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Huntington Learning Center Review (2021)

Written by: Patrick Findaro
Last Updated by Marina Longo: August 18, 2022
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This article is based on its 2020 FDD

The Huntington Learning Center franchise offers an opportunity to own a franchise in the Education Industry. As a franchisee you will provide in-person tutoring and test prep services to school-aged students to be conducted at your brick-and-mortar facility.

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What is Huntington Learning Center?

Raymond J. Huntington founded the business in 1977 and has run the business since with his wife. They have developed the “Huntington System” which consists of uniform standards and procedures for the marketing and operation of a Franchised Business.

The Huntington Learning Center had 282 franchised locations open at the end of 2019.

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huntington learning center franchise

Huntington Learning Center Franchise Cost

The total investment necessary to begin operation of a Huntington Learning Center franchised business ranges from $133,458 to $276,669.

Financing:

New Franchisees can borrow up to $100,000 in opening their first Franchised Business, providing they meet our requirements. The “Lender”, who is Huntington Learning Corporation, would deduct a nonrefundable $4,200 loan facility fee from the loan amount.

Additional Cost Breakdown

Additional Cost Breakdown

Type of ExpeditureAmount
Initial Franchise Fee$28,000
Travel, living expenses for initial training$0 – $4,690
Curricula and testing Materials$19,247 – $19,847
Furniture, Computers$33,407 – $38,053
Start-up Supplies$4,000 – $8,000
Advertising$19,124
Training & Technology Initial Fee$6,000
Training & Technology Fee$380 (Monthly)
Architect Design$0 – $5,500
Security & Utility Deposits; license fees$500 – $3,000
Real Estate and Improvements$0 – $77,000
Exterior Sign$500 – $7,500
Interior Graphics$2,175 – $5,875
Professional Fees$500 – $3,000
Loan Facility Fee$0 – $4,200
Insurance$1,625 – $6,500
Additional Funds (3 months)$18,000 – $40,000
Total Investment$133,458 to $276,669.
huntington franchise

Ongoing Franchise Costs and Fees

Royalty: 9.5% of Gross Revenue per month ($2,000 minimum)

Contribution to the Huntington Ad Fund: 2% of Gross Revenue per month ($500 minimum)

Minimum Advertising Requirement: $57,000 per year

Other Fees (Accounting, Call Center, Internet and Software): ~$1,500 per month

Huntington Learning Center Sales Figures

The following sales figures represent 212 of the 286 franchised locations.

Table 19-1 2019 Gross Revenue of the 212 Hunnington Learning Centers open all of 2019 under the same franchisee (the “Open Franchise Centers”)

Average Gross Revenue Number greater tan average Percent greater than average Lowest Gross Revenue Highest Gross Revenue Median Gross Revenue Number greater than median Percent greater than median Lowest Gross Revenue Highest Gross Revenue
$510,686 79 37% $60,676 $3,045,736 $435,074 106 50% $60,676 $3,045,736

Key Highlights from Sales Figures

Average Gross Revenue: $510,686

Highest Gross Revenue: $3,045,736

Lowest Gross Revenue: $60,676

Huntington Learning Center Income Statement

Huntington Learning Centers, Inc. Statements of Income and Retained Earnings

Years Ended December 31,2019, 2018 and 2017201920182017
Revenue
Initial franchise and option fees1,126,6511,211,1441,803,812
Continuing franchise fees17,393,16315,965,23414,596,457
Equipment and materials575,270424,799374,664
Totals19,095,11417,601,17716,774,933
Costs and expenses
Franchise sales and administrative expenses9,720,1719,061,9858,802,615
Advertising and promotion859,4631,008,3501,365,316
Allocated general and administrative expenses4,112,1775,642,3814,978,047
Totals14,661,81115,712,71615,145,978
Income from operations4,433,3031,888,4611,628,955
Interest income29,45425,05932,656
Net income4,462,7571,913,4901,661,611
Retained earnings, beginning of year7,334,3966,404,8606,324,473
Less: Cumulative effect of adopting new scouting standard1,010,041
Less: Distributions1,148,742983,9541,581,224
Retained earnings, end of year9,638,3707,334,3966,404,860

Income Statement Key Insights

The company in 2019 posted a positive net income of 4.5 million. This is a large increase from 2018 and 2017 which saw net income of 1.9 million and 1.6 million respectively.

The company was able to earn more from their continuing franchise fees, while also lowering their advertising and administrative expenses.

Competition

The market for tutoring and test prep is developing and is increasing in competition. You will compete with free, for-profit, and not-for-profit businesses that offer services that are the same as or similar to Huntington Services. Some competitors include Mathnasium, The Goddard School, and The Tutoring Center.

huntington learning center franchise

Conclusion

Huntington Learning Center is a well-established that has been around since 1977 and has shown strong revenue figures from their franchisees. The company has 282 franchisee locations and has average revenue of over $500,000!

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the Education Industry.

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