Huntington Learning Center
Huntington Learning Center offers in-person tutoring and test prep services to school-aged students from a brick-and-mortar location. Known for academic support, it operates within the educational services franchise sector.
Huntington Learning Center franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one franchise is $104,707 if no additional franchises are acquired initially [p.15]. This amount includes the initial franchise fee, training and technology initial fee, kick start marketing program, and startup package [p.16].
What is the initial franchise fee?
The initial franchise fee is $42,000 [p.14]. However, if a New Franchisee acquires more than one franchise initially, the second and subsequent franchises are discounted to $27,000 each [p.15]. This isn't specified in the excerpts for other scenarios.
What are the ongoing royalty and advertising fees?
The ongoing minimum royalty is $2,000 per month, and the minimum Huntington Advertising Fund Fee is $500 per month, both of which are nonrefundable and must be paid each month during the term [p.103]. These payments are required regardless of sales levels [p.5].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
The sale or transfer of your franchise is subject to certain conditions. For a convenience transfer within 90 days of the Agreement Date, you can typically waive the Transfer Fee, Initial Franchise Fee, and Training and Technology Initial Fee [p.147]. However, any transferee must become a Guarantor and agree to be bound by the terms of the franchise agreement [p.147]. This isn't specified in the excerpts for regular transfers outside these conditions.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement on any grounds available by law, as stated on [p.295].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you will receive an Exclusive Area if you are a New Franchisee, which is typically a circular geographic area centered on your Premises with a radius between zero and three miles. This area may be adjusted based on factors such as metropolitan areas or low-income regions [p.39]. Transfer or Subsequent Franchisees already have their Premises within an Exclusive Area or Territory [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides unlimited initial training for part- and full-time employees [p.32] and offers online training through their Online Training Facility, providing two seat licenses to franchisees [p.109]. Additionally, they offer a Kick Start Marketing Program to help new or transferring HLCs with marketing efforts [p.143], though this program's success is not guaranteed. The franchisor also requires the franchisee to develop and provide a management plan acceptable to them for any amendments, but this does not obligate the franchisor to offer an amendment [p.254].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information based on actual records of existing outlets you are considering buying [p.52]. However, other than this, no financial performance representations are made, and employees or representatives are not authorized to make such representations either orally or in writing [p.55].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items; however, you must buy or license advertising materials, media, digital advertising, direct mail advertising, testing material, curricula, eCurricula, and accounting and payroll software from Designated Vendors as per [p.26]. For start-up supplies like office and consumable supplies, forms, student workbooks, file folders, paper, pens, etc., you can buy from any vendor if you comply with the standards set by the franchisor, though there are costs associated with securing approval for alternative suppliers [p.23].