Huntington Learning Center Franchise in 2024: Costs, Fee & FDD

Looking to invest in a franchise with a strong educational impact? Huntington Learning Center offers a proven model, growing market demand, and solid support. Explore the franchise costs, fees, and potential returns in our detailed analysis!

Last updated 5 Dec 2024 Time 11 min read
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Huntington Learning Center began its journey in 1977 when Eileen and Ray Huntington recognized a gap in the educational system. As a junior high and high school teacher, Eileen saw firsthand how students lacked essential skills to succeed, while Ray, a business analyst and math instructor, envisioned a viable business opportunity. Together, they opened the first Huntington Learning Center in Oradell, New Jersey, creating an innovative model that offered private, individualized tutoring services outside the home—a concept that was groundbreaking at the time. Today, Huntington Learning Center is a leader in the tutoring and test prep industry, driven by its mission to empower students through education.

The franchise offers tailored tutoring programs focusing on reading, writing, math, and study skills, along with standardized test preparation for exams such as the SAT, ACT, and others. Its core customer base comprises parents seeking long-term solutions to enhance their children’s academic success. The company emphasizes a personalized approach, utilizing certified teachers and proprietary curriculum to meet the unique needs of every student. This method ensures that students not only catch up but also build confidence and foundational skills for future success.

Huntington Learning Center has grown into a national brand with approximately 300 locations across 40 states. With its extensive reach, the franchise serves thousands of families daily, making a significant impact on communities. The organization prides itself on its ability to deliver consistent results, highlighted by a proven track record of helping students improve test scores and academic performance.

Franchisees benefit from a robust support system, including comprehensive training programs, ongoing business coaching, and marketing assistance. The family-driven culture, now guided by Anne Huntington Sharma, ensures that franchise owners feel supported while contributing to the company’s mission. This combination of industry expertise, innovative tools, and a strong support network makes Huntington Learning Center an attractive and rewarding franchise opportunity.

Huntington Learning Center Franchise Insights

  1. With over 45 years of experience, Huntington Learning Center has established itself as a pioneer in supplemental education, boasting approximately 300 locations across 40 states.
  2. Students in Huntington programs typically achieve an average increase of 5.4 points on the ACT and 229 points on the SAT, demonstrating the tangible value of its services.
  3. The private tutoring market in the U.S. is projected to grow at a compound annual growth rate (CAGR) of 7.1%, aligning with Huntington’s growth potential in a thriving sector.
  4. Over 98% of parents report satisfaction with the results their children achieve, driving strong referrals and customer loyalty.
  5. Now led by Anne Huntington Sharma, the franchise maintains its family values while fostering innovation and adaptability in the ever-evolving education landscape.

Huntington Learning Center Franchise Key indicators

Growth YOY (%)

-2%

vs industry 2%


Total U.S. Franchised Units

269


3-Year Failure Rate

9%

vs industry 9%


Sales-to-Investment ratio

2.1:1

How much does it cost to open a Huntington Learning Center franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Huntington Learning Center franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Huntington Learning Center franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Huntington Learning Center below from the most recent Item 7 below:

Type of Expenditure  Minimum Investment  Maximum Investment 
Initial Franchise Fee  $36,000  $36,000 
Online Initial Training  $0  $200 
Curricula and Testing Materials  $18,957  $18,957 
Furniture, Computers  $45,162  $45,962 
Start-up Supplies  $3,700  $5,700 
Advertising  $19,295  $19,295 
Training and Technology Initial Fee  $8,000  $8,000 
Architect  $0  $3,200 
Security and Utility Deposits  $500  $3,000 
Real Estate and Improvements  $0  $105,000 
Exterior Sign  $500  $10,000 
Interior Graphics  $2,175  $5,875 
Professional Fees  $500  $3,000 
Insurance  $2,500  $10,000 
Additional Funds (3 Months)  $26,232  $28,022 
Total Estimated Initial Investment  $163,521  $302,211 

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Huntington Learning Center or a similar franchise in the supplemental education industry, it’s important to assess the capital requirements, liquid assets, and net worth needed. Here’s a breakdown based on industry standards and estimates for comparable franchises in this category:

  • Initial Investment Range $164,000 to $302,000 covers expenses like leasing a space, renovations, equipment, initial inventory, and marketing. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
  • Liquid Capital Industry norms suggest liquid assets of $50,000 to $100,000 to ensure you can cover operational costs, initial staffing, and marketing until the business becomes profitable (estimated).
  • Net Worth A typical requirement for educational franchises ranges from $150,000 to $300,000, reflecting the need for financial stability and the ability to support the business through its initial phases.

