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Huntington Learning Center Franchise ProfileChildren’s Franchises > Education & Tutoring |
What Are the Initial Investment Requirements for a Huntington Learning Center Franchise?
To start a Huntington Learning Center franchise, the initial investment ranges from $163,521 to $302,211. This includes a franchise fee of $36,000, along with additional costs like equipment, leasehold improvements, and working capital. Potential franchisees should have liquid cash available between $147,521 and $302,211 and a net worth of $300,000 to $500,000 to meet the financial requirements set by the franchise.
What Ongoing Fees Should Franchisees Expect?
Franchisees of Huntington Learning Center should anticipate ongoing royalty fees of 9.5% of gross revenue, along with a marketing fee of 2%. These fees contribute to the overall support and brand recognition that the franchise provides. Understanding these ongoing costs is crucial for budgeting and financial planning in the long run.
What Is the Revenue Potential for a Huntington Learning Center Franchise?
The average annual revenue per unit for a Huntington Learning Center franchise is approximately $561,327, with a median revenue of $1,147,278. Revenue can vary significantly, with the lowest reported annual revenue at $52,681 and the highest reaching $2,978,837. This range highlights the potential for profitability, although performance can depend on various factors, including location and management.
What Is the Breakeven Timeline for Franchisees?
Franchisees can expect to reach breakeven within about 18 months of opening their Huntington Learning Center. The investment payback period averages around 46 months, which gives prospective franchisees a clearer picture of the timeline for recovering their initial investment. Understanding these metrics is essential for evaluating the financial viability of this franchise opportunity.
Huntington Learning Center Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Huntington Learning Center Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 291 | 286 | 275 |
| Net Change YoY | -5 | -11 | |
| Franchised Units | 277 | 276 | 269 |
| Net Change YoY | -1 | -7 | |
| Corporate Units | 14 | 10 | 6 |
| Net Change YoY | -4 | -4 |
Investment Overview
The initial investment required to open a Huntington Learning Center franchise ranges from $163,521 to $302,211. This includes a franchise fee of $36,000, with additional costs for equipment, leasehold improvements, and initial marketing. Potential franchisees should also be prepared for ongoing fees, including a 9.5% royalty and a 2% marketing fee, which contribute to the center's operational support and brand visibility.
Financial Performance
Huntington Learning Centers average annual revenue per unit is approximately $561,327, with a median revenue of $1,147,278. The revenue can vary significantly, with the lowest reported at $52,681 and the highest reaching $2,978,837. This performance indicates a robust potential for profitability, although results can differ based on location and management.
Operational Metrics
Franchisees can expect a breakeven time of around 18 months, with an investment payback period of approximately 46 months. These metrics highlight the financial viability of the franchise, suggesting that with effective management and marketing, owners can recoup their investments within a reasonable timeframe.
Franchise Growth
As of 2023, there are 269 franchised units of Huntington Learning Center, down from 277 in 2021. The decrease in franchised units may indicate market challenges or strategic shifts within the company. However, the presence of 6 corporate-owned units reflects the brand's ongoing investment in its operational model.
Ongoing Expenses
Franchisees should anticipate annual operating expenses averaging $196,624. Key costs include rent ($51,288), advertising ($57,000), and payroll for a center manager ($53,600). Understanding these expenses is crucial for effective financial planning and ensuring the center's profitability.
Support and Training
Huntington Learning Center provides comprehensive support and training for franchisees, covering areas such as marketing, operations, and staff training. This ongoing support is vital for maintaining quality standards and achieving business success, helping franchisees navigate challenges and maximize their potential.
Frequently Asked Questions
The initial investment for a Huntington Learning Center franchise ranges from $163,521 to $302,211, which includes the franchise fee and other startup costs.