Huntington Learning Center Franchise Costs, Fees & FDD

Year Business Began: 1977

Franchising Since: 1985

Headquarters: Oradell, New Jersey

Estimated Number of Units: 260

Franchise Description: The franchisor is Huntington Learning Centers, Inc. The “Huntington System” is the proprietary instructional format that the franchisor has developed. Franchisees use the “Huntington System” to provide tutoring (which is categorized as either learning center service or subject tutoring) and test prep services using in-center, online, and hybrid (which is a combination of in-center and online) delivery methods in consumer-pay and, at their option, public-pay markets. Generally, franchisees will offer the Huntington services and eTutoring to parents of school-aged children and they will have the option to offer contract services to schools.
Training Overview: Franchisee Initial Training (FIT) consists of three components -- FIT-1, FIT-2, and FIT-3 -- each conducted over one week, Monday through Friday, of online, instructor-led training and 37 hours of online modules and meetings. FIT is geared toward helping the franchisee understand the Huntington franchise model and how to successfully operate and grow their business. Huntington Initial Training Program (HITP) consists of three components -- HITP-1, HITP-2, and HITP-3 -- each about 40 hours over two weeks, plus video modules. HITP is designed to help franchisees and their staff implement the “Huntington System” of learning and deliver their industry-leading services to students. Staff members attend one or more of these HITPs, depending on their job function. For advanced training, the franchisor typically conducts regional meetings and a national convention, varying the cities in which it offers them. In addition, the franchisor typically conducts local area meetings at a participating franchisee’s premises. The franchisor occasionally offers other advanced training, such as multi-unit training.

Territory Granted: Franchisees must operate the franchised business only at the premises the franchisor has approved. After the franchisor approves the franchisee’s premises location, it will grant the franchise an “exclusive area.” An exclusive area typically is a circular geographic area centered around the premises, with a radius of between zero and three miles. Typically, the franchisor excludes metropolitan areas and low-income areas. The radius may be zero, if, for example, the premises is in or near a metropolitan area, a densely populated area, or a low-income area, as the franchisor determines. Continuation of the right to operate the franchised business is not dependent upon achievement of any sales volume, market penetration, or other contingency, with the following exception: The franchisee’s gross revenue must exceed $350,000 for each 12 full-month period after their 1st anniversary.

Obligations and Restrictions: Franchisees or at least one member of the franchise ownership group must work full-time, year-round in the business. Franchisees should devote sufficient time and resources to ensure full and complete compliance with their obligations to the franchisor, their customers, vendors, and all others. The primary owner must hold at least a 20% ownership interest in the franchise and complete franchisee initial training. Franchisees must designate an individual to be team leader. The team leader need not have an ownership interest in the franchisee but often is the primary owner. The team leader is responsible for day-to-day operation and must work full-time in the business to fulfill their obligations under the Franchise Agreement. The team leader and the team leader’s spouse, owners and their spouses, spouses of guarantors, and all employees having access to any of the franchisor’s confidential information must sign the confidentiality agreement. Franchisees must sell all the services and products specified in the brand standards or in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees comply with the required conditions, they may sign subsequent franchise agreements, each for 10-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or other obligation. The franchisor offers a 25% discount off the initial franchise fee to all qualified teachers. If franchisees are, or if one of the owners is, a veteran honorably discharged from the U.S. Armed Forces or on active duty in the U.S. Armed Forces on the agreement date and if they are a new franchisee owning at least 10% of the franchise, then the franchisor will reduce the initial franchise fee for the first new franchise by 25%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$36,000	$36,000
Online Initial Training	$0	$200
Curricula and Testing Materials	$18,957	$18,957
Furniture, Computers	$45,162	$45,262
Start-up Supplies	$3,700	$5,700
Advertising	$19,306	$19,306
Training and Technology Initial Fee	$8,000	$8,000
Architect	$0	$3,200
Security and Utility Deposits; License Fees	$500	$3,000
Real Estate and Improvements	$0	$105,000
Exterior Sign	$500	$10,000
Interior Graphics	$2,175	$5,875
Professional Fees	$500	$3,000
Insurance	$2,500	$10,000
Additional Funds – three months	$22,067	$23,857
ESTIMATED TOTAL	$159,367	$298,357

 
Other Fees

Type of Fee	Amount
Continuing Royalty	9.5% of gross revenue; $2,000 per month minimum.
Advertising Fund	2% of gross revenue.
Advertising	Minimum of $57,000 per year.
Advertising Cooperative (CoOp)	Franchisees pay their CoOp, which determines the amount, except as provided by its bylaws. Fees average about $2,000 per month. Some impose no fee.
Training and Technology Services	$1,300 per month.
Convention	No charge for up to four attendees.
Online Training Facility Licenses	No charge for 1st two licenses.
Marketing Communication Program (MCP)	$100 monthly.
Platform Fee	Estimated to be between $2.00 and $3.00 per student-hour.
Added Software	To be determined.
Call Center	$390 per month, plus variable fees.
Virtual Testing	Estimated to be between $190 and $250 per month, credited against fees.
Conference Services	$300 per month, credited against fees.
Huntington Online Prep	$53.50 for the 2-test option; $74.50 for the 4-test option; $95.50 for the 6-test option.
Accounting & Payroll	$125 to $165 per month.
Transfer	$10,000
Subsequent Franchise Agreement	$6,000
Relocation or Renovation	$500 plus related costs.
Evaluation of Suppliers	Will vary.
Internet Service Provider	$45 - $130 per month.
Insurance	About $10,000 per year (excludes workers compensation).
Taxes and Income Taxes	Will vary.
Audit	Will vary.
Reimbursement of Third Party Costs	Will vary.
Default Fees	$100 or $1,000
Late Fee; Interest	$100 late fee; 18% annual interest.
Attorney’s Fees	Cost of action.
Indemnification	Cost of claim against the franchisor; attorney fees.

The above information has been compiled from the FDD of Huntington Learning Center. Year of FDD: 2025.
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