Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

FDD Talk Daily (Children’s Franchises): Average Enrollment Value of Tutor Doctor Businesses in the United States and Canada

by Franchise Chatter on March 23, 2013

in Child-Related Franchises,Education Franchise,Franchise Earnings

Franchise Chatter Membership Information

This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Tutor Doctor’s Item 19 Financial Performance Representations (2012 FDD)

  • The franchise offered is for the operation of a business under the name “Tutor Doctor” which offers affordable tutoring and online services at a student’s home. This franchise system or platform offers an effective alternative to students and parents who prefer to receive tutoring help in their own home instead of traveling to a learning center.
  • The total investment necessary to begin operation of a Tutor Doctor franchised business is $67,500 to $170,000. This includes between $43,700 to $131,700 that must be paid to the franchisor and/or its affiliate, as appropriate.
  • Tutor Doctor currently offers five types of franchises: (a) a Local Territory Franchise is $39,700; (b) a Regional Territory Franchise is $44,700; (c) a National Territory Franchise is $54,700; (d) a Multinational Territory Franchise is $87,700; and (e) an International Territory Franchise is $127,700.

Average Enrollment Value of Tutor Doctor Businesses

  • The following information is based on the experience of both Tutor Doctor’s corporate location and its U.S. and Canadian franchisees for the period of February 1, 2011 to July 31, 2012.
  • Tutor Doctor Photo by Bottlecap NapkinThere were 115 franchisees in the United States and 55 franchisees in Canada who were operational during this entire period. Of these franchisees, there were 29 in the United States and 11 in Canada who were not included in the results because they did not adequately report information to the company.
  • For every 10 assessments completed on average (in which the child’s proficiency is assessed by the franchise manager), the corporate location has net approximately 7 student enrollments.
  • The company does not currently require that you charge a certain minimum or maximum tutoring fee for your customers (although it reserves the right in the future to set maximum prices), so you may charge as much as you would like.
  • Hourly rate – This is the rate which the company charges families for in-home tutoring services. Typically, the company charges between $44 and $54 per hour.
  • The hourly rate will fluctuate depending upon the program that the student enrolls in, which is determined by a block of tutoring hours purchased. For example, a 12-hour program would be billed at $54/hour and a 96-hour program would be billed at $44/hour.
  • For purposes of this document, the company took the total revenues generated and divided it by the number of hours of tutoring sold to come up with the average hourly rate.
  • Tutoring costs are approximately 45% of tutoring revenues generated by the corporate location.
  • Tutoring costs refer to the amount paid to tutors who deliver the tutoring experience at home. The company took the average hourly rate paid to its tutors ($19.50/hour) and divided that by the average hourly rate charged to families ($43/hour) to come up with this percentage.

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