Considering a Huntington Learning Center Franchise? Don’t Overlook These 36 Important Franchise Fees

Updated November 3, 2019.

If you are considering a Huntington Learning Center franchise, don’t get blindsided by these 36 important franchise fees (from the initial franchise fee, to the royalty fee, to 34 other fees found in Items 5 and 6 of Huntington Learning Center’s 2019 FDD).

1.  Initial Franchise Fee:  $28,000

• The initial franchise fee is $28,000, which you pay to Huntington when you sign the Franchise Agreement.

• Huntington participates in the International Franchise Association’s VetFran Program. If one of your Owners is a veteran honorably discharged from the U.S. Armed Forces or on active duty in the U.S. Armed Forces on the Agreement Date, Huntington will reduce the initial franchise fee for your first new or transfer franchise by 25%, providing that Owner owns at least 10% of the Franchisee.

2.  Development Agreement:  $24,000 multiplied by the number of franchised Huntington Learning Centers you agree to develop

• If you sign a Development Agreement, you will sign a separate Franchise Agreement for each Franchised Business you develop under it. The Initial Franchise Fee for Franchise Agreements signed under a Development Agreement will be reduced to $24,000. When you sign a Development Agreement, you pay all of the Initial Franchise Fees in full for each center you commit to open.

• If you are in full compliance with the Development Agreement, Huntington will credit the Initial Franchise Fee you paid when you signed the Development Agreement to the Initial Franchise Fee payable under each Franchise Agreement.

3.  Loan Program:  non-refundable loan facility fee of $4,200

• New Franchisees can borrow up to $100,000 from Huntington or its affiliate in opening their first Franchised Business, providing they meet Huntington’s requirements.

• The lender deducts a nonrefundable $4,200 loan facility fee from the loan amount.

4.  Required Purchases:  $6,000 for the Training and Technology Initial Fee and $18,847 for the Start-up Package

• New Franchisees must pay Huntington the Training and Technology Initial Fee of $6,000 and buy from Huntington the Start-up Package that costs $18,847 and includes shipping and New Jersey tax. Prices may vary due to applicable state sales tax.

5.  Royalty:  9.5% of Gross Revenue; $2,000 per month minimum

• Due Date:  10th of each month for preceding month.

• Royalty for Transfer and Subsequent Franchises may be different.

6.  Contribution to the Huntington Ad Fund:  2% of Gross Revenue; $500 per month minimum

• Due Date:  10th of each month for preceding month.

• Payable to the Huntington Ad Fund.

7.  Advertising Cooperative (“CoOp”):  amount is determined by CoOp, except as provided by the CoOp’s by-laws. Some CoOps impose no fee. Those that impose a fee average about $2,000 per month.

• Due Date:  Determined by CoOp members.

• Payable to your CoOp.

• Huntington credits any CoOp Fees to your minimum advertising requirement, to the extent they do not exceed it.

• Some CoOps may require you to spend more than the required minimums.

• You should speak with your CoOp’s members to determine contributions.

8.  Minimum Advertising Requirement:  $36,000 per year in opening year and 1st full year; $46,000 in 2nd year; $57,000 in 3rd year and each subsequent year

• Due Date:  As required by vendors.

• Prorated in opening and last years.

• Typically nonrefundable.

9.  Training and Technology Services:  $380 per month through end of 1st full year; $450 per month in 2nd full year; $550 per month in 3rd full year. Thereafter subject to change.

• Due Date:  10th of each month for preceding month.

• New Franchisees begin paying as of 3rd full month after the Agreement Date.

• Transfer and Subsequent Franchisees begin paying as of 1st full month after the Agreement Date; and pay the fee applicable to the number of years the franchise has been in operation.

10.  Customer Relationship Management Software:  to be determined

• Due Date:  To be determined.

• Huntington has not introduced this software, although it may do so at any time and, if it does, you will pay it and third parties fees for the use of the software.

11.  Text Messaging Software:  to be determined

• Due Date:  To be determined.

• Huntington has not introduced this software, although it may do so at any time and, if it does, you will pay it and third parties fees for the use of the software.

12.  Internet Service Provider (ISP):  $45-$130 per month

• Due Date:  As vendor requires.

• These costs vary based on the ISP and speed you select.

13.  Convention:  $495 for first attendee; $325 per subsequent attendee

• Due Date:  Before convention.

14.  Call Center:  $365 Call Center Monthly Use Fee, plus variable fees

• Due Date:  10th of each month for preceding month.

15.  Coaching Services:  $90 per hour; minimum of 3 hours per month

• Due Date:  10th of each month for preceding month.

16.  eCurricula: Standardized Test for Learning Center Students:  $400 annual processing fee; license fee of $3‐$12 per student; annual minimum of 25 licenses at $12 each

• Due Date:  As vendor requires.

• You must buy one license per Learning Center student. Fee depends on the time of year you first evaluate the student.

17.  eCurricula: Huntington Online Prep:  $72.50 for the four-test option and $51.75 for the two-test option

• Due Date:  As vendor requires.

