Best In Class Education Center
Bottom line
- Total investment $84K – $143K including a $45K franchise fee.
- Average unit revenue of $209K/year (median $219K). Estimated payback in 1.7 years.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BEST IN CLASS EDUCATION CENTER unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
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
Overview
About
Best in Class Education Centers operate after-school and supplemental tutoring programs for K-12 students, delivering personalized instruction in core academics (math, reading, writing) and test preparation. Franchisees manage facility operations, hire and train tutors, recruit students through local marketing, and manage student progress tracking and parent communications.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with opaque financials, aggressive multi-tiered royalties, and unverified profit claims create meaningful investor risk.
Score breakdown · what drove the 63 / 100 rating
- 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
- 03MEDNo Item 19 financial performance representation disclosed despite $65,963 average net income claim — unverified and potentially misleading
- 04MINORHigh initial investment ($84,375–$142,500) relative to average net income ($65,963) creates 1.3–2.2 year payback pressure
- 05MINOR5-year term is relatively short; renewal risk and system stability unclear with declining unit count
- 06MINOREducation franchise sector experiencing secular headwinds from digital learning and economic sensitivity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
39 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BEST IN CLASS EDUCATION CENTER · FDD (2025) PDF