Updated October 4, 2021.
Detailed Estimates of Huntington Learning Center Franchise Costs Based on Item 7 (Estimated Initial Investment) of Huntington Learning Center’s 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $36,000
- This is the amount a New Franchisee pays to the franchisor upon signing the Franchise Agreement.
2. Travel, Living Expenses for Initial Training: $0 to $4,690
- Training-related expenses are for travel, food, and lodging for one person attending the franchisor’s headquarters-based in-person 3-week Franchisee Initial Training (FIT).
3. Curricula and Testing Materials: $19,557 to $20,157
- The franchisor’s Tutoring and Test Prep curricula, eCurricula, and testing materials consist of electronic and non-electronic material (typically books), all of which you must buy or license from the franchisor or third parties before you open.
- This amount consists of required Learning Center curricula totaling $15,893, the Educational Material Start-up Package totaling $3,064, and an adaptive standardized test license totaling between $600 and $1,200.
4. Furniture, Computers: $34,552 to $39,198
- Furniture includes desks, office and student chairs, bookcases, file cabinets, study carrels, and tables, which you buy before you open the Franchised Business. Lower and upper estimates are $21,925 and $25,771 for 1,200 and 1,400 square feet, respectively, excluding tax, delivery, and installation.
- You must buy computers and related items from the franchisor when you sign the Franchise Agreement using the IT Start-up Package. The cost of the IT Start-up Package is $11,427.
- In addition, you must install network wiring and obtain an internet connection from third parties; lower and upper estimates include $1,200 and $2,000, respectively. The higher estimate is for more complex environments, such as with more networked computers.
5. Start-Up Supplies: $3,700 to $5,700
- Start-up supplies consist of office and consumable supplies, forms, marketing materials, student workbooks, appointment books, file folders, paper, pens, etc. You buy some of these items from vendors and some from the franchisor.
6. Advertising: $19,235
- You must spend at least $57,000 per year on advertising. The lower and upper estimates include $14,250, which is $57,000 prorated over three months.
- New Franchisees must buy the Marketing Start-up Package from the franchisor when they sign the Franchise Agreement. Lower and upper estimates include the amount for this package. This start-up package consists of the Marketing Services Start-up Package, Marketing Materials Start-up Package, Marketing Communication Program, and Weekly Client Email Program.
- In addition to spending the minimum advertising requirement, the franchisor recommends you undertake a program of community-based marketing, such as visiting, speaking with, and communicating with school personnel, doctors, psychologists, and merchants.
7. Training and Technology Initial Fee: $6,000
- New Franchisees pay the franchisor this amount when signing the Franchise Agreement. Upon transfer, the buyer pays the franchisor this amount or a greater or lesser amount.
8. Training and Technology Fee: $380
- New Franchisees begin paying this fee in the 3rd full month after the Agreement Date. The amount above is the fee a New Franchisee pays for one month.
- Transfer and Subsequent Franchisees pay the fee that applies to the number of months the business has been open, and begin paying as of the first full month after the Agreement Date.
9. Architect: $0 to $3,200
- An architect designs the Premises and exterior signs based on franchisor, landlord, and municipal requirements.
- Architectural fees depend on many factors, including pre-existing conditions, design requirements, square footage, and zoning requirements. The lower estimate assumes the landlord pays all architectural fees as part of the landlord’s build-out allowance. The upper estimate assumes you pay all architectural fees.
- Your costs may be higher, for example, if you use an expediter or if you need a state-licensed architect to seal the drawings.
10. Security and Utility Deposits; License Fees: $500 to $3,000
- Typically, you give your landlord and utility companies refundable deposits.
- Landlords typically require 2-3 months’ rent, or more, as security.
- The lower amount assumes you give the landlord no security.
- If you obtain any licenses or permits, you may have to pay related fees.
11. Real Estate and Improvements: $0 to $77,000
- Generally, you attempt to negotiate with your landlord concessions for improvements and free rent before signing a lease. If the landlord pays for improvements, you might eliminate or reduce your initial construction costs. However, in return, your rent might be higher.
- The lower estimate assumes the landlord pays for all improvements and gives you the first three months rent‐free. The upper estimate is the product of 1,400 square feet and the estimated per square foot cost of improvements of $55 per square foot.
- Improvement costs depend on many factors, including landlord contributions, size, condition before improvements, extent of improvements, demolition, flooring, walls, painting, doors, windows, ceiling, sprinklers, lights, electricity, heating and air conditioning, plumbing, the presence or absence of interior bathrooms, and many other items.
- Rent depends on many factors, like concessions, your geographic area, size, condition, utilities, and common area maintenance charges.
- Improvement costs and rent also depend on whether you locate in first or second floor retail space or professional space. Rent in first floor retail space is generally higher than in second floor retail space and professional space.
12. Exterior Sign: $500 to $7,500
- Estimates include fabrication, installation, and electrical installation, but do not include taxes, permit fees and other fees (such as design fees), other signs (such as pylons), temporary banners (such as a grand opening banner), and door decals.
13. Interior Graphics: $2,175 to $5,875
- Interior graphics consists of an interior signage package, window posters, lobby plaques, and front door decals. You must buy from the franchisor’s recommended vendor.
14. Professional Fees: $500 to $3,000
- Professionals include attorneys, accountants, and other consultants.
15. Loan Facility Fee: $0 to $4,200
- The franchisor or its affiliate may offer a New Franchisee up to $100,000 to finance their first Franchised Business.
- The lower estimate assumes you do not obtain this financing. The upper estimate assumes you obtain this financing and pay the Lender the nonrefundable loan facility fee, which the Lender deducts from the loan amount.
16. Insurance: $1,625 to $6,500
- This estimates the cost for the franchisor’s minimum required property and liability insurance. The lower estimate assumes you pay the first three months of the annual premium. The upper estimate assumes you pay the entire annual premium.
17. Additional Funds – 3 Months: $22,286 to $24,476
- This estimates the following expenses for a New Franchisee’s first three months of operation: recruitment, cleaning, equipment leasing, repairs, maintenance, postage, credit card fees, loan discount fees, and additional funds of $15,000 for both lower and upper entries.
- It includes $380 for one month’s Training and Technology Fee. (Since the franchisor does not charge you through the end of your second full month of operation for Training and Technology Services, the franchisor includes only one month).
- It includes $2,343, $1,440, and $813 for three months of Call Center service, Virtual Conferencing, and Coaching for both lower and upper estimates, less a credit of $900 for the three months of the Virtual/Coaching Fee (at $300 per month).
18. Total: $147,010 to $266,111