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Franchise FAQs

Why Choose YEL?

{YEL!} franchise owners come to {YEL!} typically for one of three reasons:

  1. They want to be their own boss.
  2. They want to make a great living.
  3. They want to make a difference in their community.

{YEL!} offers entrepreneurs the unique opportunity to make a difference in their community and make a great living doing it.  We walk should-to-shoulder with our franchisees throughout their franchise business ownership.

Below is a comprehensive list of franchise prospects frequently asked questions.  

Do you have more questions?  Email us at chet@yelkids.com and we’ll be happy to field any of your questions.

FAQ

Why choose {YEL!}?

In 2023, {YEL!} had 19,279 students and received a 4.69 rating out of a possible 5.00 from 1,242 parent surveys.

Why do so many parents love our brand?  Here are three survey responses:

⭐️⭐️⭐️⭐️⭐️ 5 Stars! "One of our favorite community education classes my 4 kids have ever done! Fantasy opportunity and instructor!"  ~ Woodbury, MN Fencing Parent

⭐️⭐️⭐️⭐️⭐️ 5 Stars! "Both of my kids absolutely loved this class! Thank you!"

                                      ~ Minneapolis, MN Robotics Parent

⭐️⭐️⭐️⭐️⭐️ 5 Stars! "Loved it! Yes My son loved being able to create games - he talked about it for so long after class!"

                                      ~ McFarland, WI Coding Parent

We literally have 600+ 5 Star surveys, just from 2023, that rave about {YEL!}.

What makes {YEL!} different from other franchises?

Many franchise prospects are exploring multiple franchise opportunities.  The three things that set us apart are:

  1. Robust, comprehensive curricula in multiple subjects.  Chess, robotics, engineering, coding, sports, fencing, sewing, and we are developing more.
  2. Dynamic instructors.  We strive to find the right people, give them the right training, and support them throughout their {YEL!} tenure.
  3. FIVE STAR service.  We say what we do and do what we say.

How much is the investment?

We offer a competitive franchise fee of $22,500.  This includes all training, access to our custom-built database, online registration, all curriculum, and ongoing development.  

This table shows all of the projected costs. 

Type of ExpenditureLow AmountHigh Amount
Initial Franchise Fee$22,500$22,500
Vehicle$0 (if you already own one in working condition)$1,200 (represents 3 months of payments if you need a vehicle)
Real Estate, Furniture, and Equipment$200 (chairs, desk)$700 (if you have more expensive tastes)
Initial Teacher Supplies (i.e. chess sets, robotics materials, fencing gear)*$16,000$25,500
Travel and Living Expenses While Training$2,500$5,000 (if you want more expensive hotel and dining)
Grand Opening Marketing (i.e. community events, local advertising)$2,500$5,000
Ongoing Marketing$2,500$5,000
Technology Expenses (Mac computer and other tech)$2,500$3,000
Insurance$600$700
Permits and licenses (i.e. filing your business license)$200$400
Professional Fees (lawyers, consultants)$2,500$5,000
Miscellaneous Expenses$1,000$2,500
Additional Funds and Working Capital for First 3 Months$5,000$7,500
TOTAL$57,300$82,700

*NOTE: The $16,000 initial supplies investment is deferred until your programs are running.  You don't pay this at the outset.

Veterans of US Military Service are given a $6,000 discount.  {YEL!} employees receive a discount of $3,000 per year for each year they are with {YEL!}.

How much can I make?

The table below is our financial performance representation.  It is a legal statement of how {YEL!} performs in other markets.

