Huntington Learning Center Review (2024)
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 Cost
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 Expediture | Amount |
|---|---|
| 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. |
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 2017 | 2019 | 2018 | 2017 |
|---|---|---|---|
| Revenue | |||
| Initial franchise and option fees | 1,126,651 | 1,211,144 | 1,803,812 |
| Continuing franchise fees | 17,393,163 | 15,965,234 | 14,596,457 |
| Equipment and materials | 575,270 | 424,799 | 374,664 |
| Totals | 19,095,114 | 17,601,177 | 16,774,933 |
| Costs and expenses | |||
| Franchise sales and administrative expenses | 9,720,171 | 9,061,985 | 8,802,615 |
| Advertising and promotion | 859,463 | 1,008,350 | 1,365,316 |
| Allocated general and administrative expenses | 4,112,177 | 5,642,381 | 4,978,047 |
| Totals | 14,661,811 | 15,712,716 | 15,145,978 |
| Income from operations | 4,433,303 | 1,888,461 | 1,628,955 |
| Interest income | 29,454 | 25,059 | 32,656 |
| Net income | 4,462,757 | 1,913,490 | 1,661,611 |
| Retained earnings, beginning of year | 7,334,396 | 6,404,860 | 6,324,473 |
| Less: Cumulative effect of adopting new scouting standard | 1,010,041 | – | – |
| Less: Distributions | 1,148,742 | 983,954 | 1,581,224 |
| Retained earnings, end of year | 9,638,370 | 7,334,396 | 6,404,860 |
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.