How much does a Huntington Learning Center franchise owner make?

Calculating the salary of a Huntington Learning Center franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Huntington Learning Center franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Huntington Learning Center Revenue & Gross Sales

Huntington Learning Center’s recent revenue performance underscores its strong position in the supplemental education industry. The median gross sales for its franchise locations reached $477,596. This figure highlights the franchise’s ability to generate consistent revenue while serving a critical need in the market.

Which key factors impact the average revenue performance of Huntington Learning Center franchisees?

The strong performance of Huntington Learning Center’s U.S. franchisee median gross sales likely stems from several key factors. First, the franchise’s reputation for delivering high-quality, results-driven tutoring and test prep services builds trust among parents and drives consistent enrollment. Its tailored approach to education, using certified teachers and a proven curriculum, addresses both immediate academic challenges and long-term skill development, which appeals to a broad audience. Additionally, robust marketing support and brand recognition help franchisees attract a steady flow of clients. Finally, the growing demand for supplemental education, driven by increasing competition in academics and college admissions, positions Huntington Learning Center as a valuable resource for families, contributing to strong financial performance across its franchise network.

Huntington Learning Center Franchise Operational Costs

When opening a Huntington Learning Center franchise, it’s essential to account for the ongoing operational costs specific to running an educational center. These costs are crucial to maintaining high-quality services, supporting staff, and ensuring the center operates efficiently. Here’s a breakdown of the key operational expenses you should plan for:

  • Staff Salaries Hiring and retaining certified teachers, administrators, and support staff to deliver exceptional tutoring services.
  • Facility Costs Rent, utilities, and routine maintenance to ensure the learning environment remains welcoming and functional.
  • Curriculum Materials and Supplies Regularly updating educational materials, software, and testing tools to meet students’ needs.
  • Marketing Expenses Local advertising campaigns, community events, and digital promotions to attract and retain clients.
  • Technology Maintenance Investing in and maintaining technology systems, including proprietary software and hardware used in tutoring sessions.

By planning for these expenses, you can ensure smooth operations and focus on delivering impactful educational services that drive success for your students and business.

Huntington Learning Center Franchise Fees

When considering a Huntington Learning Center franchise, it’s essential to understand the ongoing fees that will be part of your operational costs. These fees support the resources, training, and systems that help you run a successful business while staying aligned with the franchise’s standards. Below is a breakdown of the key fees you should be aware of:

  • Royalty Fee This fee is 9.5% of your center’s gross revenue, with a minimum monthly fee of $2,000. This fee helps fund the support you’ll receive from the franchisor, including operational guidance, system improvements, and business enhancements.
  • Advertising Fund Franchisees contribute 2% of their gross revenue to the advertising fund. This fund is used for national marketing campaigns that increase brand visibility and attract new students to your center.
  • Additional Fees There may be extra costs for training programs, technology upgrades, and other resources provided by Huntington Learning Center.

By understanding these fees, you can effectively plan your financials and make the most of the comprehensive support provided by Huntington Learning Center.

Huntington Learning Center Franchise Earnings

The earnings of a Huntington Learning Center franchise owner can vary depending on factors like location, sales volume, and cost management. Based on the most recent data, the median gross sales for a Huntington Learning Center franchise are approximately $477,596. For owner-operators, the estimated earnings are about $72,000, with an operating profit margin of 15%. This indicates that owner-operators, particularly those who take a hands-on approach to management, can achieve a solid return on investment.

The franchise model allows owners to leverage the brand’s reputation and proven systems, which can significantly enhance earnings when managed efficiently. These figures underscore the opportunity for franchisees to achieve financial success, especially if they are involved in day-to-day operations and cost control.

