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.

Franchise Costs: Detailed Estimates of Sylvan Learning Center Franchise Costs (2014 FDD)

by Franchise Chatter on September 11, 2014

in Child-Related Franchises, Education Franchise, Franchise Costs



Franchise Chatter Membership Information

Franchise Chatter Names America's Most Lucrative Franchises

Sylvan Learning Photo by socialwoodlands

Detailed Estimates of Sylvan Learning Franchise Costs Based on Item 7 (Estimated Initial Investment) of Sylvan Learning’s 2014 Franchise Disclosure Document

For Territory A Centers

  • Sylvan determines whether a particular Center is a Territory A or Territory B Center based upon its evaluation of such factors as the number of school-aged children who reside within a territory; the geographic size, population, and socio-economic factors of any territory; and such other financial and market factors as it may deem pertinent.

1.  Initial License Fee:  $48,000

2.  Travel and Living Expenses While Attending Training:  $2,850 to $4,050

  • The estimate for travel, food, and lodging for initial Sylvan training assumes two people; a travel cost of between $200 and $800 round-trip per person to and from Sylvan’s facilities in Baltimore, Maryland; $300 per day for lodging for two people; and $25 per day for each person for meals for 7 days during initial training.
  • For a third person to attend training, you would need to allow an additional $510 to $1,110 for expenses.

3.  Initial Six Months’ Rent and Security Deposit:  $9,000 to $48,000

  • If you do not own adequate space, you must buy or lease space for your Center. Strip malls are the typical locations for Centers. A Territory A Center is typically about 1,800 to 2,400 square feet and a Territory B Center is typically about 1,500 to 2,200 square feet.
  • The amount of rent that you pay will vary greatly depending on your geographic location, the type of location in which your Center is located, the size of your Center, and general economic conditions, among other factors.

4.  Real Estate Improvements and Site Preparation:  $10,000 to $55,000

  • The costs of improving your lease site for your Center are negotiated with the landlord as part of your negotiating your lease. If the landlord provides the improvements at its cost and those costs are financed as part of the lease, you will substantially reduce your initial costs, but your monthly rentals will likely be higher.

5.  Initial Inventory of Sylvan Learning Materials:  $14,250

  • This amount may change from time to time throughout the year.
  • The amounts do not include all shipping costs and taxes, which must be paid by you. Depending on your location and applicable state taxes, your shipping costs should be between approximately $200 and $500, and your taxes will vary.
  • At the end of your first year of operations, you will be required to purchase additional Learning Materials for an additional cost.

6.  Initial Instructional Materials from Third Parties:  $150 to $200

7.  Specialized Furnishings:  $12,000 to $14,000

  • You must purchase certain specialized furnishings for your Center that meet Sylvan’s specifications. You may purchase these from any vendor that can produce furnishings that meet Sylvan’s specifications.
  • You are responsible for shipping costs and the set-up and installation of the specialized furnishings.

8.  Other Furniture and Miscellaneous Supplies:  $10,000 to $12,000

9.  Signage:  $4,000 to $8,000

10.  Computers, Copier, Printers, Facsimile, Telephone, Internet Access, and Software:  $8,600 to $11,000

  • The estimated costs indicated include the costs for three to five computer workstations with operating software at $1,200 each, $2,000 for a printer (combined or separate), and internet and telephony services for 12 months at $250 per month.
  • Sylvan provides certain of the equipment at no additional cost to you.
  • Computers and other equipment may often be leased over several years. Equipment leases typically require you to pay approximately 10% of the “purchase” price at the outset. To the extent that you are able to lease your equipment, you will substantially reduce your initial costs.

11.  Additional Funds – Six Months:  $48,000

  • These expenses include business licenses, utility deposits, payroll costs, and required insurance. These figures do not include payroll for the owner.
  • These figures are estimates and Sylvan cannot guarantee that you will not have additional expenses starting the business.
  • Sylvan recommends that in addition to the capital you estimate you will need to reach break-even point in your operations, you should have available sufficient capital as a contingency to fund the business for a full year.

12.  Total:  $166,850 to $262,500 (figures do not include additional rent)

For Territory B Centers

1.  Initial License Fee:  $42,000

2.  Travel and Living Expenses While Attending Training:  $2,850 to $4,050

3.  Initial Six Months’ Rent and Security Deposit:  $7,500 to $44,000

4.  Real Estate Improvements and Site Preparation:  $10,000 to $55,000

5.  Initial Inventory of Sylvan Learning Materials:  $14,250

6.  Initial Instructional Materials from Third Parties:  $150 to $200

7.  Specialized Furnishings:  $7,450 to $8,400

8.  Other Furniture and Miscellaneous Supplies:  Approximately $10,000

9.  Signage:  $4,000 to $8,000

10.  Computers, Copier, Printers, Facsimile, Telephone, Internet Access, and Software:  $8,600 to $11,000

11.  Additional Funds – Six Months:  $40,000

12.  Total:  $146,800 to $236,900 (figures do not include additional rent)




Franchise Matching Quiz

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: