fbpx
Submit
Feedback

Huntington Learning Center Review

Written by: Brooks Gammill
Last Updated: November 29, 2021
Free Download Our Exclusive Children Programs Guide
Download Now
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 250 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 Huntington 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 Center

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 Franchise

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

Children Learning Center

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

Huntington Learning Center Review

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

Huntington Learning Center Cost

The Huntington Learning Center Franchise cost ranges from $147,010 to $266,111 according to the 2021 FDD.

Huntington Learning Center Franchise

ESTIMATED INITIAL INVESTMENT

Cost TypesAmount (in USD)Method of PaymentWhen DueTo Whom Payment is to Be Made
LowHigh
Franchise Fee$36,000$36, 000Lump sumUpon signing FAFranchisor
Travel, living expenses for initial training04,690As incurredBefore or During TrainingAirlines, hotels, restaurants, etc.
Curricula and testing materials19,55720,157As incurredBefore openingVendors and Franchisor
Furniture, Computers34,55239,198As incurredBefore openingVendors and Franchisor
Start-Up Supplies3,7005,700As incurredBefore openingVendors and Franchisor
Advertising19,23519,235As incurredAs ArrangedVendors and Franchisor
Training and Technology Initial Fee6.0006.000Lump sumWhen you sign the FAFranchisor
Training and Technology Fee380380Lump sumBegin 3rd month after the Agreement DateFranchisor
Architect03,200As incurredAs ArrangedVendors
Security and utility deposits; license fees5003,000As incurredAs ArrangedLandlord, utilities
Real estate and improvements077,000As incurredBefore OpeningVendors
Exterior Sign5007,500As incurredBefore openingVendors
Interior Graphics2,1755,875As incurredBefore openingVendors
Professional Fees5003,000As incurredAs ArrangedVendors
Loan Facility Fee04,200Deducted from loan amountUpon disbursement of fundsLender
Insurance1,6256,500As incurredAs ArrangedVendors
Additional Funds- three months22,28624,476As incurredAs ArrangedEmployees, Vendors
Total $147,010$266,111   

FDD: “You may have additional business expenses starting and operating the Franchised Business. The working capital entry is a recommendation. It is not a representation of the amount you will need; you may need more working capital.”

franchise specialist

Huntington Learning Center Franchise Profit

Table A1

2019 Gross Revenue of the 212 Huntington Learning Centers open all of 2019 under the same franchisee (the “Open Franchise Centers”)

Average    Median    
Average Gross RevenueNumber Greater than 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$435,074 106 50%$60,676 $3,045,736

Table A2

2020 Gross Revenue of the 250 franchised HLCs open all of 2020 under the same franchisee (the “Open Franchise Centers”)

Average    Median    
Average Gross RevenueNumber Greater than AveragePercent Greater than AverageLowest Gross RevenueHighest Gross RevenueMedian Gross RevenueNumber Greater than MedianPercent Greater than MedianLowest Gross RevenueHighest Gross Revenue
$363,1559940%$69,811$2,284,323$312,273 125 50%$69,811$2,284,323
 
 

Table A3

Sales by Service: 2020 percent of sales to Gross Revenue by service for the Open Franchise Centers

 Average  Median  
ServiceAverage ratio of this service’s sales to Gross RevenueNumber greater than averagePercent greater than averageMedian ratio of this service’s sales to Gross RevenueNumber greater than medianPercent greater than median
Learning Center56%12952%57%12550%
Test Prep31%12550%31%12550%
Subject Tutoring8%9538%7%12550%
Other4%13454%5%12550%

Percents may not total to 100% due to rounding. Other sales consist of Academic Evaluation fees, registration fees, and miscellaneous sales.

Table A4

AE Rates : 2020 Academic Evaluation Rate by service for the Open Franchise Centers

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

 Average  Median  
ServiceAverage AE RateNumber greater than averagePercent greater than averageMedian AE RateNumber greater than medianPercent greater than median
Learning Center58%12550%58%12550%
Test Prep60%13956%63%12550%

Table A5

Enroll Rates : 2020 Enroll Rates by service at the Open Franchise Centers

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

 Average  Median  
ServiceAverage Enroll RateNumber greater than averagePercent greater than averageMedian Enroll RateNumber greater than medianPercent greater than median
Learning Center61%12952%62%12550%
Test Prep56%13654%58%12550%

 

Table A6

2020 LC Enroll Rates for HLCs that used Coaching or Virtual Conferencing

During 2020, 180 HLCs used Coaching and 66 HLCs used Virtual Conferencing.

 Average  Median  
ServiceAverage Enroll RateNumber greater than averagePercent greater than averageMedian Enroll RateNumber greater than medianPercent greater than median
Coaching72%10156%75%9553%
Virtual Conferencing81%3655%83%3452%


Table A7

2020 EP Enroll Rates for HLCs that used Coaching or Virtual Conferencing

During 2020, 159 HLCs used Coaching and 47 HLCs used Virtual Conferencing.