Des Moines
Outlet1
Madison, WI Outlet1MN SE Outlet1
Gross Revenue2$201,267$169,312$257,362
Expenses3
Computer Software$812$842$192
Computer Expense (hardware)$0$0$0
Advertising$1,918$3,016$2,921
Insurance$2,213$2,389$299
Payroll Expense4$76,900$60,971$89,032
Office Supplies$1,456$681$305
School Supplies$5,646$2,998$20,715
Rent5$1,306$1,740$12,385
Travel and Entertainment$240$2,451$16,990
Postage and Delivery$631$2,302$303
Utilities6$384$384$7,517
Other7$5,172$4,919$28,654
Total Expenses$96,678$82,693$179,313
Outlet Net Profit Before Interest, Taxes, Depreciation and Director Compensation$104,589$86,619$78,049
Additional Franchise Expenses
Royalties8$12,360$10,159$12,868
Brand Fund9$2,013$1,693$2,574
Local Marketing Requirement10$2,107$370$2,226
Technology Fee11$2,013$1,693$2,574
Dropbox (file server) Fee ($24/mo)12$288$288$0
Total Franchise Expenses$18,781$14,203$20,242
Net Profit Before Interest, Taxes, Depreciation and Owner/Director Compensation, but After Franchise Expenses $85,808$72,416$57,807

1 The Iowa outlet began operating in June 2016. It was sold to a franchisee in 2024. The Madison, WI outlet began operating in June

2019. The SE Minnesota outlet began operating in October 2017. The SE Minnesota outlet operates in a territory that is on the larger

geographic range of the average territories in which we expect a franchisee will operate.

2 Gross Revenues include all revenues received by the outlet, excluding taxes and refunds. This is the same definition as used in the

Franchise Agreement. The SE Minnesota outlet also operated a fencing club which generated gross revenue of $13,450 in 2023. We have

included it in the total Gross Revenue for this outlet as we have included the expenses related to that club in the expenses of this outlet.

3 Because these YEL Businesses were already open and operating as of January 1, 2023, these statements do not include any start-up

expenses for opening a YEL Business.

4 Payroll Expense does not include a Director’s salary, as it is assumed you will serve as the Director and your salary will be the profit you

earn in the business. Payroll expenses does include payroll taxes, workers’ compensation and mileage reimbursement.

5 None of these locations incurred a rental expense for the rental of office space. The Iowa and Madison, Wisconsin locations incurred the

expense in the chart above for the rental of off-site storage. We assume you will work from your home and would not incur an expense for

rental of office space or for storage. The expense incurred by the SE Minnesota outlet was for space to operate a fencing club, which a

franchisee is not required to operate.

6 Utilities will likely consist of high speed internet and telephone expenses. If you operate out of your home, and already have these

services, you may not have this expense.

7 The category of “Other” includes recruiting costs, professional fees, processing fees (such as bank fees or PayPal fees), charitable

contributions, and teacher incentives. These amounts, and the categories of fees, will vary by location.

8 Royalties equal 6% of Gross Revenues (however, the SE Minnesota outlet only pays a 5% royalty). However, beginning in the 3rd year,

there is a minimum quarterly royalty payment obligation of $2,250 plus $15 for each public elementary school above 75 in the Designated

Territory. The Iowa outlet would have been required to pay an additional $284 to meet the minimum royalty payment obligation. We have

reflected this amount in the chart above. The royalty that would have been paid by the Madison outlet would have been more than the

minimum quarterly royalty amount. The SE Minnesota outlet would not have had the minimum royalty payment obligation because it has

not been opened for 3 years as of December 31, 2023.

9 Under our Franchise Agreement, you must contribute 1% of your Gross Revenues to our Brand Fund.

10 Under our Franchise Agreement you must spend 2% of your Gross Revenues on local advertising. To calculate the expense the Iowa

and Madison outlets would have incurred for this category if they had been operated as a franchised outlet, we determined the total Local

Marketing spend requirement for each outlet based upon their Gross Revenues, decreased the amount by what the outlet spent on local

marketing, and included the difference in the chart above. We performed this same analysis for the SE Minnesota outlet.

11 Under our Franchise Agreement, you must pay us a Technology Fee equal to 1% of your Gross Revenues.

12 Under our Franchise Agreement, you must pay us a $24 monthly fee to manage the file hosting service where our curriculum is stored.

