In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Sylvan Learning franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Sylvan Learning franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Sylvan Learning outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Sylvan Learning franchise opportunity
Section V – Presentation and analysis of Sylvan Learning’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, high, and low gross revenue, by quartile, for the 340 Sylvan Learning licensed territories that operated continuously during the 24 calendar months of 2021 and 2022 under the same or similar form of joint Sylvan and SylvanSync License Agreement which is referenced by and included in the 2023 Disclosure Document
Section VI – Key ratios, comparables, computations, and analyses for the Sylvan Learning franchise opportunity (exclusive content for Platinum subscribers)
Section I – Sylvan Learning Franchise Costs
- Sylvan Learning franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial License Fee: $34,900
- Supplemental Training and Administrative Fee: $0 to $10,000
- Travel and Living Expenses While Attending Initial Training: $0 to $1,500
- Initial Three Months’ Rent and Security Deposit: $3,750 to $15,000
- Real Estate Improvements and Site Preparation: $15,000 to $50,000
- Initial Inventory and Instructional Materials: $2,900 to $3,000
- Specialized Furnishings: $5,300 to $10,000
- Other Furniture and Miscellaneous Supplies: $3,000 to $4,000
- Signage: $4,000 to $8,000
- Marketing During Initial 3-Month Period When the Primary Center First Opens: $10,000
- Computer Workstations, Initial Supply of 10 Apple iPad Tablet Computers (8th generation or later), Copier, Printers, Telephone, Internet Access, and Software: $7,500 to $13,930
- FOA Annual Membership Fee for Initial Period: $660
- Miscellaneous Supplies: $15 to $150
- Hub Technology Platform: $342
- Contact Center Participation: $1,220 to $3,100
- Additional Funds – Three Months: $9,500 to $35,000
- Total Estimated Sylvan Learning Franchise Costs: $98,087 to $199,582 (figures do not include additional rent)
Section II – Sylvan Learning’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Sylvan Learning’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial License Fee: $34,900
- Royalty: 16% of monthly gross revenues, with a total Minimum Annual Royalty of not less than $32,000
- Territory Advertising Minimum for Local Advertising and Co-op Expenditures: 8% of monthly gross revenues, capped at a maximum of $40,000 per territory per calendar year
Section III – Number of Franchised and Company-Owned Sylvan Learning Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 485
- Outlets at the End of the Year: 466
- Net Change: -19
2021
- Outlets at the Start of the Year: 466
- Outlets at the End of the Year: 474
- Net Change: +8
2022
- Outlets at the Start of the Year: 474
- Outlets at the End of the Year: 468
- Net Change: -6
Company-Owned
2020
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 6
- Net Change: -1
2021
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 5
- Net Change: -1
Section IV – News Updates on the Sylvan Learning Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Sylvan Learning Franchise (Item 19, 2023 FDD)
- With respect to the Sylvan System, as of December 31, 2022, Sylvan had 429 licensed territories in the United States, including a total of 468 Centers, which provided revenue reports to Sylvan.
- Of these, 340 licensed territories operated continuously during the 24 calendar months of 2021 and 2022 under the same or similar form of joint Sylvan and SylvanSync License Agreement which is referenced by and included in the 2023 Disclosure Document.
- This Item 19 does not include revenue from any licensed territory which operated during 2021 or 2022 pursuant to an earlier form of License Agreement which did not include the SylvanSync System offering; all 340 territories that are the subject of this Item 19 used SylvanSync in 2022.
- This Item 19 also does not include revenue from any territories that closed or opened during 2021 or 2022, and therefore were not open for the full 24 months of 2021 and 2022.
- The table below sets forth certain historic performance information by category for United States licensed territories that operated continuously throughout the 24 calendar months of 2021 and 2022 pursuant to a joint Sylvan and SylvanSync License Agreement. All such licensed territories are included in the following calculations.
- The term “licensee” as used in this Item 19 refers to a person or entity that entered into a joint Sylvan and SylvanSync License Agreement.
- The financial performance of company-owned territories is not included.
- The figures included in this Item 19 have not been audited.
2022 Sylvan Territory Gross Revenues by Quartile
Top 25% of Territories by Gross Revenue
- Number of Territories: 85
- Average Gross Revenues: $842,462
- Number and Percent That Met or Exceeded Average: 30/35%
- Median Gross Revenues: $690,669
- Highest Gross Revenues: $2,132,612
- Lowest Gross Revenues: $521,578
Mid-Upper 25% of Territories by Gross Revenue
- Number of Territories: 85
- Average Gross Revenues: $421,676
- Number and Percent That Met or Exceeded Average: 45/53%
- Median Gross Revenues: $426,547
- Highest Gross Revenues: $520,066
- Lowest Gross Revenues: $335,549
Mid-Lower 25% of Territories by Gross Revenue
- Number of Territories: 85
- Average Gross Revenues: $279,474
- Number and Percent That Met or Exceeded Average: 40/47%
- Median Gross Revenues: $280,643
- Highest Gross Revenues: $330,946
- Lowest Gross Revenues: $228,363
Bottom 25% of Territories by Gross Revenue
- Number of Territories: 85
- Average Gross Revenues: $162,167
- Number and Percent That Met or Exceeded Average: 47/55%
- Median Gross Revenues: $169,383
- Highest Gross Revenues: $226,570
- Lowest Gross Revenues: $32,039
- Gross revenue numbers in this table include Sylvan System and SylvanSync System gross revenues as well as Sylvan EDGE gross revenues and Ace it! gross revenues, if any, for the given territory.
- Not all franchisees delivered the Sylvan EDGE Program, which is optional. System-wide Sylvan EDGE Program gross revenues in 2022, as reported by franchisees, were $2,425,519.
- Sylvan offered the Ace it! Program as a separate franchise opportunity from January 2006 until January 2016; Sylvan began to offer the Ace it! Program as an optional product license in 2016. Not all franchisees delivered the Ace it! Program, which is optional. System-wide Ace it! Program gross revenues in 2022, as reported by franchisees, were $5,979,838.
- Of the 340 total territories included, 91% operated 1 Center within the territory, and 99% operated 1 or 2 Centers within the territory.
- Some licensed territories operated Satellites in the territory as part of the Licensed Business during this period. Satellites are optional. Generally, licensed territories which operate one or more Satellites generate more revenue than those which operate only one Center. You are not required to operate any Satellite in your territory.
- Sylvan offered substantially the same services to all of the 340 licensed territories included in the foregoing table, and substantially all of the licensed territories offered the same instructional services in reading, math, study skills, writing, and SAT/ACT test prep.
Section VI – Sylvan Learning Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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