Published on 21 Apr 2021 Time 10 min read Last update by 6 May 2024

Huntington Learning Center

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Huntington Learning Center

The Huntington Learning Center is a family owned and managed education and learning concept established in 1977.

Huntington Learning Center is the leading franchise in the education and tutoring industry. For almost 40 years, they have helped students reach their academic goals through tailored tutoring programs that fit their unique academic needs and schedules.

The Huntington Learning Center started franchising in 1985 and today operate over 240 centers in 39 states from coast to coast.

They offer help to all types of students and subjects; grades K-12, college prep exams, GED programs, military & ivy league entrance exam preps. They cover the main academic skills; reading, writing, study skills, math, phonics, spelling, and vocabulary as well as specific tutoring subjects like; pre-algebra, algebra, geometry, trigonometry, pre-calculus, calculus, earth science, biology, chemistry, physics, and more. On average after three months of tutoring, students have increased 2 grade levels in reading and math, increased their ACT scores by 4 points and 200+ point on the SAT

Huntington learning

Educational Management

Huntington Learning Center was founded by Dr. Raymond J. Huntington and his wife Mrs. Eileen C. Huntington. Huntington Learning Center has always been and will continue being a family owned and operated business. Their daughter Eileen Huntington is now currently very active in the operations of the business and has a leadership role in the company. Mrs. Huntington started out as a junior high and high school teacher in New York City and New Jersey public schools. They opened up their first Huntington Learning Center after noticing that many of her students had difficulty with basic writing, reading, or math skills.

Huntington Learning Center has countless recognitions and awards. In 2016, it was on Entrepreneur’s Top 500 Fastest Growing Franchise. In 2017, it was part of Entrepreneur’s Top 500 Franchises. In 2016 and 2017, it made the Top 50 Satisfaction Franchisee Awards. And finally, in 2017, it made the list of Top Franchises for Women.

The company is also lead by a very experienced and supportive educational management team that helps and trains franchisees so that they have all of the tools to success at their disposal.


They offer strong support with everything from site location to hiring personnel and training.


Franchise Children Program Industry Analysis 

Strengths 

  • Currently regarded as the leader in this educational / tutoring space.
  • Relatively low investment level.
  • Management team provides strong training and support.
  • Necessary in all regions and school districts of the U.S.

Weaknesses 

  • Need to find instructors, typically teachers or retired teachers, with the right “fit” for the program.
  • Need to have the right type of mindset to in order to establish relationships and bring in new customers.
  • Heavily reliant on the owner-operator to sell the services to parents and their kids.

Opportunities 

  • Tutoring courses are increasingly sought after as the importance of academic success increases in demand.
  • Large opportunity – $5-$7 billion a year tutoring industry that is continuing to grow as college admission becomes increasingly competitive.
  • Territories available all over the U.S.

Threats  

  • Inability to continue to adapt to the ever-changing educational new best-practices and landscape.
  • Other “outside of the classroom” educational programs entering your school.
  • Possibility to compete directly with school sponsored programs.


How much is a Huntingnton Learning Center Franchise?

Huntington Learning Center Franchise cost ranges from $127,060 to $268,940 according to the 2020FDD.

Huntingnton Learning Center Franchise

Cost Types Amount (in USD) When Due To Whom Payment is to Be Made
Low High
Franchise Fee $28.000 $28.000 Upon signing FA Franchisor
Travel, living expenses while training 0 4.690 Before or During Training Airlines, hotels, restaurants, etc.
Curricula and testing materials 18.485 18.910 As Arranged Vendors and Franchisor
Furniture, Computers 32.109 32.909  As Arranged Vendors and Franchisor
Start-Up Supplies  4.000 8.000 As Arranged Vendors
Advertising 14.446  16.946  As Arranged Vendors and Franchisor
Training and Technology Initial Fee 6.000 6.000 When you sign the FA Franchisor
Training and Technology Fee 380 380 Beginning 3rd month after signing FA Franchisor
Architect Design 0 5.500 As Arranged Vendors
Security and utility deposits; license fees 500 3.000 As Arranged Landlord, utilities
Real estate and improvements 0 77.000 Before Opening Vendors
Exterior Signs 500 7.000 As Arranged Vendors
Interior Graphics  2.515 6.905 As Arranged Vendors
Professional Fees 500 3.000 As Arranged Vendors
Loan Facility Fee 0 4.200 As Arranged Vendors
Insurance 1.625 6.500 As Arranged Vendors
Additional Funds- three months 18.000 40.000 As Arranged Employees, Vendors
Total  $ 127,060 $ 268,940
Royalty Ad-Fund
9,5% 2%

How much does a  Huntington Learning Center Franchise make?

