Best In Class Education Center logo

Best In Class Education Center Franchise

Audited Financials
EducationEst. 2010Renton, WA
www.bestinclasseducation.com

Risk Score

Pending analysis

Investment Range

$84,375 - $146,750

Franchise Fee

$35,000

Total US Locations

46

Business Summary

Best In Class Education Center operates education centers that provide supplemental learning opportunities for school-aged children in subjects like Mathematics and English. Best In Class Education Center also offers preparation courses for standardized tests such as the SAT and ACT, along with optional After-School and Summer Camp programs. Franchisees may also offer small group or private tutoring services and teach various high-school subjects from a dedicated brick-and-mortar facility.

Corporate History

BiC Franchise System Corporation was incorporated in Delaware on February 10, 2023. The company's founder, Hao Lam, has operated Best In Class Education Centers in Washington since 2010. BiC Franchise System Corporation began offering franchises for Best In Class Education Centers in March 2023. A predecessor company, Best In Class Education Center, LLC, previously offered franchises for Best In Class Education Centers from March 2011 to May 2021. Neither the current franchisor nor its predecessor directly owned or operated any centers.

Financial Overview

Investment Range

$84,375 - $146,750

Franchise Fee (Low)

$35,000

Franchise Fee (High)

$45,000

Royalty %

12%

Marketing %

2%

Equipment Costs (Low)

$8,000

Equipment Costs (High)

$50,750

Working Capital

$13,550

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor's financial statements, as detailed in Item 21, raise concerns about Best In Class Education Center's ability to provide services and support to its franchisees. For the period from February 10, 2023 to December 31, 2023, BiC Franchise System Corporation reported a net loss of $21,271. While the audited financial statements received an unqualified opinion, the company has not been in existence for three years, and management is required to evaluate if conditions raise substantial doubt about the company's ability to continue as a going concern.

Financing Details

Best In Class Education Center does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or obligations.

Performance Metrics

Total US Locations

46

Franchised Units

44

Corporate Units

2

Avg Square Footage

1,250

Franchising Since

2023

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew, Best In Class Education Center franchisees must not be in default under any agreement, provide timely written notice (between 180 and 270 days before expiration), sign the franchisor's then-current franchise agreement and related documents, sign a general release (subject to state law), pay a $2,500 renewal fee, remodel their center and upgrade furniture, fixtures, and equipment to current standards, and extend their lease for the duration of the renewal term. Best In Class Education Center may also require compliance with any minimum customer satisfaction requirements.

Training & Support Program

Franchisor Assistance

Before opening, Best In Class Education Center provides franchisees with access to its Manual, initial training, site review and approval, specifications for required goods and services, assistance with grand opening marketing plans, Site Drawings, and approval of design and construction plans. After opening, Best In Class Education Center sends a corporate trainer for two days of onsite support within 30 days of opening, grants a license to use its Learning Management System (LMS), offers general guidance and recommendations, conducts periodic field visits, and administers the brand and system development fund. Best In Class Education Center may also maintain a corporate website with local webpages, offer additional training upon request, negotiate purchasing agreements, and hold periodic conferences.

Initial Training Hours

70

Training Location

Seattle, WA (hybrid virtual and in-person at company-owned center)

Ongoing Support

After a Best In Class Education Center opens, the franchisor sends a corporate trainer for two days of onsite training and operational support within the first 30 days. Franchisees also receive a license to use the Learning Management System (LMS), general guidance and recommendations, and periodic field visits (with no minimum frequency). The franchisor administers a brand and system development fund, provides periodic training programs, and offers suggested retail pricing. Best In Class Education Center may also maintain a corporate website with local webpages, offer additional training, negotiate purchasing agreements, and hold periodic conferences.

Franchise Requirements

Ideal Candidate Profile

Best In Class Education Center seeks individuals who are passionate about teaching and/or working with children. While prior teaching experience is not required, candidates must have some previous experience working with children, ideally in an educational setting.

Industry Experience Required

Yes

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

hands-on

Territory Type

Protected

Territory Size Requirements

Best In Class Education Center defines its Center Territories based on student population, aiming to include between 15,000 and 18,000 students aged 5 to 17, which is determined using IntelleVue data. For a Satellite Office, the territory will include between 7,500 and 9,000 students aged 5 to 17.

Staffing Notes

Best In Class Education Center requires a Managing Owner to oversee the center, dedicating their best efforts (with full-time involvement strongly recommended) and teaching at least one class during the first year. This owner must also maintain a minimum 20% ownership, be approved by the franchisor, and complete all training. Franchisees can hire Managers who must be approved, meet specific criteria (including background checks, education, attitude, and experience), complete training, and sign a Confidentiality Agreement. Either the Managing Owner or a trained Manager must be present during all normal business hours. Teachers must meet minimum competency standards, pass reasonable background checks, and may be subject to certification training. All employees with access to confidential information must sign a Confidentiality Agreement. Franchisees are solely responsible for determining appropriate staffing levels and all employment-related decisions, and must clearly inform employees that they are the sole employer, not the franchisor.