Submit
Feedback

Education Franchise: Huntington Learning Center Review (2021 FDD)

Written by: Patrick Findaro
Last Updated: April 12, 2022
Free Download Our Exclusive Education Programs Guide
Download Now

Source: 2020 Huntington Learning Center Franchise Disclosure Document (FDD)

What is Huntington Learning Center?

 

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.

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.

Initial Franchise Fee

$28,000

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

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

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 RevenueNumber greater tan averagePercent greater than averageLowest Gross RevenueHighest Gross RevenueMedian Gross RevenueNumber greater than medianPercent greater than medianLowest Gross RevenueHighest Gross Revenue
$510,6867937%$60,676$3,045,736$435,07410650%$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 2017

 201920182017
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.

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.

franchise specialist

Latest Articles

KFC Franchise Cost, Requirements, And More! (2022)

KFC Franchise Cost, Requirements, And More! (2022)

Is it easy to start a Waffle House Franchise in 2022?

Is it easy to start a Waffle House Franchise in 2022?

Recover Wingstop Franchise Cost in 6 years (2022)

Recover Wingstop Franchise Cost in 6 years (2022)

Master Franchise Explained

Master Franchise Explained

How to start a Starbucks Franchise in 2022?

How to start a Starbucks Franchise in 2022?

Arby’s Franchise Resale Value Is Low (2022)

Arby’s Franchise Resale Value Is Low (2022)

JAN PRO Franchise Cost Worth Owner Salary? (2022)

JAN PRO Franchise Cost Worth Owner Salary? (2022)

How to Start a Coffee Cart Business in 2022

How to Start a Coffee Cart Business in 2022

Mobile Business Ideas in 2022

Mobile Business Ideas in 2022

How to Start a Painting Business? (2022)

How to Start a Painting Business? (2022)

How to Start a Pressure Washing Business in 2022?

How to Start a Pressure Washing Business in 2022?

Peet’s Coffee Franchise / License Analysis For 2022

Peet’s Coffee Franchise / License Analysis For 2022

Share link

Or

Filters

Business Name

Industry

Investment amount




Downgrade subscription

You are going to downgrade your subscription.This action will proceed the difference in cost of plans and reset subscription period after moneyback.

Vetted Member $79/month

Simple Start Free

Upgrade subscription

You are going to downgrade your subscription.This action will proceed the difference in cost of plans and reset subscription period after moneyback.

Simple Start Free

Vetted Member $79/month

Plan Updated

Your current subscription plan is:

Vetted Member $79/month

Support Form

Please fill out the form below with any technical issues, questions or feedback you might have.

Menu