Huntington Learning Center
Bottom line
- Total investment $164K – $302K including a $36K franchise fee, 9.5% ongoing royalty.
- Average unit revenue of $561K/year (median $482K).
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 281 loans (below the industry average).
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 Huntington Learning 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 Huntington Learning Center units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$505K
on $2.5M purchase
Total debt
$2.0M
SBA $1.3M + senior + seller note
Overview
About
Franchisees operate learning centers providing tutoring, test preparation, and academic enrichment services to K-12 students. Day-to-day operations include managing tutoring staff, scheduling student sessions, conducting assessments, marketing to local families, and maintaining center facilities. Revenue depends on student enrollment, retention, and session frequency across multiple subject areas.
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 · 13 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
Huntington Learning Center presents CAUTION-to-HIGH RISK due to contracting unit base, undisclosed profitability metrics, litigation history, and high royalty burden relative to average revenue.
Score breakdown · what drove the 50 / 100 rating
- 01MEDUnit decline of 2.5% YoY indicates shrinking franchise system with potential saturation or performance issues
- 02HIGHLitigation history includes fraud/misrepresentation allegation (settled 2023) suggesting franchisor-franchisee trust concerns
- 03MEDAverage Net Income not disclosed in Item 19 prevents accurate ROI analysis on $163k-$302k investment
- 04MED9.5% royalty on $561k average revenue equals ~$53k annual fee, leaving limited margin for operating costs and profit
- 05MINORHigh initial investment ($36k franchise fee + $163k-$302k startup) with no profitability transparency creates significant financial risk
- 06MINOR10-year term commitment in declining system reduces exit flexibility if unit economics deteriorate further
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Huntington Learning Center · FDD (2024) PDF