• For each ACT or SAT student, you must buy a Huntington Online Prep program for online access to practice tests.

18.  eCurricula: iREADY:  $9.99, $15.00, and $29.99 for the 3‐, 6‐, and 12‐month license, respectively

• Due Date:  As vendor requires.

• For each Learning Center student, you optionally buy an iREADY program for online access to instructional materials.

• Fees are subject to change.

19.  Accounting and Payroll:  $175 to $215 per month

• The software vendor sets the monthly fee and it is subject to change.

20.  Accreditation:  $650 Annual Fee, plus $100 Administrative Fee to Huntington. $600 Visit Management Fee every 7 years.

• Due Date:  Upon billing.

• The Visit Management Fee is for the accrediting body’s initial and renewal visits; currently, it renews every 7 years. The Annual Fee is to maintain accreditation.

• You pay these fees to Huntington and it pays the accrediting body.

21.  Test Programs:  $250 per amendment

• Due Date:  Upon signing amendment.

• After you open your Franchised Business, Huntington may permit you to participate in its Test Programs. They are not part of the Huntington System.

22.  Transfer:  Transfer Fee is $6,000

• Due Date:  When you request Huntington’s consent to transfer.

• In addition to the Transfer Fee, the buyer pays a reduced initial franchise fee of $3,000 or $6,000, depending on the seller’s Franchise Agreement’s unexpired duration.

• The term of the Transfer Franchise Agreement is ten years.

• Huntington waives the Transfer Fee, Initial Franchise Fee, and Training and Technology Initial Fee for Transfer to your franchisee entity within 90 days of the Agreement Date.

• For certain Transfers, Huntington waives the Initial Franchise Fee and Training and Technology Initial Fee and reduce the Transfer Fee to $1,000.

• If you sell the Franchised Business for $25,000 or less, fees are less.

• Fees to Transfer a territory are greater.

23.  Subsequent Franchise Agreement:  $6,000

• Due Date:  Upon signing the Subsequent Franchise Agreement.

• Fee for a territory is greater.

24.  Extend Period to Sign a Lease:  $500

• Due Date:  When you request to extend.

• You must lease or acquire a Premises within 90 days after the Agreement Date. You may request a one-time, 30-day extension; if you do, pay Huntington a $500 fee.

25.  Extend Period to Open:  $500

• Due Date:  When you request to extend.

• You must begin operating within 270 days after the Agreement Date. You may request a one-time, 90-day extension; if you do, pay Huntington a $500 fee.

26.  Relocation:  $500

• Due Date:  When you request to relocate.

27.  LCOS Back‐Up Restoration:  $750

• Due Date:  Upon billing.

• If you lose your LCOS data, do not have a backup copy, and request Huntington’s assistance, it charges you to try to restore your data.

28.  Insurance:  your insurance company determines the fee; about $6,500 per year, excluding workers’ compensation

• Due Date:  As required by the vendor.

• Payable to your insurance company.

• If you do not obtain or maintain insurance, Huntington may obtain it for you and you pay Huntington’s cost.

29.  Taxes:  will vary

• Due Date:  Upon billing.

• You pay Huntington all taxes it pays on amounts you pay to it.

• Taxes are not typical and Huntington cannot estimate them.

30.  Audit:  pay any additional amount due; 18% annual interest; late fees; greater of Huntington’s cost of audit or $5,000; Huntington’s out‐of-pocket costs

• Due Date:  Upon billing.

• Payable if audit shows you failed to meet Huntington’s quality requirements; kept false books; submitted false reports or reports that understate Gross Revenue or enrollment by 3% or more, or are otherwise substantially incorrect.

31.  Reimbursement of Huntington’s Third-Party Costs:  will vary

• Due Date:  Upon billing.

• You pay Huntington the full amount of all its expenses in connection with your Franchised Business, including all amounts it pays attorneys, accountants, architects, brokers, accrediting agencies, investment bankers, investigating agencies, court costs, litigation costs, consultants, and agents.

32.  Default Fee:  $25 per day per violation

• Due Date:  Upon billing.

• If you commit a non-monetary breach and fail to cure, you pay Huntington this fee until the default is cured to offset Huntington’s costs in addressing the default.

• This fee is in addition to all other rights and remedies under law and the Franchise Agreement.

33.  Subsequent Default Fee:  up to $1,000 per subsequent violation

• Due Date:  Upon billing.

• If you receive three default notices, you pay Huntington this fee for each subsequent default to offset Huntington’s costs in addressing your multiple defaults.

• This fee is in addition to all other rights and remedies under law and the Franchise Agreement.

34.  Late Fee; Interest:  $100 late fee; 18% annual interest

• Due Date:  Upon billing.

35.  Attorneys’ Fees:  cost of action; attorneys’ fees

• Due Date:  Upon billing.

36.  Indemnification:  cost of claim against Huntington; attorneys’ fees

• Due Date:  Upon billing.