How Does the Monthly Plan Work?

Your Customers now have the option of paying for their lessons with recurring monthly card payments.

How much are the monthly payments?
This varies depending on:
  • Class Type
  • Lesson Cost
  • Non-Member Fees
  • Active Weeks Per Year
  • Discounts Applied
 
What are "Active Weeks"?

As the monthly payment is worked out based on charges over 12 months, FranScape needs to know how many weeks of the year each Franchisee will be teaching classes - these are the "Active Weeks"

 
How are the monthly payments calculated?
Our Pay Monthly element is calculated on a charge per day basis, not a per lessons charge basis. The "Per Lesson" amount is for comparative purposes and representative of payments made and lessons held over a 12 month period. Consequently, the Monthly plan is designed for long term client relationships, not short, one-off bookings.
If a client only plans on being a customer for a short period of time, the charges for the Monthly Plan will be out of kilter with the per lesson fee. We recommend only accepting these bookings on a Pay in Advance basis.
 
The price of an individual lesson is multiplied by the number of lessons in a year (Active Weeks). This is then divided by 12 months.
 
(Lesson Fee x Active Weeks) / 12 Months

Please Note: Your Franchisor may implement a discount that makes the Monthly Plan a cheaper prospect for Customers. They set this discount and it applies to all classes in FranScape. For Example:

If  your normal, pay in advance lesson fee is £10.00 and the Franchisor sets a global discount that makes them 10% cheaper on the Monthly Plan, the per lesson price for plan customers will be £9.00.

 

Example:

Lesson price: £5.00
Active Weeks: 40 (the number of weeks the service takes place during a year)
Date signed up: 25th September
Date first lesson: 1st October
Date Monthly Payment Taken (Client choice): 25th of the month

£5 x 40 weeks = £200 charged per year / 12 months = £16.66 per month

Daily charge is calculated on the month it is required:

Number of days in October is 31

Daily charge for October is £16.66 / 31 = £0.54 (Note system works to whole pence so will round up £0.537 = £0.54) 


Sign Up
Upon sign up the client will pay:

1. 30 days deposit = £16.66

2. A charge between the 1st lesson and the date of the payment as chosen by them:

Number of days between 1st October (date of first lesson) and payment date 25th = 24 days.

24 days x 0.54 Daily Charge = £12.96

£16.66 + £12.96 = £29.62 initial fee.


Ongoing

The customer pays £16.66 every month on 25th.

Leaving 

FranScape requires a minimum of 30 days notice although a client can chose their last session beyond that.

Customer payment date is 25th of the month.

Notice given 10th May to leave on 20th June. (21 days left in May and 19 days for June total 40 days) - customer has chosen to leave just beyond 30 days to have some extra sessions. 

Customer has already paid up to 24th May. As customers pay in advance, they have already paid between 10th May and 24th May. 

Daily Charge for May = 16.66 / 31 = £0.54 x 6 days = £3.24

Daily Charge for June - 16.66 / 30  = £0.56 x 19 days = £10.94

Total Daily Charge = £14.18

Less Deposit returned of £16.66

Final Balance is £14.18 - £16.66 = £2.48 Credit.

Client is owed a refund of £2.48

Will the monthly payment amount change?

The monthly payment amount will only change in these circumstances:
  • The Customer has credit applied to their account
    • In this case the next payment will be the monthly fee minus the credit
  • The Consumer has been moved to a class with a different monthly fee
  • The franchisee introduces a price rise
    • Notice must be given in advance

What is Included in the Initial Payment?

The initial payment is made up of 2 elements:
  • Fees covering the period from the date of the consumer's first lesson under the plan to their next payment date
  • A full month held in deposit

PLEASE NOTE: The full month in deposit does NOT constitute the next scheduled payment. The month in deposit is held until you give the required 30-days’ notice to leave Franscape, at which point it will be applied as credit to the customer's Franscape account to cover any monies owed. Any left-over credit will then be refunded.