In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Tutor Doctor franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Tutor Doctor franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Tutor Doctor franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Tutor Doctor’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, high, and low number of enrollments for the top quartile, 2nd quartile, 3rd quartile, and bottom quartile of the 21 Tutor Doctor franchisees in business 12-24 months and the 80 Tutor Doctor franchisees in business 25+ months (separately stated) operating in the United States during the entire 2016 fiscal year
- 2016 average enrollment value for the 21 Tutor Doctor franchisees in business 12-24 months and the 80 Tutor Doctor franchisees in business 25+ months (separately stated) operating in the United States during the entire 2016 fiscal year
Section I – Background Information
11 Things You Need to Know About the Tutor Doctor Franchise
Unveils New Corporate Logo and Slogan
1. In early October 2017, Tutor Doctor unveiled its newly refreshed logo and slogan. The brand says that the changes signify a new era for Tutor Doctor that coincides with its rapid worldwide expansion. The new logo features solid black and red tints to replace its old purple and light green color scheme with an academic cap. It also features a hand turning on the light to a student’s mind with the brand’s new slogan, “How learning hits home.”
2. According to Tutor Doctor, the slogan signifies how the brand brings its forward-thinking, positive mentality to the comfort of a student’s home. The new logo and slogan was immediately implemented at all of Tutor Doctor’s locations around the world.
3. Frank Milner, president of Tutor Doctor, said, “Our new logo better exemplifies who we are as a company and what we strive to achieve. We aim to create comfortable learning environments for our students and help them explore deep depths of their minds to help them accomplish things they never thought they would ever be capable of.”
Appoints New Vice President of Global Franchise Development
4. As Tutor Doctor continues to expand its global presence, the company appointed a new vice president of global franchise development in mid-September 2017. The company hired Scott Thompson, a 16-year veteran of the franchising industry, to fill that role. He previously served as the the VP of franchise development for Premium Franchise Brands, where he oversaw the development of cleaning companies JAN-PRO and Maid Right. According to Frank Milner, president of Tutor Doctor, “Adding Scott to the Tutor Doctor team will help us achieve our goal of serving every student we possibly can in territories all over the world.”
5. In the same press release, Tutor Doctor mentioned that it was on track to end 2017 with 600 territories around the world, up 100 from its 2016 year-end total. The brand said that it has seen rapid expansion in the United States by expanding its territories in both Chicago and Philadelphia. Tutor Doctor also plans to grow further in the United Kingdom, Australia, and Latin America.
6. Scott Thompson, the new VP of global franchise development, said, “It is a very exciting time at Tutor Doctor, growing by around 100 franchises per year in an industry that sees more than $100 billion each year in spending. But even with this type of growth, we haven’t even begun to scratch the surface. We have aggressive development goals in place for the next five years and aim to have an additional 1,000 franchises in place during that timeframe. We want families across the globe to experience our unique, one-to-one education model in the comfort of their homes.”
Experiences Rapid Growth in First Half of 2017
7. By the end of July 2017, the company had entered 35 new franchised territories year-to-date and said that it had plans to end the year near 600 franchised territories total. Some of the new territories that it is targeting include Chicago, Philadelphia, Florida, California, Oregon, and Washington.
8. Frank Milner, president of Tutor Doctor, said, “Our growth is a direct result of worldwide demand for academic success, quality tutors within our system and a terrific network of franchisees who are given the chance to maximize their reach in multiple cities. By purchasing territories, our franchisees are given the freedom to build a strong base of students in many towns in a specific region.”
9. Tutor Doctor was founded in 2000 by John Hooi in Toronto, Canada. Hooi believed that there was another solution for kids struggling with school besides more schooling. Hooi’s tutoring services were immediately successful and he began franchising Tutor Doctor in 2003.
10. As the company continued to expand, Hooi started working with a professional franchising group headed by Frank Milner, who has been the president of Tutor Doctor since 2007. Today, there are over 530 Tutor Doctor locations around the world.
Entrepreneur’s Franchise 500
11. Tutor Doctor has appeared on Entrepreneur’s annual Franchise 500 list every year for the past 10 years, except in 2008. The company’s highest rank was No. 107 in 2013, while its lowest rank was No. 492 in 2009. Tutor Doctor was named the No. 1 In-Home Tutoring Franchise of 2018 by Entrepreneur magazine.
Section II – Estimated Costs
- Please click here for detailed estimates of Tutor Doctor franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Tutor Doctor’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- Tutor Doctor provides the following information, which is based on the experience of its U.S. franchisees.
- Tutor Doctor does not currently require that you charge a certain maximum or minimum tutoring fee for your customers (although it reserves the right in the future to set maximum or minimum prices, subject to applicable law), so you may charge as much as you would like.
Part 1 – Franchisee Reported Enrollments
- The tables below in this Part 1 provide information on the enrollments reported by Tutor Doctor’s franchisees who operated during the entire fiscal year (April 1, 2016 through March 31, 2017).
- The number of “Enrollments” in the tables below are the number of students who enrolled with each of the included franchisees for tutoring services for one or more tutoring sessions (but typically, at least 36 hours of tutoring), as reported to Tutor Doctor by those franchisees.
- The data in Part 1 does not include any sales or revenues from these enrollments. The average and median enrollment value per franchisee are reflected below in Part 2.
- The information in the Tables 1 and 2 to Part 1 below is for Tutor Doctor franchisees operating in the United States during the entire 2016 fiscal year (April 1, 2016 through March 31, 2017).
- Tutor Doctor did not include in this information any franchisees that operated for only a portion of the 2016 fiscal year (35 franchisees in business for 12-24 months operating 55 units, and 6 franchisees in business for 25 or more months operating 6 units, were not included in Part 1 because they were not operational for the full 12 months in the 2016 fiscal year).
- Tutor Doctor also did not include in this Item 19 the data for franchisees that provided inadequate or no enrollment information (including 1 franchisee who has been in business for 12-24 months and who operates 1 unit, and 5 franchisees who have been in business for 25 or more months and who operate 7 units, who were not included in the information due to improper reporting).
- The results in Part 1 are organized into four “Quartiles,” with the “Top Quartile” representing the top performing 25% of the included franchisees, the “2nd Quartile” representing the second best performing 25% of the included franchisees, the “3rd Quartile” representing the third best performing 25% of the included franchisees, and the “4th Quartile” representing the bottom performing 25% of the included franchisees.
Table 1 – Franchisee Reported Enrollments (April 1, 2016 to March 31, 2017) for Franchisees in Business 12-24 Months (21 Franchisees)
Number of Enrollments
Top Quartile (5 franchisees)