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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Huntington Learning Center’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, highest, and lowest gross revenue; percent 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); and average length of stay (learning center LOS, test prep LOS) for the 212 franchised Huntington Learning Centers open all of 2018 under the same franchisee (“Open Franchise Centers”) and the 34 company-owned Huntington Learning Centers open all of 2018 (“Open Corporate Centers”)

• 2018 average rent and square footage, and average call center and coaching services fees at the Open Franchise Centers

• 2018 average salaries (teacher hourly pay, assistant director base salary, center director base salary) at the Open Corporate Centers

• certain expense items listed on the end-of-year profit and loss statements that Huntington Learning Center franchisees submit to the franchisor

Section I – Background Information

20 Things You Need to Know About the Huntington Learning Center Franchise

Anne Huntington Named President of Company

1.  In mid-October 2019, Huntington Learning Center announced that Anne Huntington, daughter of the company’s founders, was promoted to president. Huntington, who most recently held the role of vice president of business development, will be responsible for leading the company’s continued franchise expansion, overseeing its digital transformation efforts, developing strategic partnerships, directing organizational change, and serving as the company’s public-facing representative. She will also continue to serve on the company’s board of directors.

2.  Eileen Huntington, CEO of Huntington Learning Center, said, “As co-founder of Huntington Learning Center and as a mother, I am incredibly proud of everything that Anne has achieved and look forward to what is to come.”

3.  As the active second generation of Huntington family leadership, Anne Huntington has dedicated herself to the company’s mission to give every student the best education possible, and its vision of world-class student results and franchisee profitability. Huntington joined the company in 2014 as a director and was promoted to head of public-private partnerships in 2015.

4.  In that role, she developed and launched Huntington’s Compensatory Education Services program, a program designed to support special education students who have been denied their federal right to a free and appropriate education. To date, this program has hundreds of active participants and is available at select Huntington Learning Centers nationwide.

5.  According to Anne Huntington, “I grew up in the Huntington Learning Center system, and I understand firsthand how important our work is. I feel privileged to have the opportunity to preserve the legacy that my parents built, to innovate and strengthen our company’s foundation, and to continue our mission that positively impacts students, families and communities across the country.”

6.  Since her elevation to vice president of business development in 2017, Anne Huntington has focused on bringing disruption and innovation to the storied company, both internally and externally. In March 2019, she spearheaded a strategic plan to open up 40 new franchising opportunities and 30-plus refranchising opportunities within the New York Metro market, which represents the largest franchise and refranchising expansion in the company’s 42-year history. Once sold through, these locations will represent a nearly 25% expansion of the company’s 300+ locations across the country.

7.  Additionally, Huntington is currently leading a digital transformation effort that will streamline the company’s operations and bring additional services to its students and franchisees.

Announces Significant Expansion of Franchising Opportunities in the New York Metro Area

8.  In early March 2019, Huntington Learning Center announced that it will begin rapid franchise growth in the New York Metropolitan area – the same region where the company first opened its doors in 1977. This period of significant expansion will present over 40 new franchising opportunities in New York, New Jersey, and Connecticut, in addition to 30-plus refranchising opportunities for the existing company-owned centers in the area.

9.  Anne Huntington, vice president of business development (at the time) and member of the board of directors, said, “This is a pivotal moment in Huntington’s history. We are excited for the opportunity to significantly expand our reach within this market and continue the mission that our co-founders, my parents, began 42 years ago, which is to give every student the best education possible. As the next generation of Huntington leadership, I am proud to carry the legacy they’ve built into the future.”

10.  Eileen Huntington, co-founder and CEO of Huntington Learning Center, added, “We have worked hard to develop truly turnkey franchising opportunities for aspiring business owners since we first made the decision to franchise in 1985. We’ve continued to iterate and perfect our operations over the years and believe that the time is now right for an expansion of this magnitude.”

Appoints New Senior Vice President of Franchising Development

11.  In mid-December 2018, Huntington Learning Center appointed Anderson Chand as its new senior vice president of franchise development. Chand has spent the past 20 years in both franchisor and franchisee roles and will use his wealth of expertise to help the company to double the number of centers over the next few years.

12.  According to Chand, “I was immediately attracted to Huntington Learning Center because of their mission to provide every student the best education possible. As the spouse of a special education teacher and father of a special needs child, I have always believed education is one of the greatest assets to a community. I look forward to expanding our services to more areas and helping even more children succeed.”

13.  Most recently, Chand was the chief operating officer for Popbar, a frozen dessert franchisor that has locations in the U.S., Canada, Panama, Portugal, Singapore, and Russia. He has also been responsible for nearly 1,200 franchise units as senior director of operations for Edible Arrangements International for the U.S. and Canada. Chand started his career on the franchisee side with food and beverage providers in airports including Taco Bell, KFC, and Pizza Hut.

14.  Eileen Huntington, co-founder and CEO of Huntington Learning Center, said, “Anderson’s illustrious career will be a tremendous asset to our team. He has been deeply ingrained in many facets of the franchising industry and we are excited to learn from him and grow our presence across the country.”

Company History

15.  Huntington Learning Center was founded in 1977 by Eileen and Dr. Ray Huntington in Oradell, New Jersey. Eileen Huntington had worked for many years as a tenured junior high and high school teacher and saw first-hand how many children entering her classrooms lacked the basic skills (including study skills) they needed to succeed.

16.  At this time, Ray Huntington was a senior business analyst for a Fortune 100 company and shared his wife’s vision for helping children achieve. He also believed that this was a viable opportunity to start a profitable business. The Huntingtons decided that they would try to fill the need for individualized tutoring and left their jobs to pursue their new business full time.

17.  A year after opening the first Huntington Learning Center, the Huntingtons opened a second location. After a few strong years, the Huntingtons began franchising the Huntington Learning Center concept in 1985. Over the next decade, Huntington Learning Center grew aggressively and by the late 1990s, there were 200 locations opened across the United States.

18.  However, in 2000, Huntington Learning Center defaulted on payments to some of its creditors who filed a court petition seeking involuntary Chapter 7 bankruptcy. Huntington fought the petition and repaid the creditors. The company decided to slow its growth and sold some of the company-owned locations.

19.  In October 2019, the Huntingtons’ daughter, Anne Huntington, was named president of the company.

Entrepreneur’s Franchise 500

20.  Huntington Learning Center ranked No. 48 on Entrepreneur’s 2019 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 2019 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 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  224
• Outlets at the End of the Year:  237
• Net Change:  +13

2017

• Outlets at the Start of the Year:  237
• Outlets at the End of the Year:  250
• Net Change:  +13

2018

• Outlets at the Start of the Year:  250
• Outlets at the End of the Year:  262
• Net Change:  +12

Company-Owned

2016

• Outlets at the Start of the Year:  38
• Outlets at the End of the Year:  35
• Net Change:  -3

2017

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  35
• Net Change:  0

2018

• Outlets at the Start of the Year:  35
• Outlets at the End of the Year:  34
• Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• There were 262 franchised Huntington Learning Centers open as of the end of 2018. Of these, a total of 225 were open for all of 2018. Of these, 212 were operated by the same franchisees continuously during 2018. The remaining 13 changed hands due to transfer.

• The franchisor calls the 212 franchised Huntington Learning Centers open all of 2018 under the same franchisee the “Open Franchise Centers.”

Part 1 – 2018 Gross Revenue of the 212 Huntington Learning Centers Open All of 2018 Under the Same Franchisee (“Open Franchise Centers”)