New Horizons franchise owner candidates should have a passion for delivering high quality IT training and helping local area businesses develop their people. However, New Horizons franchise candidates should also have the financial stability to get the business off the ground and ensure that the location will be able to run despite potential obstacles. Franchise owners’ initial investments may vary widely based on the territory size and location, the size of the first center, and the local market economics.

Minimum Liquidity Amounts

Franchise owner candidates must have a minimum of $500,000 USD in net worth in order to be considered. Franchise owners must generally have at least $250,000 USD in liquid assets as well. Capital requirements for opening multiple centers may surpass several times these amounts.

Initial Franchise Fees

Initial Franchise Fees may be anywhere from $25,000 to $150,000.

Up Front Expenses

In addition to franchise fees, there are many expenses that franchise owners must pay for in order to open a New Horizons location. Rent, real estate fees, security deposits, and taxes on the property where the center will be opened may need to be paid to a landlord or real estate company before setting up the location. Renovations may also need to be made to optimize the location. Exterior signs will need to be purchased from local vendors. Furnishings, equipment, hardware, software, inventory, and supplies will all need to be purchased from local vendors before a franchise location can be opened. Business insurance must also be acquired.

Training Expenses

Before opening a New Horizons location, Owners and/or designated General Managers must attend initial Franchise Training. It is recommended that franchise owners and any key managers for the new location also attend this training. All living expenses must be paid to attend the courses at the specified location. Living expenses may include airfare, hotel costs, travel expenses, and daily meal expenses.

Ongoing Operational Costs

Once the business becomes operational, there will be ongoing costs like rent, salaries, electricity, taxes, marketing costs, office supplies, etc. These must be paid accordingly each month as in any business. As well, there are certain royalties and fees paid to New Horizons as part of the operational costs:

  • Royalty: 6% of gross revenue
  • Marketing Fee: 2% of gross revenue

Intellectual Property and Software Fees

New Horizons, software vendors, and courseware vendors may require both initial payments and monthly fees for using software and courseware for training. These fees will be discussed before initial agreements are made. As new technology and software is introduced, fees may change, so franchise owners should be prepared for periodic fluctuations in monthly expenses.

Your Estimated Initial Investment

Type of Expenditure Amount Method of Payment When Due To Whom Payment is to be Made
Initial Franchise Fee $25,000 - $150,000 Lump sum; non-refundable Upon Signing Franchise Agreement Us
Training (IFT) $2,000 - $5,000 As Incurred During IFT Travel services and Employees
Computer Hardware and Software $85,000 - $150,000 Lump sum or financed Prior to opening Various Vendors
Software Vendor Fees $0 - $10,000 Per agreements with vendors; vendors determine refund conditions Per agreements with vendors Various Vendors
Furniture and Furnishings $25,000 - $45,000 Lump sum or financed Prior to opening Various Vendors
Inventory and Supplies $1,500 - $3,000 Lump sum or financed Prior to opening Various Vendors
Student Courseware Fees $6,000 - $83,000 Lump sum dependent upon terms with courseware vendor Monthly Various Vendors and Us
Leasehold Improvements $3,000 - $20,000 Lump sum or financed Prior to opening Various Vendors
Exterior Signs $2,000 - $5,000 Lump sum or financed Prior to opening Approved Vendors
Rent $5,000 - $20,000 Lump sum Monthly Landlord
Security Deposits $2,500 - $20,000 Lump sum, may be refundable Prior to opening Landlord and Utility Companies
Business Insurance $1,000 - $4,000 Lump sum As required by insurers Insurance companies
Additional Funds - 1st 3 months after Effective Dates $100,000 Varies; typically non-refundable As required Varies
Training Employees on System $0 - $10,000 As needed You deliver this training to your own staff Various
TOTALS $258,000 - $625,000      

*Above amounts are based on a single unit in the USA. Franchising Fees and Total Estimated Investment for one unit or multiple unit franchises outside of the USA may vary.