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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Huntington Learning Center’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 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 2019 under the same franchisee (“Open Franchise Centers”)
- 2019 average rent and square footage, and average call center and coaching services fees at the Open Franchise Centers
- 2019 average salaries (teacher pay as a percent of revenue, 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
21 Things You Need to Know About the Huntington Learning Center Franchise
Offers Academic Help for Students Impacted by COVID-19
1. In late July 2020, Huntington Learning Center announced that it had been hard at work to develop additional resources to support families as they navigate the uncertain start to school this fall. Regardless of the environment and learning track parents choose for their children, Huntington is proud to offer a variety of programs and resources that will help set students up for success this school year.
2. “At Huntington, we are working hard in real-time to evolve and elevate our programs in order to support students who have experienced a disruption in learning due to the pandemic,” said Anne Huntington, president of Huntington Learning Center. “As we have done for over 40 years, Huntington will continue to provide students with the best education possible no matter what situation comes our way.”
3. Huntington announced an exciting addition to its remote and in-person learning capabilities: Huntington Study Hall, a new resource that offers students the opportunity to attend their virtual schools at an accredited Huntington Learning Center in a structured environment that is quiet, safe, and clean, with certified teachers on-hand to help with their studies throughout the day. Huntington Study Hall is also available online with certified teachers.
4. Because each school district may require different formats, Huntington will offer flexible scheduling options to accommodate the needs of each student. Individualized tutoring and test prep programs are also available to complement Huntington Study Hall.
5. Anne Huntington added, “Our family-run company has an unmatched track record of serving students across the country through our proven learning programs. Our accredited programs and highly trained, certified teachers are available via our live virtual tutoring platform, HuntingtonHelps LIVE, and in-person at our centers, all of which are adhering to CDC and government guidelines and following strict cleaning and social distancing standards.”
Launches HuntingtonHelps LIVE to Provide Online Tutoring Capabilities Nationwide
6. Near the end of March 2020, Huntington Learning Center announced the launch of HuntingtonHelps LIVE, a virtual tutoring platform now available to existing and prospective Huntington students across the country. This decision came as schools and tutoring centers faced temporary closures, leaving parents and students with limited educational resources.
7. According to Anne Huntington, president of Huntington Learning Center, “Huntington’s mission has been resolute for the past four decades – and that is to give every student the best education possible. We are navigating uncertain times, and although we are far from ‘business as usual’ at the moment, we will continue to provide K-12 academic programs, support and resources to the hundreds of thousands of students and families who depend on us.”
8. Starting March 24, HuntingtonHelps LIVE is providing virtual one-on-one and small group tutoring and test prep sessions with Huntington’s certified teachers. It is available to both current and new students by appointment. Subjects offered include phonics, vocabulary, reading, writing; math and science; history and language studies; homework help and study skills. Huntington also offers standardized test prep sessions for a variety of exams including Advanced Placement, SAT, ACT, and state tests.
9. Enrolled and prospective students can start HuntingtonHelps LIVE by scheduling appointments with their local centers or by calling 1-800-CAN-LEARN. Students can also schedule sessions at HuntingtonHelps.com.
10. Additional resources include Huntington Learning Center’s webinar catalog. Available at the time of the announcement was “Remote Learning: How to Keep Your Child Engaged,” and launched on Thursday, March 26, 2020 at 1:00 pm ET was “Creating Structure at Home for Students with ADHD” with Dr. Mary Rooney from the National Institute of Mental Health (NIMH). Dr. Rooney provided important tips to help students with ADHD successfully learn at home during this time of transition.
Ranked a Top Franchise in Entrepreneur’s 41st Annual Franchise 500
11. In mid-January 2020, Huntington Learning Center was named to Entrepreneur magazine’s Franchise 500, a highly sought-after honor in the franchise industry. Huntington Learning Center claimed the No. 39 spot for its outstanding performance in areas including unit growth, financial strength and stability, and brand power. This marks the company’s highest ranking yet – moving up nine spots from 2019.
12. Anne Huntington, president of Huntington Learning Center, said, “We are honored to be named to such a prestigious list, and to be in the company of the country’s most successful franchise-based organizations. When we began franchising in 1985, eight years after the company started, we knew that we had the people, processes and procedures in place to make it successful. We continue to work hard to grow our franchise presence, increase profitability at the center level, and engage our franchisees around our shared mission of giving every student the best education possible.”
13. In the same press release, Huntington Learning Center said it was undergoing its largest franchise expansion to date, opening up more than 40 franchising opportunities across the Northeast region. To date, more than 50% of these franchise locations have been sold.
14. “Our franchising model is successful because our individualized programs are proven to get results,” said Huntington. “In 2019, students who participated in Huntington’s test prep programs reported an average increase of 229 points on the SAT and 5.4 points on the ACT, and over $71,000 in scholarship offers. We’re proud of our work and will continue to invest in our growth.”
15. Huntington Learning Center was founded in 1977 by Eileen and Dr. Ray Huntington in Oradell, New Jersey. Eileen Huntington was a junior and senior high school teacher who noticed that a large number of students lacked basic math and reading skills. She also found that these students often lagged further and further behind their classmates, unable to receive the attention they needed from teachers who were stretched thin because of large class sizes.
16. Ray Huntington, who had spent some time working as an instructor at Rutgers University, joined his wife in establishing Huntington Learning Centers to supplement students’ education.
17. Like the Huntingtons had predicted, there was high demand for their services and Huntington Learning Center was an immediate success. To keep up with the number of students and parents interested in the program, the Huntingtons began opening additional centers.
18. After a few years, Huntington Learning Center launched its franchising program in 1985. The brand grew quickly over the next few decades and by the end of the 1990s, there were over 200 locations.
19. Despite its success, Huntington Learning Center defaulted on payments to some of its creditors who then filed a court petition seeking involuntary Chapter 7 bankruptcy. Huntington fought the petition and repaid its creditors. As a result, Huntington decided to slow its growth and sell some of its company-owned stores.
20. Today, the Huntingtons continue to own and operate Huntington Learning Center. Their daughter, Anne Huntington, joined the company as a director in 2014 and was appointed president in 2019.
Entrepreneur’s Franchise 500
21. Huntington Learning Center ranked No. 39 on Entrepreneur’s 2020 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 235
- Outlets at the End of the Year: 250
- Net Change: +15
- Outlets at the Start of the Year: 250
- Outlets at the End of the Year: 262
- Net Change: +12
- Outlets at the Start of the Year: 262
- Outlets at the End of the Year: 286
- Net Change: +24
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 35
- Net Change: 0
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 34
- Net Change: -1
- Outlets at the Start of the Year: 34
- Outlets at the End of the Year: 16
- Net Change: -18
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- There were 286 franchised Huntington Learning Centers open as of the end of 2019. Of these, a total of 232 were open for all of 2019. Of these, 212 were operated by the same franchisees continuously during 2019. The remaining 20 changed hands due to transfer.
- The franchisor calls the 212 franchised Huntington Learning Centers open all of 2019 under the same franchisee the “Open Franchise Centers.”