Sylvan Learning
Date of Incorporation: 1979
Franchising Since: 1980
Headquarters: Baltimore, MD
Country: U.S.
Description: Sylvan Learning, North America's most recognized provider of supplemental education for grades pre-K through grade 12, was founded in 1979 and has been franchising since 1980. Today, there are approximately 1100 Sylvan Learning centers conveniently located across the United States, Canada and abroad. Sylvan Learning delivers personalized tutoring programs to students of all ages and skills levels in reading, writing, mathematics, study skills and test prep for college entrance and state exams. Sylvan Learning's trained and certified instructors provide tutoring services in-center and online, and participating Sylvan Learning centers offer at-home instruction.
Franchise Offer: The franchisee must complete the prospective franchisee application and be awarded a territory by Sylvan's Franchise Committee. Sylvan Learning is looking for energetic individuals who enjoy working with families and children. Ideal candidates have an entrepreneurial spirit, solid business and sales skills, and will be an active part of the community in which they live and work. They should have the desire to motivate and inspire those around them and have an ability to build their business around and for the children and families they serve.
Financial Assistance: Sylvan Leaning does not offer direct financing of the franchisee's initial franchise fee. In limited situations, Sylvan Learning provides direct financing for other uses, and franchisor maintains relationships with financing companies.
Training and Assistance: Sylvan provides an initial training program for up to three members of a new franchisee's staff. Sylvan does not charge for this initial training, however, franchisee must pay all costs and expenses that they and their staff incur including travel and hotel expenses. Initial training takes place in Baltimore, MD. After the initial training, franchisee must complete ongoing training which continues for the term of the license agreement. Ongoing training includes online applications such as Sylvan University, regional training, onsite training and attendance at training programs at the National Conference.
Territory: Franchisee will receive an exclusive Territory. Territories are either a Territory A, which has 18,000 - 30,000 (or more) school-aged children (5 to 19 years-old), or a Territory B, which has 8,000 to 18,000 school-aged children.
Term of Agreement and Renewal: The length of the initial term is 10 years. If the franchisee is not in default and has complied with the License Agreement terms, the franchisee can renew for 10 years (unlimited additional renewals).
Obligations and Restrictions: A center must have at least one Director of Education. In addition, a Center Director is recommended. Sylvan will certify as a "Director of Education" those who have state or provincial teaching certification, demonstrate a mastery of the education skills necessary to administer diagnostic tests and individualized prescriptive courses, and who have satisfactorily completed the required training with a material mastery score of 80% or better. A Center Director is certified once he or she demonstrates appropriate business management skills and has satisfactorily completed the required training with a material mastery score of 80% or better. The franchisior recommends that directors hold four year degrees.
The courses of instruction and services that a franchisee offers are limited to the educational programs Sylvan licenses and any other program Sylvan specifically approves in writing.
Total Number of Units: 950 units worldwide.
Investment Tables:
Initial Investment:
TABLE 1
Territory A Center
| Name of fee | Low | High |
|---|---|---|
| Initial license fee | $48,000 | $48,000 |
| Travel and Living Expenses While Attending Initial Training | $2,640 | $3,840 |
| Initial Six Months' Rent and Security Deposit | $14,583 | $43,750 |
| Real Estate Improvements and Site Preparation | $10,000 | $55,000 |
| Initial Inventory of SYLVAN Learning Materials | $37,500 | $37,500 |
| Specialized Furnishings | $12,000 | $14,000 |
| Other Furniture and Miscellaneous Supplies | $10,000 | $12,000 |
| Signage | $4,000 | $8,000 |
| Computers, Copier, Printers, Facsimile, Telephone, Internet Access & Software | $25,000 | $35,000 |
| Additional Funds - Six Months | $48,000 | |
| TOTAL (does not include additional rent) | $211,723 | $305,090 |
TABLE 2
Territory B Center
| Name of fee | Low | High |
|---|---|---|
| Initial license fee | $42,000 | $42,000 |
| Travel and Living Expenses While Attending Initial Training | $2,640 | $3,840 |
| Initial Six Months' Rent and Security Deposit | $9,479 | $43,750 |
| Real Estate Improvements and Site Preparation | $10,000 | $55,000 |
| Initial Inventory of SYLVAN Learning Materials | $37,500 | |
| Specialized Furnishings | $7,450 | $8,400 |
| Other Furniture and Miscellaneous Supplies | Approximately $10,000 |
|
| Computers, Copier, Printers, Facsimile, Scanners, Telephone, Internet Access & Software | $20,000 | $30,000 |
| Additional Funds - Six Months | $40,000 | |
| TOTAL (does not include additional rent) | $179,069 | $270,490 |
Ongoing Fees:
| Name of fee | Amount |
|---|---|
| Royalty | Territory A license 8% and Territory B license 9% of monthly gross revenues |
| National Advertising Fee | 4.5% to 6.5% of monthly gross revenues |
| Local Advertising and co-op Expenditures | During the calendar year in which the franchisee signs the License Agreement and for 2 years thereafter the franchisee must contribute to co-op on the same basis as a majority of other members; after that, the required expenditure is the greater of 8% of gross revenues or $2,500 per month for Territory A license or $2,000 for a Territory B license |
| Audit | Cost of audit plus late fee on deficiency |
| Transfer Fee | $10,000, and $7,500 in case of transfer to existing SYLVAN licensee |
| Renewal Fee | 10% of the initial license fee set forth in SYLVAN’s then-current form of license agreement |
| Additional Center Administrative Fee | $1,000 |
| Territory Upgrade Fee | $10,000 for Territory upgrade |
| Territory Addition Fee | $15,000 for Territory addition plus incremental fee of $2.00 per school age child over 8,000 |
| Territory Split Fee | $5,000 for Territory Splits |
| Annual Educational Program and EOS Software Support Maintenance Fee | Currently annual fee of $249 |
| Educational Program Software Fee | Currently no fee, but a fee may be assessed in the future. |
| EOS Test Count Administrative Fee | Currently a range of $.50 to $4.95 per test |
| Symplicity Software Maintenance Fee | Current annual fee varies according to payment option: (1) If billed and paid in December, current annual fee is $1,125; (2) If autobilled in January, current annual fee is $1,250; and (3) If billed monthly over the year, current annual fee is $1,400 |
| Annual Training Subscription | Current annual subscription is $600 per territory. Franchisees with five or more territories receive a twenty percent (20%) discount per territory. |
| Resale Assistance Program | Up to 5% of the purchase price, and may include a $500 fee payable upon enrollment. |
| Liquidated Damages for Breach | Average monthly royalty over preceding 36 months |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Sylvan Learning.
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