2018 Gross Revenue of the 212 Huntington Learning Centers open all of 2018 under the same franchisee (the “Open Franchise Centers”)

Average Median
Average Gross Revenue Number Greater than 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
$500.386 82 39% $51.107 $3.001.031 $429.158  106  50% $51.107  $3.001.031

2018 Gross Revenue of the 178 Open Franchise Centers open more than three years

Average Median
Average Gross Revenue Number Greater than 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
$545.240 70 39% $128.311 $3.001.031 $472.848  89  50% $128.311 $3.001.031

Sales by Service : 2018 percent of sales to Gross Revenue by service for the Open Franchise Centers

Average Median
Service Average ratio of this service’s sales to Gross Revenue Number greater than average Percent greater than average Median ratio of this service’s sales to Gross Revenue Number greater than median Percent greater than median
Learning Center 53% 105 50% 53% 106 50%
Test Prep 31% 101 48% 30% 106 50%
Subject Tutoring 8% 88 42% 7% 106 50%
Other 8% 99 47% 8% 106 50%

Percents may not total to 100% due to rounding.

AE Conversion Rates : 2018 Academic Evalutation Rate by Service for the Open Franchise Center

“Academic Evaluation Rate” or “AE Rate” is the ratio of the number of Academic Evaluations (AE) to the number of inquiries.

Average Median
Service Average AE Rate Number greater than average Percent greater than average Median AE Rate Number greater than median Percent greater than median
Learning Center 58% 96 45% 57% 106 50%
Test Prep 63% 119 56% 64% 106 50%

Enroll Conversion Rates : 2018 Enroll Rate by service at the Open Franchise Centers

“Enroll Rate” is the ratio of the number of enrollments to the number of AEs.

Average Median
Service Average Enroll Rate Number greater than average Percent greater than average Median AE Rate Number greater than median Percent greater than median
Learning Center 61% 113 53% 62% 106 50%
Test Prep 62% 129 61% 65% 106 50%

Hourly Tuition : 2018 hourly tuition by service at the Open Franchise Centers

Average Median
Service Average hourly tuition Number greater than average Percent greater than average Median Enroll Rate Number greater than median Percent greater than median
Learning Center $52 91 43% $51 106 50%
Test Prep $72 109 51% $72 106 50%

Length of Stay : 2018 Length of Stay by service at the Open Franchise Centers

“Length of Stay” or “LOS” is the number of hours a student uses before ceasing instruction.

Average Median
Service Average LOS Number greater than average Percent greater than average Median LOS Number greater than median Percent greater than median
Learning Center 93 100 47% 91 105 50%
Test Prep 40 104 49% 40 106 50%

Premises Rent Square Footage at the 23 new franchised Huntington Learning Centers

Average Median
Category Average Rent Number greater than average Percent greater than average Median Rent Number greater than median Percent greater than median
Rent $4.270 11 48% $3.438 11 48%
Square Footage 1662 10 43% 1628 11 48%

During 2018, franchisees signed or negotiated leases for 23 new franchised Huntington Learning Centers in the following states: CA, IL, IN, KY, MD, MI, NC, NV, OH, SC, TX, UT, VA and WA. Rent is the first year’s base rent and common area maintenance charges. Generally, rent increases in subsequent years due to negotiated rent inceases and increases in common area maintenance charges.

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Average Monthly Fees Pail for Call Center and Coaching Services 2018

During 2018, 211 franchised Huntington Learning Centers used the call center and 181 used Coaching Services.

Average Median
Category Average Fee Number greater than average Percent greater than average Median Fee Number greater than median Percent greater than median
Call Center $955 87 41% $918 96 45%
Coaching Services $402 59 33% $334 88 49%

Company Owned

2018 Gross Revenue of the 34 Company Owned Centers open all of 2018 (the “Open Corporate Centers”)

Average Median
Average Gross Revenue Number Greater than 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
$827.358 15 44% $428.337 $1.674.885 $773.251  17  50% $428.337  $1.674.885

Sales by Service : 2018 percent of sales to Gross Revenue by service for the Open Corporate Centers

Average Median
Service Average ratio of this service’s sales to Gross Revenue Number greater than average Percent greater than average Median ratio of this service’s sales to Gross Revenue Number greater than median Percent greater than median
Learning Center 58% 18 53% 61% 17 50%
Test Prep 28% 17 50% 28% 17 50%
Subject Tutoring 8% 13 38% 7% 17 50%
Other 6% 19 56% 8% 17 50%

AE Conversion Rates : 2018 Academic Evalutation Rate by Service for the Open Corporate Centers

“Academic Evaluation Rate” or “AE Rate” is the ratio of the number of Academic Evaluations (AE) to the number of inquiries.

