In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Huntington Learning Center franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Huntington Learning Center franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Huntington Learning Center’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average annual sales for the 155 franchised Huntington Learning Centers open during each of the three years, 2012, 2013, and 2014
- 2014 average annual sales for the 196 franchised Huntington Learning Centers open during all of 2014
Section I – Background Information
Huntington Learning Center continues to make it easier for potential franchisees to own their own businesses.
CEO and co-founder Eileen Huntington, profiled in an article in Entrepreneur magazine’s annual Franchise 500 issue in January 2015, pointed out that the tutoring and test prep company had made a number of changes to its business model, such as lower franchise fees, smaller stores, and online training so franchisees don’t have to travel for training.
In the new business model, a franchisee can open a location for as little as $100,000 and can run the business on a part-time basis. The company hopes the terms will provide more opportunities for teachers and military veterans to own businesses.
The company’s new in-house financing plan will provide loans of as much as $100,000, at a 5 percent interest rate, to qualified borrowers for 60 months, with no payments due for six months.
Huntington, one of three CEOs featured in the Entrepreneur article titled “3 Women to Watch in the Franchising Sector,” also highlighted a new technology system for franchisees, the eCenter, which integrates curriculum with administrative functions such as scheduling and student information.
Huntington Learning Center was ranked No. 301 in Entrepreneur magazine’s Franchise 500 list for 2015, up 10 spots from its 2014 ranking of 311.
Couple Saw a Need for Tutoring
Huntington and her husband, Raymond, the company’s chairman, founded Huntington Learning Center in 1977 in Oradell, New Jersey. Both educators, they saw a need for high-quality tutoring. They opened a second center the following year and began expanding into the New York and Philadelphia metro areas. The couple started franchising in 1985.
The Huntingtons still run the company, which remains headquartered in Oradell and has more than 260 centers nationwide.
The company provides instruction for students ranging from kindergarten to college in reading, math and study skills, along with spelling, phonics, writing, vocabulary, geometry, algebra and preparation for the SAT, ACT and other exams.
New Test Prep for New SAT
Huntington Learning Center announced in March 2015 that it will have a new test prep program for the redesigned SAT, which will officially launch in March 2016. The company has analyzed the SAT to determine key changes and created a curriculum to incorporate these changes into its test prep program.
Jim Emmerson, CFO of Huntington Learning Center, earned the CFO Success-Strategy Award in May 2015 at the CFO Innovation Conference. The award honors strategic initiatives that enhance value, operations, financial performance and/or realignment.
The event, held at Metlife Stadium in East Rutherford, N.J., was hosted by CFO Studio, which honored 11 CFOs.
Huntington Learning Center announced in June 2014 that it was seeking franchisees within the Dallas market, where it has had a presence since 2000. Particular interest was in the communities of Burelson, Cedar Hill, Cleburne, De Soto, Decatur, Rockwall, Denton, Euless, Flower Mound, Fort Worth, Frisco, Garland, Granbury, Hurst, Irving, Keller, McKinney, Mesquite, Paris, Plano, Southlake, Waxahachie and Weatherford.
Section II – Estimated Costs
- Please click here for detailed estimates of Huntington Learning Center franchise costs, based on Item 7 of the company’s 2015 FDD.