Teen Road to Safety, Inc.
30031 Santa Margarita Rancho Santa Margarita, CA 92688
We offer franchises for a driving school operated under the “Teen Road” name that are located in a designated area at a sponsored location, such as an approved car dealership. In addition to offering franchises, we operate businesses of the type being franchised to you. As of December 31, 2017 we have 3 franchised locations and 4 locations that we own and operate. In the future we may operate or franchise a stand-alone model, which would not be located at a sponsored location. Teen Road uses its specialized business format for the operation of its driving schools. Teen Road continues to refine, modify and improve this business format, which includes trade secrets; trades or service names, marks and logos; know-how and marketing skills; office designs and layouts; trade dress; methods, standards and procedures for operations; and marketing and advertising programs, materials and philosophies (the “Teen Road Business Formaf'). The business you will conduct (we will call it the “Franchised Business”) refers to a business using our trade and service mark TRTS TEEN ROAD TO SAFETY and associated marks, logos and designs (the “Licensed Marks”) and System (defined below) to operate a driving school offering driver's education programs, courses, training and associated products and services (“Teen Road To Safety Driving School”). We have the right to modify, and continue to modify, the Teen Road Business Format for use in the Franchised Business. The Franchised Business will use the methods and procedures we develop (our “System”), which includes standards and methods of operation, accounting, marketing, advertising and public relations, and the standards for conducting a Franchised Business. Our current standards and procedures for conducting a Franchised Business are set forth in our confidential Operations Manual, which we continue to modify and revise as we learn the business of franchising. Each Teen Road To Safety Driving School franchise operates under, a franchise agreement (“Franchise Agreement”), the current version of which is attached as Exhibit C, and in accordance with our confidential . Operations Manual. The System presently includes the Licensed Marks and associated marks, logos and designs; advertising, publicity and other marketing programs; training programs and training materials; and other requirements as stated or referred to in your Franchise Agreement and in our confidential Operations Manual, or otherwise in writing by us and designated as part of standards for the system, which may be included in a document known as the “System Standards” (collectively, the “System Standards”). The 1 System Standards will be applied to all Franchised Businesses, although we in our business judgment may make exceptions based on local conditions, special circumstances or different contractual provisions. The System, including System Standards, may be changed or modified from time to time by us, in our sole discretion, and you will agree to comply with the System and System Standards as they may exist from time to time (including all operational policies, procedures, programs and plans set forth in the confidential Operations Manual or otherwise in writing).
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Franchimp Summary Rating
6/10
Investment Accessibility
6/10
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Upfront Franchise Fees
Minimum: $100,000 Maximum: $100,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $181,600 Maximum: $278,400
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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