 Average  Median  
ServiceAverage Enroll RateNumber greater than averagePercent greater than averageMedian Enroll RateNumber greater than or equal to medianPercent greater than or equal to median
Coaching80%8553%83%7648%
Virtual Conferencing84%3472%100%3268%

Note: Since the Virtual Conferencing’s median is 100%, we present the number greater than or equal to the median.

franchise specialist

Table A8

Hourly Tuition : 2020 hourly tuition by service at the Open Franchise Centers

 Average  Median  
ServiceAverage hourly tuitionNumber greater than averagePercent greater than averageMedian hourly tuitionNumber greater than medianPercent greater than median
Learning Center$5311345%$5312550%
Test Prep$7313253%$7312550%

Table A9

Length of Stay : 2020 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  
ServiceAverage LOSNumber greater than averagePercent greater than averageMedian LOSNumber greater than medianPercent greater than median
Learning Center8911546%8712349%
Test Prep4511245%4312751%

Table A10

Average Monthly Fees Paid for Call Center Services, Coaching Services, and Virtual Conferencing Services in 2020

During 2020, 244 franchised HLCs used the Call Center, 203 used Coaching, and 111 used Virtual Conferencing.

 Average  Median  
CategoryAverage feeNumber greater than averagePercent greater than averageMedian feeNumber greater than medianPercent greater than median
Call Center$78112150%$77411848%
Coaching Services$2716834%$2059949%
Virtual Conferencing$4804036%$3005550%

Table A11

Premises monthly rent and square footage at the 14 new franchised HLCs that opened during 2020

 Average  Median  
CategoryAverage RentNumber greater than averagePercent greater than averageMedian RentNumber greater than medianPercent greater than median
Rent$4,110536%$3,664750%
Square Footage1,588643%1,485750%

During 2020, franchisees signed or negotiated leases for 14 new franchised HLCs in the following states: DC, FL, GA, IL, NJ, NY, TN, TX, VA, WA. Rent is the first year’s base rent and common area maintenance charges. Generally, rent increases in subsequent years due to negotiated rent increases and increases in common area maintenance charges.

Company Owned

 

2020 salaries at the 19 Company-Owned Centers open all or part of 2020

This table presents information about 2020 salaries (excluding bonus, taxes, and benefits) for those employed by these centers. In 2020, Company-Owned Centers employed 791 teachers, 28 Center Directors, and 21 Assistant Directors.

 Average  Median  
CategoryAverageNumber greater than averagePercent greater than averageMedianNumber greater than medianPercent greater than median
Teacher pay as a percent of revenue20.7%27758%20.7%28347%
Assistant Director base salary$34,1351152%$34,0071152%
Center Director base salary$59,1041554%$59,8681346%

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 – FranchiseeTraining and Technology Fee
Gross Payroll – Teacher Supervisor, Program AdministratorSupplies
Gross Payroll – part-time teachersProfessional fees (accounting, legal, etc.)
Gross Payroll – any other part-time staffTelephone & internet service provider
Commissions and bonusesAccounting & payroll expenses
Payroll taxes (Employer FICA, FUTA, etc.)Travel and entertainment
Employee benefitsRoyalty
Advertising (TV, radio, direct mail, print, internet, etc.)Advertising Fee
Payment to Advertising Cooperative AssociationInsurance (property, liability, health, etc.)
Building (rent, utilities, janitor, maintenance, etc.)Depreciation and amortization
Repairs and maintenanceDebt service
Utilities (gas, water, electric)Training (travel, food, lodging, etc.) & convention
Call Center FeesTaxes, other than payroll
Virtual/Coaching Services FeesOther expenses

FDD Disclosure:

“Revenue, Academic Evaluation Rates, Enrollment Rates, Length of Stay, and other key operating statistics vary widely among franchised HLCs and depend on many factors, like quality of customer service, timeliness of the Academic Evaluation and enrollment conference and the quality of these experiences, quality of your instruction and customer service, and other factors. Some outlets were able to obtain the results in this Item 19. Your individual results may differ. There is no assurance that you will obtain these results results.

Franchised HLCs 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 HLCs 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.

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.”

How about listening to this article in Podcast format?
Check it out! Click and stay tuned!

Franchise Findings Podcast

Franchise Findings Apple Podcast

franchise specialist

Latest Articles

Your CBD Store Franchise

Your CBD Store Franchise

Wahlburgers’ Franchise Opportunities

Wahlburgers’ Franchise Opportunities

Burger King Franchise Revenue of $1M+ worth the high Franchise Cost?

Burger King Franchise Revenue of $1M+ worth the high Franchise Cost?

Firehouse Subs Franchise Cost Worth Opening One?

Firehouse Subs Franchise Cost Worth Opening One?

Huntington Learning Center Review

Huntington Learning Center Review

Submit Feedback