FDD Talk: How Much Does a Tutoring Club Franchise Make (Average Revenues and/or Profits)?


In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Tutoring Club franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Tutoring Club franchise, based on Item 7 of the company’s 2021 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Tutoring Club franchise, based on Items 5 and 6 of the company’s 2021 FDD
  • Section IV – Number of franchised and company-owned Tutoring Club outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
  • Section V – Presentation and analysis of Tutoring Club’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including:
  • pro forma example of monthly revenue, expense (rent, payroll, utilities, advertising, supplies, insurance, royalty fee, brand fund contribution, software fee), and net profit information for a hypothetical Tutoring Club center based on 5 different level of students enrolled per month (31, 62, 78, 94, and 156 students per month)

Section I – Background Information

14 Things You Need to Know About the Tutoring Club Franchise

Reasons to Own a Tutoring Club Franchise

1.  Tutoring Club is currently looking for franchisees across the United States. A few reasons to invest in a Tutoring Club franchise are:

2.  Community – Tutoring Club provides the platform to partner with other leaders in a franchisee’s community to foster progress. The company believes that franchisees play an active role in changing their communities one student at a time.

3.  Support – Tutoring Club stays with franchisees every step of the way, from initial training at corporate headquarters to ongoing education in all aspects of franchise management. Franchisee support network includes fellow franchisees, many of whom have owned their locations for more than a decade.

4.  Profitability – Tutoring Club wants franchisees to experience financial success as soon as possible and the company does this by keeping startup costs low. According to Tutoring Club, startup costs are 45% lower than other leading tutoring franchises. The Tutoring Club model requires little build out, and the equipment needed to run a center is far from cost prohibitive.

Offers a Wide Array of Academic Programs

5.  Tutoring Club offers four core Academic Programs: TC Foundations, TC Math, TC Reading, and TC Writing. TC Academic Programs ensure that students are prepared for the demands of reading, math, and writing skills at each stage of their academic journey. From Pre-K through 12th grade, students utilize an enrichment program that focuses squarely on the areas from which they will benefit most.

6.  After an initial assessment identifies potential areas of improvement, Tutoring Club works through adaptive modules that are designed to increase grade-level abilities in these academic disciplines and boost confidence across-the-board.

7.  The TC Foundations program is based on the best practices of early childhood education. Tutoring Club helps young students build the framework to grow and better understand their individual learning style. TC Foundations sessions include teaching reading comprehension, word work, and vocabulary development.

8.  The TC Math program breaks down complex math concepts into manageable pieces. Students master one piece at a time with the help of step-by-step instruction, building a solid foundation upon which each subsequent unit is built. This combination of specific skill instruction and ongoing assessment is the key to shaping, enriching, and maintaining math proficiency for students of all ability levels. Math sessions teach students how to master basic operations such as addition, subtraction, division, and multiplication. TC Math also teaches concept building and offers homework support.

9.  The TC Reading program teaches students of all ages to develop critical thinking skills. Building on the fundamentals established in students’ earlier years, Tutoring Club facilitates discussion to encourage understanding through an analytical lens. TC Reading lessons are designed to eliminate the stresses of reading while preparing students for the demands of the classroom and standardized testing. Sessions include teaching reading comprehension, vocabulary development, and word work/phonics lessons.

10.  The TC Writing program helps students to express themselves creatively, all the while ensuring that they adhere to the standard English conventions that make their work strong and coherent. Tutoring Club walks through each step of the writing process – from idea generation to revision – as a multipurpose tool for both academic and creative writing. As students master structure, mechanics, and expression, TC Writing expands into the finer points of effective writing. During TC Writing sessions, students are introduced to the steps of the writing process. Students are also taught grammar, punctuation, spelling, syllabification, scholarly citations, and everything else they need to develop strong writing skills.

Company History

11.  Tutoring Club was founded in 1991 and is based out of Henderson, Nevada. The company is an education franchise that was built on the idea of providing long-term, individualized academic assistance to students of all ages and abilities. Tutoring Club was founded by the uncle of Dan Pinkney, the company’s current chief operating officer. Pinkney has been with Tutoring Club for more than 16 years.

12.  To stand out from other education franchises, Tutoring Club says that it partners with parents and students through every step of their academic journey, from early learning all the way to college preparation. Tutoring Club’s proprietary curriculum and instruction help cater to the varied needs of a student population that spans from kindergarten through high school.

13.  Although Tutoring Club has been around for over 30 years, the brand’s growth has been slow. Today, there are a mix of company-owned and franchised locations across 20 states. A majority of Tutoring Club locations are in California. There are also a few international Tutoring Club locations in the Philippines and the United Arab Emirates.

Entrepreneur’s Franchise 500

14.  Tutoring Club did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

  • Outlets at the Start of the Year:  70
  • Outlets at the End of the Year:  69
  • Net Change:  -1

2019

  • Outlets at the Start of the Year:  69
  • Outlets at the End of the Year:  72
  • Net Change:  +3

2020

  • Outlets at the Start of the Year:  72
  • Outlets at the End of the Year:  72
  • Net Change:  0

Company-Owned

2018

  • Outlets at the Start of the Year:  10
  • Outlets at the End of the Year:  13
  • Net Change:  +3

2019

  • Outlets at the Start of the Year:  13
  • Outlets at the End of the Year:  13
  • Net Change:  0

2020

  • Outlets at the Start of the Year:  13
  • Outlets at the End of the Year:  13
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

  • The following table presents a pro forma example of annual revenue and expense information for a hypothetical Tutoring Center based on 5 different level of students enrolled per month. Typical retention per student is 10 months.
  • These figures are only estimates of what Tutoring Club thinks you may earn. Your individual results may differ. There is no assurance you’ll earn as much.

Tutoring Club Estimated Pro-Forma Center Profit/Loss

Gross Revenue Per Month:  $10,000



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