Average Median
Service Average AE Rate Number greater than average Percent greater than average Median AE Rate Number greater than median Percent greater than median
Learning Center 56% 19 56% 57% 17 50%
Test Prep 62% 19 56% 64% 17 50%

Enroll Conversion Rates: 2018 Enroll Rate by service at the Open Corporate Centers

“Enroll Rate” is the ratio of the number of enrollments to the number of AEs.

Average Median
Service Average Enroll Rate Number greater than average Percent greater than average Median Enroll Rate Number greater than median Percent greater than median
Learning Center 61% 17 50% 60% 17 50%
Test Prep 67% 19 56% 68% 17 50%

Hourly Tuition : 2018 hourly tuition by service at the Open Corporate Centers

Average Median
Service Average hourly tuition Number greater than average Percent greater than average Median Enroll Rate Number greater than median Percent greater than median
Learning Center $61 11 32% $60 17 50%
Test Prep $85 14 41% $85 17 50%

Length of Stay : 2018 Length of Stay by service at the Open Corporate Centers

“Length of Stay” or “LOS” is the number of hours a student uses before ceasing instruction.

Average Median
Service Average LOS Number greater than average Percent greater than average Median LOS Number greater than median Percent greater than median
Learning Center 92 15 44% 88 17 50%
Test Prep 41 15 44% 40 17 50%

2018 Salaries at the Open Corporate Centers

This information is from Company Owned Center 2018 payroll and excludes taxes and benefits. In 2018, Company Owned Centers employes 1,373 teachers and 56 Assistant Directors.

Average Median
Category Average Pay Number greater than average Percent greater than average Median Pay Number greater than median Percent greater than median
Teacher hourly pay $14,05 493 36% $14 506 37%
Assistant Director base salary $33.585 13 23% $33.010 13 23%
Center Director base salary $58.618 21 46% $57.200 23 50%

Expense Items on end-of-year P&L statement

Expenses Listed on the End-of-Year P&L Statement that Franchisees Must Submit to Franchisor.

Gross Payroll – franchisee Supplies
Gross Payroll – Teacher Supervisor, Program Administrator Professional Fees (accounting, legal, etc.)
Gross Payroll – part-time teachers Telephone
Other Gross Payroll – any other part-time staff Travel and entertainment
Payroll Taces (Employer FICA, FUTA, etc.) Royalty
Employee Benefits Advertising Fee
Advertising (TV, radio, direct mail, print, internet, etc.) Insurance (property, liability, health, etc.)
Payment to Advertising Cooperative Association Depreciation and amortization
Building (rent, utilities, janiotr, maintenance, etc.)
Depreciation and amortization
Repairs and maintnance Debt service
Call Center Fees Training (travel, food, lodging, etc.)
Coaching Services Fees Taxes, other than payroll
Other expenses

FDD Disclosure

FDD Disclosure: “Not all franchised Huntington Learning Centers achieved these average sales, expenses, or operating results. There is no assurance you will do as well. If you rely on our figures, you must accept the risk of not doing as well. Sales and operating results likely will be lower for New and Transfer Franchisees and their expenses likely will be higher.

Franchised Huntington Learning Centers differ from each other in many important ways, including their market area and geographic location and the number of children and population contained thereabout and the economic and financial circumstances of this population. The economic and demographic factors that exist at and about the Franchised Business likely will not remain constant. Franchised Huntington Learning Centers also differ from each other in their physical, marketing, employee, and owner’s and Manager’s characteristics and in many other factors that may or may not exist or be similar to the factors that exist at your Franchised Business or in any other location or geographic area or market area that you may consider.

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Most of the Open Franchise Centers offered Test Prep Service during 2018. All of the Open Company Centers offered Test Prep Service during 2018.

You should conduct an independent investigation of the costs and expenses you will incur in operating the Franchised Business. We encourage you to contact our current and former franchisees, who are listed in Exhibit G, and to consult with financial, business, and legal advisors about this Item 19.”

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