Huntington Learning Center
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
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?
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 | ||
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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.
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.
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.”
