Best In Class Education Center Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Best in Class Education Center is a supplemental education franchise offering math, reading, and test-prep tutoring for K-12 students. Franchisees run the centers, managing tutors, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A BEST IN CLASS EDUCATION CENTER franchise requires a total initial investment of $84K – $143K, including a $45K franchise fee. Per the 2025 FDD, average unit revenue was $209K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $84K – $143K
- 28th pct Education
- Avg gross sales
- $209K
- 4th pct Education
- Royalty
- N/A
- Units
- 37
- 49th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $84K – $143K including a $45K franchise fee.
- RETURNSAverage unit revenue of $209K/year (median $219K), with an estimated 32% cash-on-cash return (based on Gross Sales Less Selected Expenses). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- DECLINESystem contracting at -23.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BiC Franchise System Corporation
- Predecessor
- Best In Class Education Center, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Chairman
- Hao Lam
- Incorporated in
- DE
- HQ
- 4820 NE 4th St., Suite A-107, Renton, Washington 98059
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $357K
- vs $125K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- you
- Programs must be approved by us in advance
- LBIS
- Program at your Center
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Hao Lam
- Headquarters
- WA
- Founded
- 2023
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 83% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Initial Training Expenses | $2K | $3K | |
| Travel Expenses for Onsite Training | $1K | $4K | |
| Lease Deposit | $4K | $6K | |
| Build Out & Improvements | $3K | $35K | |
| Signage | $500 | $5K | |
| Decorating, Furniture & Furnishings | $3K | $4K | |
| Systems Implementation Feenot refundable | $2K | $2K | |
| Technology Systems | $2K | $3K | |
| Utility Deposits | $500 | $1K | |
| Business License | $200 | $400 | |
| Professional Fees | $3K | $5K | |
| Insurance Premium (3 months) | $875 | $1K | |
| Grand Opening Marketing Feenot refundable | $10K | $10K | |
| Additional Funds (3 months) | $9K | $19K | |
| Development Feenot refundable | $85K | $155K | |
| Total initial investment | $169K | $298K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $84K – $143K
- Top 40% of category vs category
- Liquid capital req'd
- $9K – $19K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- Greater of $250/month or sum of 12% of Gross Sales + 12% …
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 14.0%
- vs 9–13% typical
- Payback period
- 3.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Minimum $250/month; formula applies 12% to Gross Sales, 12% to Affiliate Program Sales, 6% to Special Program Sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Training fee | $10K |
| Transfer fee | $27K |
| Renewal fee | $3K |
| Total fee load | 14.0% of rev |
At 14.0% total fee load, roughly $29K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 74% below the education norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$31K
15.0% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
4.0 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $66K as Gross Sales Less Selected Expenses. Our model estimates $31K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Gross Sales Less Selected Expenses deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BEST IN CLASS EDUCATION CENTER unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
25%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 BEST IN CLASS EDUCATION CENTER units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$334K
on $1.7M purchase
Total debt
$1.3M
SBA $0.8M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $209K
- Per unit, per year
- Median gross sales
- $219K
- Avg gross sales less selected expenses
- $66K
- Reported as Gross Sales Less Selected Expenses in FDD Item 19
- Cash-on-cash
- 32.0%
- Based on Gross Sales Less Selected Expenses / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 27 outlets
- vs category median 17
- Range (low → high)
- $47K→$469K
- Cohort dispersion (min → max)
- Quartile band
- $109K→$310K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $209K/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 14.0% — above the Education average of 10.6%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -23.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Best In Class Education Center Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 1
- Last reporting year
- Closed
- 9
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 25.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- -23.4%
- Net unit change over 3 years
- 3-yr CAGR
- -23.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 9
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 20.0%
- Owners selling to other franchisees
- Continuity rate
- 80.0%
- Units that stayed open
- Termination rate
- 20.0%
- Franchisor-initiated terminations
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 9 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
9
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $60K
- Median loan
- $60K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting franchise system with opaque financials, aggressive multi-tiered royalties, and unverified profit claims create meaningful investor risk.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $45,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 verdict
- 01MEDUnit count declined 18.2% YoY (37 units) indicating system contraction and potential franchisee dissatisfaction
- 02MINORComplex tiered royalty structure (12% + 12% + 6%) could exceed 30% of revenue in blended scenarios, severely impacting profitability
- 03MINORHigh initial investment ($84,375–$142,500) relative to average net income ($65,963) creates 1.3–2.2 year payback pressure
- 04MINOR5-year term is relatively short; renewal risk and system stability unclear with declining unit count
- 05MINOREducation franchise sector experiencing secular headwinds from digital learning and economic sensitivity
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 14.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 17,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | King County, Washington |
| Jury trial waiver | Yes |
| Governing law | WA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 46 hrs
- On-the-job training
- 24 hrs
- Training location
- Washington (company or franchised Center); virtual (online)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee, with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- BCP-LMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BCP-LMS
Item 20 · call current owners
Franchisee Contacts
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BEST IN CLASS EDUCATION CENTER · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BEST IN CLASS EDUCATION CENTER franchise?
The total investment to open a BEST IN CLASS EDUCATION CENTER franchise ranges from $84K – $143K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BEST IN CLASS EDUCATION CENTER franchise owners earn?
According to Item 19 of the BEST IN CLASS EDUCATION CENTER FDD, the average gross sales per unit is $209K. The median is $219K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BEST IN CLASS EDUCATION CENTER FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BEST IN CLASS EDUCATION CENTER FDD and qualifies whose outlets they describe.
What is BEST IN CLASS EDUCATION CENTER's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BEST IN CLASS EDUCATION CENTER (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many BEST IN CLASS EDUCATION CENTER franchise locations are there?
As of their most recent FDD filing, BEST IN CLASS EDUCATION CENTER has 37 total units in the United States, including 36 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is BEST IN CLASS EDUCATION CENTER a good franchise to buy?
FranchiseVerdict rates BEST IN CLASS EDUCATION CENTER as a B-grade franchise with a verdict score of 48 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent BEST IN CLASS EDUCATION CENTER, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.