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 2018 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 2018 FDD

• Section IV – Number of franchised and company-owned Tutor Doctor 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 Tutor Doctor’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, high, and low number of enrollments (including re-enrollments) for the top quartile, 2nd quartile, 3rd quartile, and bottom quartile of the 26 Tutor Doctor franchisees during their first full calendar year and the 83 Tutor Doctor franchisees during their second full calendar year and beyond (separately stated) operating in the United States during the entire 2017 fiscal year

Section I – Background Information

15 Things You Need to Know About the Tutor Doctor Franchise

Prepares for 2018 Amidst Aggressive Development and Branding Initiatives

1.  In early February 2018, Tutor Doctor announced that it had closed out 2017 with an impressive trail of accomplishments. Most notably, Tutor Doctor awarded 102 franchises, bringing the brand’s footprint to over 550 locations in 16 countries (at the time of the announcement). Additionally, Tutor Doctor signed several international development deals, published an academic resource book, received multiple industry accolades, and went through a major re-branding.

2.  Following a fruitful year, Tutor Doctor set its sights on aggressive growth goals, aiming to sign another 120 franchise agreements and break into multiple new countries in 2018. Specific areas targeted for development include Boston, San Francisco, Sydney, Singapore, Hong Kong, Johannesburg, New Orleans, Birmingham, Newcastle, Buenos Aires, and Ciudad de Mexico.

3.  Scott Thompson, vice president of global franchise development, said, “With a proven business model catering to an underserved need, we’ve set a 10-year goal of signing 1,500 franchisees and reaching $1B in sales. As we continue to expand rapidly toward this vision, we’re placing a serious focus on activating a great corporate team, optimizing our processes, sharing our brand story and driving quality leads in 2018.”

4.  Franchising since 2003, Tutor Doctor recently underwent a brand re-haul in October 2017, resulting in a fresh website; clean, simplified marketing materials; and streamlined brand messaging. Additionally, Tutor Doctor announced a partnership with Bramble, a software company specializing in online tutoring platforms, to introduce quality online tutoring resources to further assist clients with their personalized needs.

5.  Adding to their proprietary resource library, Tutor Doctor franchisees collaborated with seasoned educators to publish Academic Success Formula — How Ordinary Students Get Extraordinary Results, a savvy guide sharing secrets to set students up for academic achievement (available for purchase on Amazon).

6.  Frank Milner, president of Tutor Doctor, said, “The deficiencies in global school systems struggling to keep up with technology and the evolving economy is causing many parents to look outside of the school system for help with their children’s long-term educational success. This has resulted in a projected $200B valuation of the tutoring industry by 2023 due to steadily increasing demand. As the industry thrives, we remain committed to not only expand our brand but to continue playing a vital role in the academic success of as many children and adults as we can around the world.”

Academic Guide Generates Growth for Local Franchises

7.  In late June 2018, Tutor Doctor announced that it was leveraging its academic guidebook to foster deeper connections with students and families. Academic Success Formula — How Ordinary Students Get Extraordinary Results is a collaborative effort of educators within the Tutor Doctor network to instill winning habits — organization, confidence, healthy eating — that can lead to a child’s success, both in academics and in life.

8.  The book, now available on Amazon, has not only served as an excellent resource to families and teachers but also as a great marketing resource for Tutor Doctor franchisees. The book acts as a tangible tool to help franchisees build trust and credibility with students and families, while also offering valuable advice.

9.  According to Frank Milner, president of Tutor Doctor, “This isn’t like leaving behind a flyer or handing out marketing info at events. There is real value in providing parents with practical advice they can apply to their child’s academic program. Our franchisees have had parents come up to them afterwards thanking them for the book and how much they’ve taken from it or been able to relate to it. Building trust and forming relationships is a powerful method of business development and I’ve no doubt it will help attract and retain clients.”

10.  The Academic Success Formula covers a multitude of subjects by having educators question and improve their own teaching and learning practices in line with the most contemporary educational understanding. Subjects covered in the book include developing a growth mindset, organization, confidence, healthy eating, all with an emphasis on developing winning habits.

11.  Academic Success Formula provides valuable advice for both parents and prospective tutors wanting to be a part of the Tutor Doctor family. Kim Bjarnasson, a Tutor Doctor franchisee and graduate of the Canadian School of Natural Nutrition, said, “I was so pleased to use my academic experience in nutrition towards this book. Every one of us within the Tutor Doctor Network strives to assist children and families to get the most out of education and life, and the ‘Academic Success Formula’ is another tool to help us accomplish this goal.”

Company History

12.  Tutor Doctor was founded in 2000 by John Hooi in Toronto, Canada. Hooi felt that more school wasn’t the solution for children already struggling in school, and offered up his tutoring services. Hooi’s tutoring methods were an immediate success and he started franchising the Tutor Doctor concept in 2003.

13.  In 2007, Tutor Doctor was acquired by its current owners led by Frank Milner, the company’s president, who enhanced the business model and made plans to expand around the world. That same year, the first U.S. Tutor Doctor franchise opened and the following year, the first European location opened in the United Kingdom. Over the next few years, Tutor Doctor continued to grow internationally.

14.  In 2013, the company developed its X-Skills program and introduced Tutor Doctor 24/7. Today, Tutor Doctor has a presence in 17 countries and is seeking new franchisees worldwide.

Entrepreneur’s Franchise 500

15.  Tutor Doctor ranked No. 158 on Entrepreneur’s 2018 Franchise 500 list. Tutor Doctor was also named the No. 1 children’s tutoring franchise by Entrepreneur in 2018.

Section II – Estimated Costs

• Please click here for detailed estimates of Tutor Doctor 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 Tutor Doctor’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

Franchised

2015

• Outlets at the Start of the Year:  238
• Outlets at the End of the Year:  247
• Net Change:  +9

2016

• Outlets at the Start of the Year:  247
• Outlets at the End of the Year:  280
• Net Change:  +33

2017

• Outlets at the Start of the Year:  280
• Outlets at the End of the Year:  293
• Net Change:  +13

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 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.

• The tables below provide information on the enrollments reported by Tutor Doctor’s franchisees who operated during the entire 2017 calendar year (January 1, 2017 through December 31, 2017).

Franchisee Reported Enrollments (Includes Re-Enrollments) – January 1, 2017 to December 31, 2017

A. Franchisees in Business – 1st Full Calendar Year (26 Franchisees)

Number of Enrollments (includes re-enrollments)

Top Quartile (6 Reporting Franchisees)