How to Open a Huntington Learning Center Franchise

Becoming a franchisee for Huntington Learning Center involves a series of steps designed to ensure both you and the franchisor are fully prepared for a successful partnership. From the initial inquiry to the launch of your center, the process is structured to guide you through key phases, ensuring you have the resources and knowledge needed to run your business. Here’s an overview of the typical steps involved:

  1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
  2. Franchise Application After reviewing the initial information, you’ll submit a formal application. This step involves providing personal and financial information to assess whether you meet the necessary qualifications.
  3. Franchise Interview and Approval After reviewing the FDD, you’ll participate in an interview with the franchisor. This step helps ensure that you’re a good fit for the franchise and that you understand the business model.
  4. Signing the Franchise Agreement Upon mutual agreement, you’ll sign the franchise agreement, outlining the terms and conditions of your franchise relationship.
  5. Training Program As a new franchisee, you’ll complete the comprehensive training program, which covers everything from operational procedures to marketing strategies and customer service.
  6. Site Selection and Setup You’ll work with Huntington Learning Center’s support team to choose the right location for your center. Once selected, you’ll build out your space according to the brand’s guidelines.
  7. Pre-Opening Support Before your grand opening, you’ll receive marketing and operational assistance to help set up your center for success.
  8. Launch After training and setup, your center will be ready for operation. The franchisor provides ongoing support to ensure your business runs smoothly from day one.

Pros & Cons

Pros

Proven Business Model: Huntington Learning Center has a long track record of success, with a business model based on high-quality tutoring services that are in demand. Their established brand reputation and systems are key to driving growth.

Growing Market Demand: With increasing competition in the education sector, there is a strong demand for tutoring services, especially those that offer personalized, results-driven solutions for students.

Multiple Revenue Streams: In addition to tutoring services, franchisees can benefit from test prep programs and other educational services, providing several ways to generate income.

National Presence: With approximately 300 locations across the U.S., the franchise offers the strength of a national brand and marketing presence.

Cons

Competitive Market: The tutoring and supplemental learning market is increasingly competitive, with both national chains and independent tutors offering similar services. Standing out among competitors may require additional marketing efforts and strategic differentiation.

Operational Challenges: Managing a center requires handling a wide range of tasks, from hiring and training staff to ensuring customer satisfaction. This can be demanding, particularly for those new to education-related businesses.

Economic Sensitivity: While tutoring services are generally in demand, the education industry can be sensitive to economic downturns. Families may cut back on extracurricular activities like tutoring during financial hardships, which could impact business performance.

FAQs

Who owns Huntington Learning Center?

  • Huntington Learning Center is privately owned by the Huntington family, with Eileen and Ray Huntington having founded it in 1977. Their daughter, Anne Huntington Sharma, is currently the President of the company and plays a key role in overseeing its operations, ensuring that the company continues to evolve while staying true to its educational mission.
  • Yes, Huntington Learning Center is a franchise. Since 1985, the company has expanded its reach through franchising, allowing individuals to open their own centers and operate under the Huntington brand. Franchisees benefit from a proven business model and comprehensive support systems, with locations across the United States.
  • Huntington Learning Center's biggest competitor is Kumon, which also provides supplemental education and tutoring services. Other alternatives include Sylvan Learning, Mathnasium, and various independent tutoring services. These companies offer similar services in academic support and enrichment, often with their own proprietary methods and systems.
  • Whether Huntington Learning Center or Kumon is better depends on individual preferences and needs. Huntington offers individualized tutoring for a range of subjects and test prep, while Kumon focuses on self-learning in math and reading through its worksheets and repetition method. Huntington might be preferable for students needing tailored, one-on-one instruction, while Kumon is ideal for students who thrive in a structured, independent learning environment.
  • The Huntington Learning Center method is a personalized, one-on-one tutoring approach tailored to each student’s unique needs. The process begins with an in-depth evaluation to assess the student’s academic strengths and weaknesses. Then, individualized learning plans are developed, focusing on areas such as reading, math, writing, and test prep, using a combination of in-center and at-home assignments to ensure student success.
  • As of the most recent data, Huntington Learning Center has 275 locations in the U.S., of which 269 are franchised locations.
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