International Licenses

CORE will authorize the preparation of a customized license agreement for each country that CORE seeks to develop local franchises. The license must be granted to an individual or company that has the financial means to both advance franchise sales and manage franchise operations across the country.

Calculating the Financial potential of the country:

1. Determine the population of the country:
2. Divide by 35,000 (postal code territory)
    Multiply by percentage of country that has Internet coverage.
3. Multiply number 2, times 20%.
    This equals the amount of franchise sales that will be expected each year for 5 years.
4. Multiply the amount of franchises for year 1 times the amount of the franchise fee (year 1 = minimum of $6,000).
    This is the total amount that the International License owner is expected to receive for year one.
5. Multiply the amount of the number of franchise owners during each year by $350,000 .
    The $350,000 is the minimum amount of sales a franchisee should be able to achieve each year in Internet sales.
    a. Multiply this amount by 28% and this is the profit you should receive from Internet sales.
    b. Multiply the summer initiative sales numbers from all franchisees times 20% and this is the amount you should receive from all summer initiative sales.
    c. For on-location tutoring revenue, multiply this amount by $150,000 for the amount of all franchise owners.
6. Multiply this amount by 3% and this is the amount of funds you shall receive for profits from on-location tutoring royalties.

Jump start each Franchise with the “College Preparation Initiative”

1. The “College Preparation Initiative” programs taking place in the licensee’s country, the licensee shall receive 20% of NET profit before compensation is received by the franchisee. Plan on 50% of franchisees conducting 2 or more foreign programs.

2. Franchisee will profit anywhere from $20,000 to $40,000 per program. In addition, the franchisee will receive about $250,000 of yearly live on line sales from each program. International license cost New franchise operations that are sold internationally are generally sold at the per person cost of a country’s population beginning at $.10 per person. To proceed with a ten year International License for each country, the individual or company must submit a non-refundable deposit of $50,000. The International license is subject to be renewed.

Calculating the International License Cost:

1. Determine population of company

2. Multiply the population number by $.10

3. Determine the percentage of the country that is covered by Internet reception.

4. Multiply the Internet coverage percentage by the figure in number 2. This is the asking amount for the country license.

Payments to CORE, Houston:

1. CORE shall receive 10% of both the monthly income from all Internet sales and on- location sales.

2. CORE shall receive 20% of the NET profit before, franchise owner compensation for all “Language and College Preparation Initiative” programs taking place in the Licensee’s country.

Obligations of CORE- Houston

Houston will establish the licensee’s country wide website similar to Houston and establish local franchise website. All three points will be connected to each other. Houston will install its Franchise Management System in the Licensee’s computers in which it wills the Licessee manage all country – wide franchisees.

  • ‣  Houston will create Licensee’s Franchise Agreement for its franchises.
  • ‣  Houston will train in Houston for a period of one week up to four employees of the Licensee.
  • ‣  Houston will provide one or more employees to help the Licensee establish its country wide operation.
  • ‣  Houston will provide all curriculum and operational details needed to conduct the Licensee’s "Language and College Preparation Initiative".
  • ‣  Houston will assist the Licensee’s training program for its franchises.
  • ‣  Houston will help Licensee enlist national tutors for its CORE Live on Line tutoring and assist in locating on-location tutors.
  • ‣  Houston will refer all potential sales on its own and other Licensee’s websites to the Licensee of its designated country

Obligations of the International Licensee

  • ‣  Explicitly follow the directions of CORE Houston.
  • ‣  Establish tutoring and franchise development office.
  • ‣  Provide all desks, furniture, and computers.
  • ‣  Hire a minimum of two full-time staff. Market franchise sales throughout the country.
  • ‣  Market CORE tutoring sales throughout the country. With the help of the local franchisee, market summer initiative programs throughout the country.
  • ‣  Provide and maintain franchise training to franchisees per the Houston franchise agreement.
  • ‣  Spend COOP advertising funds for the benefit of all country wide franchises.
  • ‣  Provide regional meetings and incentive programs for franchises throughout the country.
  • ‣  Participate in International Franchise Convention per Houston requirement.