Huntington Learning Center Review
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.
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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 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
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 Types | Amount (in USD) | Method of Payment | When Due | To Whom Payment is to Be Made | |
| Low | High | ||||
| Franchise Fee | $36,000 | $36, 000 | Lump sum | Upon signing FA | Franchisor |
| Travel, living expenses for initial training | 0 | 4,690 | As incurred | Before or During Training | Airlines, hotels, restaurants, etc. |
| Curricula and testing materials | 19,557 | 20,157 | As incurred | Before opening | Vendors and Franchisor |
| Furniture, Computers | 34,552 | 39,198 | As incurred | Before opening | Vendors and Franchisor |
| Start-Up Supplies | 3,700 | 5,700 | As incurred | Before opening | Vendors and Franchisor |
| Advertising | 19,235 | 19,235 | As incurred | As Arranged | Vendors and Franchisor |
| Training and Technology Initial Fee | 6.000 | 6.000 | Lump sum | When you sign the FA | Franchisor |
| Training and Technology Fee | 380 | 380 | Lump sum | Begin 3rd month after the Agreement Date | Franchisor |
| Architect | 0 | 3,200 | As incurred | As Arranged | Vendors |
| Security and utility deposits; license fees | 500 | 3,000 | As incurred | As Arranged | Landlord, utilities |
| Real estate and improvements | 0 | 77,000 | As incurred | Before Opening | Vendors |
| Exterior Sign | 500 | 7,500 | As incurred | Before opening | Vendors |
| Interior Graphics | 2,175 | 5,875 | As incurred | Before opening | Vendors |
| Professional Fees | 500 | 3,000 | As incurred | As Arranged | Vendors |
| Loan Facility Fee | 0 | 4,200 | Deducted from loan amount | Upon disbursement of funds | Lender |
| Insurance | 1,625 | 6,500 | As incurred | As Arranged | Vendors |
| Additional Funds- three months | 22,286 | 24,476 | As incurred | As Arranged | Employees, 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.”
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 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 |
| $510,686 | 79 | 37% | $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 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 |
| $363,155 | 99 | 40% | $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 | |||||
|---|---|---|---|---|---|---|
| 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 | 56% | 129 | 52% | 57% | 125 | 50% |
| Test Prep | 31% | 125 | 50% | 31% | 125 | 50% |
| Subject Tutoring | 8% | 95 | 38% | 7% | 125 | 50% |
| Other | 4% | 134 | 54% | 5% | 125 | 50% |
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 | |||||
|---|---|---|---|---|---|---|
| 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% | 125 | 50% | 58% | 125 | 50% |
| Test Prep | 60% | 139 | 56% | 63% | 125 | 50% |
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 | |||||
|---|---|---|---|---|---|---|
| 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% | 129 | 52% | 62% | 125 | 50% |
| Test Prep | 56% | 136 | 54% | 58% | 125 | 50% |
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 | |||||
|---|---|---|---|---|---|---|
| Service | Average Enroll Rate | Number greater than average | Percent greater than average | Median Enroll Rate | Number greater than median | Percent greater than median |
| Coaching | 72% | 101 | 56% | 75% | 95 | 53% |
| Virtual Conferencing | 81% | 36 | 55% | 83% | 34 | 52% |
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 | |||||
|---|---|---|---|---|---|---|
| Service | Average Enroll Rate | Number greater than average | Percent greater than average | Median Enroll Rate | Number greater than or equal to median | Percent greater than or equal to median |
| Coaching | 80% | 85 | 53% | 83% | 76 | 48% |
| Virtual Conferencing | 84% | 34 | 72% | 100% | 32 | 68% |
Note: Since the Virtual Conferencing’s median is 100%, we present the number greater than or equal to the median.
Table A8
Hourly Tuition : 2020 hourly tuition by service at the Open Franchise Centers
| Average | Median | |||||
|---|---|---|---|---|---|---|
| Service | Average hourly tuition | Number greater than average | Percent greater than average | Median hourly tuition | Number greater than median | Percent greater than median |
| Learning Center | $53 | 113 | 45% | $53 | 125 | 50% |
| Test Prep | $73 | 132 | 53% | $73 | 125 | 50% |
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 | |||||
|---|---|---|---|---|---|---|
| Service | Average LOS | Number greater than average | Percent greater than average | Median LOS | Number greater than median | Percent greater than median |
| Learning Center | 89 | 115 | 46% | 87 | 123 | 49% |
| Test Prep | 45 | 112 | 45% | 43 | 127 | 51% |
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 | |||||
|---|---|---|---|---|---|---|
| Category | Average fee | Number greater than average | Percent greater than average | Median fee | Number greater than median | Percent greater than median |
| Call Center | $781 | 121 | 50% | $774 | 118 | 48% |
| Coaching Services | $271 | 68 | 34% | $205 | 99 | 49% |
| Virtual Conferencing | $480 | 40 | 36% | $300 | 55 | 50% |
Table A11
Premises monthly rent and square footage at the 14 new franchised HLCs that opened during 2020
| Average | Median | |||||
|---|---|---|---|---|---|---|
| Category | Average Rent | Number greater than average | Percent greater than average | Median Rent | Number greater than median | Percent greater than median |
| Rent | $4,110 | 5 | 36% | $3,664 | 7 | 50% |
| Square Footage | 1,588 | 6 | 43% | 1,485 | 7 | 50% |
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 | |||||
|---|---|---|---|---|---|---|
| Category | Average | Number greater than average | Percent greater than average | Median | Number greater than median | Percent greater than median |
| Teacher pay as a percent of revenue | 20.7% | 277 | 58% | 20.7% | 283 | 47% |
| Assistant Director base salary | $34,135 | 11 | 52% | $34,007 | 11 | 52% |
| Center Director base salary | $59,104 | 15 | 54% | $59,868 | 13 | 46% |
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 | Training and Technology Fee |
| Gross Payroll – Teacher Supervisor, Program Administrator | Supplies |
| Gross Payroll – part-time teachers | Professional fees (accounting, legal, etc.) |
| Gross Payroll – any other part-time staff | Telephone & internet service provider |
| Commissions and bonuses | Accounting & payroll expenses |
| Payroll taxes (Employer FICA, FUTA, etc.) | Travel and entertainment |
| Employee benefits | Royalty |
| Advertising (TV, radio, direct mail, print, internet, etc.) | Advertising Fee |
| Payment to Advertising Cooperative Association | Insurance (property, liability, health, etc.) |
| Building (rent, utilities, janitor, maintenance, etc.) | Depreciation and amortization |
| Repairs and maintenance | Debt service |
| Utilities (gas, water, electric) | Training (travel, food, lodging, etc.) & convention |
| Call Center Fees | Taxes, other than payroll |
| Virtual/Coaching Services Fees | Other 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.”