The SE Minnesota outlet did not pay this file sharing fee.

The actual revenues any individual outlet achieves will vary significantly based on a number of factors, including competition in the

territory, receptiveness of schools in the territory to having after-school activities or third party vendors on their premises, the length of

time the Business has been in operation, and the efforts, abilities and activities of the owner of the Business and its employees. Likewise,

the expenses of each outlet will vary significantly, depending on the manner in which the owner of the outlet operates the business, the

cost of labor and other items in the territory, and the nature of local advertising/marketing conducted in the territory.

The actual revenues any individual outlet achieves, and the expenses it incurs, will also vary significantly based on the number and type of

classes offered by the Business, the price charged for each class, and the average enrollment in each class.

Some outlets have achieved these results. Your individual results may differ. There is no assurance you’ll achieve as much.

These figures were prepared without an audit. Prospective franchisees should be advised that no certified public accountant has audited

these figures or expressed his/her opinion with regard to the content or form.

Written substantiation for the financial performance representations made in this Item 19 will be made available to you upon reasonable

request.

Other than as discussed above, we do not make any representations about a franchisee’s future financial performance or the past financial

performance of company-owned or franchise YEL Businesses. We also do not authorize our employees or representatives to make any

such representations, either orally or in writing. If you are purchasing an existing YEL Business, however, we may provide you with the

actual records of that YEL Business. If you receive any other financial performance information or projections of your future income, you

should report it to the franchisor’s management by contacting Chet Gunhus at 343 Bluff Road, Carver, Minnesota 55315, telephone (800)

959-9261, the Federal Trade Commission, and the appropriate state regulatory agencies.

What is the ROI (Return on Investment)?

The website Learn2Franchise states that a 30-50% return on investment is a quality return for franchisees.  With our low start up costs at {YEL!}, and our high rate of opportunity, we feel that if you hustle and use your entrepreneurial spirit, you'll do well.

How hard do I have to work?

We call Youth Enrichment League a "franchise that fits your life".  No 5am donuts, no 10pm delivery issues, or 2am closings.  {YEL!} operates in a similar fashion to the school-year calendar.

That being said, business owners need to have hustle as part of their DNA.  Successful entrepreneurs are rainmakers.  They go out and hustle to get business.  If you have hustle, you'll make it happen.

Do I have to find and hire the teachers?

As a franchise owner, the teachers will work as your employees.  Our franchise system has documentation, processes, and procedures for how to recruit, hire, train, and retain quality teachers.  We'll share all of this with you during the franchisee training process.

How do I hire teachers?

With 20 years of experience serving communities, we've worked with a lot of amazing instructors.  We can't do what we do without dedicated, caring teachers.  We have developed best practices for your staffing needs and we will share all of that with you during the initial training, but ultimately the recruitment and retention of staff is up to each franchisee owner.

Contact Us today about how to Join the League.

Do I have to find the schools/customers?

Yes.  You will have to call on schools to see if they are interested in our programs.  Again, we have a sales manual and a marketing manual that help you understand this initial process.

After 20+ years of experience in this industry, working in dozens of communities, and hundreds of schools, we are confident that schools in your community will want what {YEL!} is offering.

Do franchise business owners need to be certified teachers?

It is not required to be a professional teacher or coach, or have a teaching certificate to own a {YEL!} franchise.  We have found that our more successful regional directors have experience with teaching, coaching, or working with children, and have some sales experience.

Franchisees will need to pass a background check as part of the franchise vetting process.

Do I need to be a chess expert? Or a Robotics expert?

No.  It is helpful to have knowledge in one of our subject areas, but it is not required.  Franchise owners are in charge of finding excellent instructors and putting them in front of their student-customers.

Franchise owners may decided to become an expert in one of the fields that {YEL!} offers, but their primary objective is to be the best leader for their teachers, customers, and community.

Do I own the business?

Yes, franchise business owners are typically local owner operators for their business.

