-F from 6am to 6pm. You can do a study to see if opening at 5:30am or closing at 6:30pm is a need at your APA as well as a profitable option for you. You will be closed 6 major holidays. HOW DO I PICK A SITE? We will assist in this, and you may be required to do a market study for an area 9 you re interested in. Areas such as in affluent neighborhoods, big businesses, golf

10 courses/clubs, near an influential K-12 school. HOW BIG OF BUILDING DO I NEED? We will provide specifications. Minimally 7,000 square feet. One to hold a minimum of 85 children, have a lobby large enough for coffee bar and boutique, office, large activity room for enrichment activities and programs, kitchen, large playground with grass and trees. HOW MUCH IS RENT? INSURANCE? A VEHICLE? Will vary significantly depending upon area, city, state. WHAT MAKES APA DIFFERENT? The Anderson Preparatory Way! Parent Convenience Services: coffee, massage, gas & shopping cards, giveaways, monthly socials/events, personal touch/hugs/smiles/support Positive Interaction Opportunities with the parents and children Hands on interactive curriculum: flexible, not manage children, guide learning through their interests and talents Learning Directors are empowered (they re able to make decisions within preset guidelines without having to consult with management, which resolves issues more quickly to provide better parent satisfaction). Facility Directors are empowered (they re able to make decisions within preset guidelines without having to consult with the owner, which resolves issues more quickly to provide better parent and staff satisfaction). Customer Service is a given clients are wanting a Relationship. The PARENTS are our Clients!!! More upscale look and feel, but still loving and personable. More parent/extended family involvement (we cater to the entire family)! 10 HOW DO I CHARGE TUITION? HOW DO I CREATE POLICIES?

11 We ll provide you with written requirements/guidelines/contracts/policies. DO I NEED SPECIAL COMPUTER SOFTWARE? We ll pay for the first year of our required childcare management software. High speed internet access will be required. PDF creator or similar is recommended, along with an manager, Facebook and website accounts (which must be approved by us first). HOW DO I PAY YOU? Check, Paypal or wire transfer (you will pay any Paypal or transfer fees). WHAT KIND OF SUPPORT DO I RECEIVE FROM YOU AND FOR HOW LONG? Support is immediate and ongoing. HOW DO I CONTACT YOU? Phone and contact information will be provided upon application approval. 11 HEADACHE TABLE

12 Headache Avoided Money Saved First Year Notes Delay in Opening 1 month 20 children ($185/week) 40 children ($185/week) $15,400 $30,800 Example: ordering inspections in the wrong order delays your opening. (See Note 1) Staff Turnover (3 trained staff leave) $12,000 3 staff members leave if not screened/interviewed/hired/trained properly, then need to train 3 new staff members, at $2,000 per person. (Plus travel and lodging expenses not calculated into this figure). Renting CC Machine vs. Purchasing $2,154 $2,554 paid with 4 year contract plus balloon at end vs. purchasing a machine for $400. Doing your own bookkeeping vs. Professional bookkeeper $3,600 As an Owner, your time is worth minimally $100/hr. This figure based on doing your own books 3 hours per month. Landscaping yourself vs. professional $10, 400 Calculated at 2 hours per week. Client Loss if no Parent Convenience Services $9,620 1 child lost at $185/week tuition. (example Free monthly massage or Free coffee) Missed referral from above Client lost $9,620 1 referral lost at $185/week tuition. additional savings per each additional Free initial Training included in your Initial Franchise Fee $12,500 1 Owner, 1 Management, 3 other Staff plus materials (add $2,500 initial staff member trained).

13 Extra Monthly Marketing Fee we do Not charge 20 children $9,620 Calculated at 5% Gross Revenue for 1 year other companies may charge. 40 children 80 children $19, 240 $38,480 Time saved having a Guidebook of forms, policies, procedures, Requirements, guidelines, standards, specifications, Handbooks, logo creation, Website, etc. $146,000 Calculated 8 hours per day for 6 months at your time value of $100/hour. (it really took us much longer over the course of the past 2.5 years) 1 st Year of required Childcare Manager software paid $300 Full-time clients only, billed minimum on a monthly basis See Notes 2 & 3 Total $$ potentially SAVED in your First Year franchising with APA $231, $275,474 (See Note 4) Note 1 ~~ Calculated at tuition rate of $185 per week per child, plus minimal utility and curriculum paid for the month even though you were not allowed to open, not to mention potential children you could have gained being open that month. We ve known schools to be delayed for 6 months or more due to inspection issues! These figures do not include rent paid every month, which can be figured $7,000-$10,000 per month or more. Note 2 ~~ It is difficult to put into dollars saved by avoiding the headaches of Part Time and DES (government subsidized) clients. Example 1: Having all Full Time cash paying customers allows us to pay our staff holiday pay (which is impossible with a DES based facility because DES does not reimburse for days closed or days a child does not attend if more than 2 absences). Example 2: Being over or under staffed due to a Part Time child not coming on days scheduled, showing up on days not scheduled, or wanting to trade days at the last minute. Note 3 ~~ Soon to be calculated: Money time saved by not billing weekly, but billing clients monthly, quarterly every 6 months, or annually. Note 4 ~~ You could spend $75,000 to $350,000 or more on the purchase of a childcare business, plus spend the $230,000+ shown in the attached table, and not be successful or profitable doing it all alone. 13

14 WHO ARE OUR FRANCHISEES? Many people dream of owning their own business, being their own boss, setting their own hours, establishing their own financial abundance. Most never strive to make this dream a reality. Many of the few who do make the attempt, find out too late it s extremely more difficult than they ever imagined! One of our roles as a Franchisor is to make sure you are a Fit for owning not just a business, but an Anderson Preparatory Academy. We will meet for an interview to get to know you more, share more information on our Vision and our Journey thus far, and answer questions you may have. Below are a few Personal Gifts and Qualities we will be looking for in a potential APA Franchise Owner. Entrepreneurial Spirit Enthusiastic Visionary Has had Life Experiences Desires to Make a Difference Believes this World needs More Peacekeepers Personable, Social, Sincere, Grateful A Passion for Improving the Lives of Children and their Families, which in turn will Create a More Loving World! 14

15 We look forward to hearing from you Today! ANDERSON PREPARATORY ACADEMY For more information, please Call (602) Or visit

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