Best In Class Education Center Franchise Cost, Revenue & Review 2026
- Investment
- $84K – $143K
- Disclosed sales
- $209K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
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 and an ongoing 12.0% royalty[2]. 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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $84K – $143K
- 26th pct Education
- Avg gross sales
- $209K
- 5th pct Education
- Royalty
- 12.0%
- 70th pct Education
- Units
- 37
- 49th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · 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, 12.0% ongoing royalty.
- 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 49/100 (higher is better).
- GROWTHNegative: net -8 franchised outlets in the latest year (1 opened, 9 closed); 2 signed but not yet open (Item 20).
- 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 42% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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 | |
| Total initial investment | $84K | $143K |
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
- 12.0%
- Set by a formula · typical 6–8%
- 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 | 12.0% of gross 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 49% below the education norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for BEST IN CLASS EDUCATION CENTER until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$127K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $66K as Gross Sales Less Selected Expenses. This is a disclosed figure, not our estimate — we publish no modelled profit for BEST IN CLASS EDUCATION CENTER.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 16
- Range (low → high)
- $47K→$469KCited, not corroborated — printed on page 43 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $109K→$310K
- Bottom 25% → top 25%
- 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 median of 9.0%.
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 medians
How Best In Class Education Center Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 24.3%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- 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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- 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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 19 reports 2024 Gross Sales for 27 Qualifying Franchised Centers (All subset). Audited Item 21 financial statements of BiC Franchise System Corporation (Exhibit G) are referenced but not present in the OCR text, so all franchisor balance-sheet/income figures are null. Item 19 data is split into thirds (top/middle/bottom 1/3), not quartiles: top-third average $310,026, bottom-third average $109,376; quartile fields left null. Franchisor is early-stage (incorporated Feb 2023) with a cover-page Item 21 financial-condition risk warning.
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 49 / 100 verdict
- 01MEDUnit count declined 18.2% YoY (37 units) indicating system contraction and potential franchisee dissatisfaction
- 02MINORHigh initial investment ($84,375–$142,500) relative to average net income ($65,963) creates 1.3–2.2 year payback pressure
- 03MINOR5-year term is relatively short; renewal risk and system stability unclear with declining unit count
- 04MINOREducation 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 territory |
| 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
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.
Who owns BEST IN CLASS EDUCATION CENTER?
BEST IN CLASS EDUCATION CENTER is franchised by BiC Franchise System Corporation. Source: FDD Item 1, 2025 filing.
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 49 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
Other Education franchises
Compare similar franchise opportunities in the Education category
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.