Who makes a good franchise business owner?

We have outlined some franchisee avatars on our Ideal Candidates webpage.  Besides those franchisee profiles, the qualities we are looking for are, people who are:

  • self-starters
  • dedicated owners of their business
  • passionate for delivering FIVE STAR or "Over the Top" customer service
  • experienced working with children
  • experienced with some sort of sales

Contact Us to get more details about owning your own {YEL!} business.

Do I need a store front?

It is not required to have a store front.  In fact, we recommend that you run the classes at local schools and community centers and have an office in your home.  

We suggest this approach for a two reasons:

  1. It is easier to expand without a store front.  Think of your teachers as mobile classrooms, traveling to one location on Monday, a different location on Tuesday, and these locations can be 10, 20, 30 minutes away from each other.  A store front typically draws from an area 15-20 minutes away.  Your mobile teachers can cover a much greater distance.
  2. A store front requires a lease.  Typical leases are thousands of dollars per month, and are for many years.  We feel this is riskier, and more cost-intensive than running programs at local schools.

Am I on my own?

At {YEL!}, we say, "You go into business for yourself, not by yourself!"  What we mean by that is that we walk should-to-shoulder with you throughout your {YEL!} franchise ownership.  We have a franchisee who has been in our business for 10+ years and we still discuss business strategy and new ideas.

You are never alone.  We are just a phone call, or a Zoom meeting, away!

What curricula do you offer?

lease view our Programs webpage to view the programs we currently offer.  Currently we offer courses in:

  • Chess and chess tournaments
  • Fencing and fencing tournaments
  • Project Runway sewing
  • Brick Builders using LEGO® bricks and Brick Builder Decathlon events
  • Robotics
  • Coding
  • Sports [flag football, floor hockey, basketball, soccer, track and field]
  • Woodworking
  • PreK Brick Builders
  • PreK Sports
  • Guitar

We are constantly developing new curricula as well.

Do you offer Veteran's discounts?

{YEL!} holds those who have served to defend our liberty and freedom in high esteem.  If you have served our country through the military, we would welcome the opportunity to extend to you a $6,000 discount off of the $22,500 franchise fee as an appreciation for your service.  So veterans initial franchise fee is $16,500.

Please contact us for specific details.

What does a day in the life of a franchisee look like?

Thank you for asking:-)

Honestly, no two days are the same.  One day is the thrill of landing a new client, the next is anticipation for your next big tournament, or community event.  Another day is a strategy day for how to grow more classes in your market.  Another day may be a day of gratitude as you meet with all your teachers for a get-together.  I can tell you this...you won't be bored!

Contact Us for more details on how to Join the League.

How long does it take to open a {YEL!} franchise business?

Once the Franchise Agreement is signed, we anticipate that new franchisees will be able to start setting up client meetings in a 6-8 week time period.  

How do I join the "League"?

Contact Us to get more details by or visit our The Process webpage to learn more about the steps to owning your own {YEL!} franchise.

What are the {YEL!} royalties?

{YEL!} is offering competitive royalties:

  • 6% royalty fee.
  • 1% Brand Fund
  • 1% Technology fee

For a complete breakdown of all fees and what they mean, Contact Us, to start the process and receive our Franchise Disclosure Document [FDD].

Do I have to teach the classes myself?

As a franchisee, you are not required to teach the classes yourself.  That being said, it is important to our FIVE STAR Service principle to deliver all programs as advertised.  Meaning you may need to substitute teach for a sick teacher.

Our most successful regional directors have taught multiple classes with {YEL!}.

Interested in Franchise Opportunities? Call (800) 959-9261 or fill out the form below to learn more!

  • This field is for validation purposes and should be left unchanged.

{YEL!} franchises are not currently being offered for locations in California, Hawaii, Indiana, Maryland, Michigan, New York, Rhode Island, Virginia or Washington, or to residents of those states.

Contact {YEL!}

Youth Enrichment League
(800) 959-9261

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