Quiz Holdings, LLC Franchise Disclosure Document (FDD) Overview

1. Introduction

The Franchise Disclosure Document (FDD) is the primary source of information that a prospective franchisee uses to evaluate an investment in a franchise system. This page summarizes the key elements of the Quiz Holdings, LLC FDD, highlights the most important disclosures, and provides guidance on how to interpret the information.

2. Franchise Profile

2 Business Concept

Quiz Holdings, LLC operates a network of interactive learning centers that combine educational games, tutoring services, and technologyenabled assessments. The brand positions itself as a funfirst approach to academic improvement for K12 students.

3 Offered Territories

Territorial rights are granted on a exclusive basis within a defined radius or ZIPcode cluster. The exact size of the territory is disclosed in the Territory section and may vary based on population density and market potential.

4 Initial Investment

The total initial investment range, as stated in Item 7 of the FDD, is $120,000 $210,000. This amount includes:

• Franchise fee ($35,000)
• Leasehold improvements ($45,000 $80,000)
• Equipment and technology ($20,000 $35,000)
• Initial inventory and supplies ($5,000)
• Training and travel expenses ($5,000 $10,000)

3. Legal Structure & Ownership

Quiz Holdings, LLC is a limited liability company organized under the laws of the State of Delaware. The franchisors principal place of business is located at 1500 Market Street, Wilmington, DE 19801. The FDD lists the following individuals as principal owners:

• John A. Patel Managing Member
• Linda M. Gonzales CoMember
• Samuel K. Lee Investor

These individuals hold a combined 78% of the equity in the company. The remaining shares are owned by institutional investors and a small group of private equity partners.

4. Fees and Ongoing Costs

4.1 Initial Franchise Fee

Nonrefundable $35,000 payable upon signing the Franchise Agreement and receipt of the FDD.

4.2 Royalty Structure

Ongoing royalty fees are calculated as 6% of gross revenues, payable monthly. An additional advertising contribution of 2% of gross revenues is required and is placed in the national advertising fund.

4.3 Other Required Payments

5. Financial Performance Representations (Item 19)

Quiz Holdings, LLC provides a Financial Performance Representation (FPR) for franchised locations that have been operating for at least 24 months. The representation includes the following metrics (all figures are averages):

• Average annual gross revenue: $540,000
• Average net profit before tax: $78,000 (approx. 14% of gross)
• Average time to breakeven: 18 months

Franchisees are reminded that individual results vary based on location, management skill, and market conditions.

6. Training and Ongoing Support

New franchisees must complete a twoweek, onsite training program at the corporate headquarters. Training includes:

• Curriculum delivery methods
• Operational systems and pointofsale software
• Marketing and community outreach tactics
• Human resources and staff management

After opening, franchisees receive ongoing support through:

• Monthly webinars covering best practices
• Quarterly onsite visits by regional field consultants
• 24/7 technical help desk for software and hardware issues
• Access to a proprietary learning management system (LMS)

8. Termination, Transfer, and Renewal

Termination: The franchisor may terminate the agreement for cause, including failure to pay royalties, breach of operational standards, or insolvency. A notice period of 30 days is required before termination becomes effective.

Transfer: Franchisees may sell or assign their rights with the franchisors prior written consent, which cannot be unreasonably withheld. Transfer fees are set at $5,000 plus any applicable due diligence costs.

Renewal: The franchise term is ten (10) years, with an option to renew for an additional ten years provided the franchisee is in good standing and pays the renewal fee of $30,000.

9. Key Risk Factors

Prospective franchisees should consider the following risks before investing:

• Dependence on local school calendars and academic cycles.
• Rapid changes in educational technology may require additional capital expenditures.
• Competitive pressure from online tutoring platforms and afterschool programs.
• Potential regulatory changes affecting private supplemental education providers.

10. Next Steps for Interested Parties

1. Request a copy of the full FDD from Quiz Holdings, LLC (available upon signing a confidentiality agreement).
2. Review the document carefully, paying special attention to Items 123.
3. Consult with an attorney experienced in franchise law and a certified public accountant.
4. Attend an informational webinar or the Discovery Day event hosted by the franchisor.
5. Submit a formal application and be prepared for a background and financial review.

For more information, visit the official website at https://www.quizholdings.com or contact the franchise development team at franchise@quizholdings.com.