In this FDD Talk 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 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Huntington Learning Center franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Huntington Learning Center outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Huntington Learning Center’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, highest, and lowest total sales; distribution of sales by service (learning center service; test prep service; subject tutoring service; academic evaluation fees, registration fees, and miscellaneous receipts); average conversion rate (academic evaluation conversion, enrollment conversion); average hourly tuition (learning center tuition, test prep tuition); average length of stay (learning center LOS, test prep LOS); average rent; and average call center and coaching services fees for the 192 franchised Huntington Learning Centers open all of 2017 under the same franchisee (“Open Franchise Centers”)
- 2017 average salaries (teacher hourly pay, assistant director base salary) at company-owned Huntington Learning Centers
- certain expense items listed on the end-of-year profit and loss statements Huntington Learning Center franchisees submit to the franchisor
Section I – Background Information
14 Things You Need to Know About the Huntington Learning Center Franchise
Anne Huntington Appointed to Board of Directors
1. In early November 2018, Huntington Learning Center announced that Anne Huntington had been appointed to the company’s board of directors. Anne Huntington, vice president of business development and daughter of founders Eileen and Ray Huntington, will also serve on the board of the company’s Advertising Fund Board, Inc.
2. Eileen Huntington, co-founder and CEO of Huntington Learning Center, said, “The future of Huntington Learning Center has never looked brighter. We look forward to benefiting even more from Anne’s passion for our business and know she will be a huge asset to both boards and the entire Huntington community.”
3. Anne Huntington joined the 41-year-old family business in 2014 as a director and transitioned to head of strategic partnerships before being promoted to vice president of business development in 2017. Under her direction, the company has launched a number of impactful partnerships and initiatives, including Huntington Compensatory Education Services, a program designed to support special education students who have been denied their federal right to a free and appropriate education.
4. In addition to her role at Huntington, Anne is also an active chair and member of other education and arts-based groups such as Teaching Matters, Learning Disabilities Association of America, CHADD, COPAA, NYC’s Coalition for the Homeless, the Women’s Franchise Committee for the International Franchise Association, the Guggenheim Museum’s Young Collectors Council, and the Whitney Museum’s Future Leadership Council. Anne received a Bachelor of Arts from Colgate University.
5. Anne Huntington said, “It is an honor to join the board of directors and serve alongside leaders I deeply respect. Huntington Learning Center continues to experience unprecedented growth and I am excited to provide new perspectives and energy to build upon the company’s success.”
New Chief Marketing Officer
6. At the end of February 2018, Huntington Learning Center announced the appointment of Jennifer LoBianco as chief marketing officer. As CMO, LoBianco will leverage her more than two decades of marketing expertise, in and outside of the franchise sector, to oversee corporate and franchise marketing initiatives, as well as lead a strategic planning team as Huntington Learning Center continues its nationwide expansion.
7. LoBianco said, “Working with such a reputable brand, with such a deep legacy in the education and franchise space, is a dream come true. Our goal is to develop the most effective marketing strategies that will drive franchise growth and continue to provide top-of-the-line service to our students and their families.”
8. Prior to joining Huntington Learning Center, LoBianco most recently served as chief marketing officer for American Financial Resources, where she spearheaded marketing efforts for the company’s national, online direct-to-consumer mortgage brand, eLEND.com, and its B2B broker business.
9. According to Eileen Huntington, co-founder and CEO of Huntington Learning Center, “Jennifer’s invaluable marketing expertise and shared passion for our world-class student programs make her the perfect addition to the Huntington Learning Center growth and development team.”
10. The idea for Huntington Learning Center was conceived by Eileen and Dr. Ray Huntington in 1977. The Huntingtons saw a need for individualized tutoring to help kids who were struggling and falling behind in school. The Huntingtons also wanted the tutoring session to take place in business and retail settings outside of the students’ homes.
11. Before starting Huntington Learning Center, Eileen was a tenured junior high and high school teacher who saw firsthand how many children entering her classrooms lacked the basic skills they needed to succeed. She wanted to find a long-term solution that addressed the root of the problem. Ray, who was working as a senior business analyst for a Fortune 100 company at the time, shared Eileen’s vision for helping children succeed.
12. The Huntingtons opened the first Huntington Learning Center in 1977 in Oradell, New Jersey. Not long after, they both left their previous jobs to dedicate their time to their new business. A second Huntington Learning Center was opened in 1978 and franchising began in 1985.
13. Since then, Huntington Learning Center has continued to grow across the United States and the Huntingtons’ daughter, Anne Huntington, has joined her parents in running the business.
Entrepreneur’s Franchise 500
14. Huntington Learning Center ranked No. 154 on Entrepreneur’s 2018 franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Huntington Learning Center franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Huntington Learning Center’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 219
- Outlets at the End of the Year: 224
- Net Change: +5
- Outlets at the Start of the Year: 224
- Outlets at the End of the Year: 237
- Net Change: +13
- Outlets at the Start of the Year: 237
- Outlets at the End of the Year: 251
- Net Change: +14
- Outlets at the Start of the Year: 37
- Outlets at the End of the Year: 38
- Net Change: +1
- Outlets at the Start of the Year: 38
- Outlets at the End of the Year: 35
- Net Change: -3
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 35
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- There were 251 franchised Huntington Learning Centers open as of the end of 2017. Of these, a total of 210 were open for all of 2017. Of these, 192 were operated by the same franchisees continuously during 2017. The remaining 18 changed hands due to transfer.
- The franchisor calls the 192 franchised Huntington Learning Centers open all of 2017 under the same franchisee the “Open Franchise Centers.”