How Class 101’s Business Model Helps Franchisees Thrive
Three important college planning services generate revenue all year long
Class 101 franchise owners have thriving businesses all year long — not just during the school year — thanks to our business model. Franchise owners have three ways to generate revenue: retainer agreements for one-on-one consulting services, classes to prepare students to excel at the ACT and SAT and organized campus trips.
With an affordable franchise fee of $27,500, Class 101’s three-fold business model offers the potential for high, year-round revenue from day one. Several of our franchisees have surpassed the $100,000 revenue mark in their first or second year.
“Class 101 meets a growing need in communities across the country. With plans to expand to 100 locations by 2020, we offer an excellent opportunity for entrepreneurs who have a passion for helping high school kids and their families,” says Tom Pabin, Founder and CEO of Class 101.
Retainer agreements are the bulk of our business
One-on-one consulting with students is the bread-and-butter of our business. Class 101 fills a critical need not met by the current high school counseling system. The typical high school counseling experience is rushed and impersonal. In fact, most students spend very little time with a guidance counselor throughout their entire high school experience. Class 101 offers a much-needed solution, working one-on-one with students and giving each student 30-50 hours of individual planning time.
“High school counselors are overwhelmed, typically spending less than one hour individually with students. As a result, high school students apply to small number of schools that either their parents or friends attended. Most of the time these are the absolute wrong schools for the student,” says Tom Pabin, Founder and CEO of Class 101.
Class 101 franchisees enjoy an impressive average close rate of 90% nationwide and report an average sale at $2,800. Parents typically pay a down payment of $800, then $100 per month for the remainder of the retainer. The retainer aspect of the business model gives franchise owners the ability to plan income and expenses over time, making it easier to grow their businesses.
Class 101 is positioned to become the college planning service of choice and is rapidly expanding with opportunities nationwide. Empowering high school students and helping them find the perfect colleges is at the core of what we do. Owning a Class 101 franchise is a great way to establish a strong sense of pride and purpose while helping students and their families save time and money.
ACT and SAT prep classes provide additional revenue
Another revenue stream for Class 101 franchisees is offering ACT and SAT preparatory classes, which are extremely popular. Typically held at a library or local school, these courses are available to students who are not part of a regular consulting retainer.
Nearly 2 million students took the ACT in 2015, and it is accepted by all four-year colleges and universities in the United States. Students may take the ACT up to 12 times, and many Class 101 students will take the courses five to seven times over three years. Class 101 students on average bump up their ACT score by 3.1 points. With the ACT, just a few points can equate to significant additional dollars available to high school seniors in scholarship and grant funds.
Organized campus trips are an extra service
A third aspect of our business model is organized campus trips. We believe that visiting campuses is a crucial part of the discovery process for students. As part of our range of services, we help students narrow their college choices based on several criteria: distance from home, size of campus, their major area of study, weather, city size and environment (urban or rural), and the type of school, such as private, state, religious, etc.
We organize campus trips based upon regions and typically include three to four college campuses per trip. These trips give students the opportunity to meet campus admissions counselors, visit classrooms and tour campus facilities so they can really get a feel for campus life. This affords them and their families a much more educated decision-making process. Most families visit a college for just two hours before deciding on applying. At Class 101 we recommend a minimum of 10 in-depth campus visits to ensure students find the best fit.