Huntington Learning CenterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Huntington Learning Center franchise requires a total initial investment of $164K – $302K, including a $36K franchise fee and an ongoing 9.5% royalty[2]. Per the 2024 FDD, average unit revenue was $561K[2]. SBA 7(a) loans show a 28.9% charge-off rate across 225 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $164K – $302K
- 39th pct Education
- Avg gross sales
- $561K
- 25th pct Education
- Royalty
- 9.5%
- 45th pct Education
- Units
- 275
- 66th pct Education
- SBA default
- 28.9%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
28.9% of SBA loans charged off across 225 loans, above the 16% franchise average.
Franchising since 1985. Systems this mature have refined operations and brand recognition.
Franchised units fell from 277 to 269 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $164K – $302K including a $36K franchise fee, 9.5% ongoing royalty.
- Average unit revenue of $561K/year (median $482K).
- Verdict D (Below Average) with a risk score of 73/100. SBA loan charge-off rate of 28.9% across 225 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Huntington Learning Centers, Inc.
- Parent company
- Rare Holdings, Inc.
- Predecessor
- was Northern New Jersey Learning Center
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 496 Kinderkamack Road, Oradell, New Jersey 07649
- Auditor
- WithumSmith+Brown, PC
- Audited financials
- Franchisor revenue
- $21.3M
- vs $23.2M prior year
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.
- CEO
- Eileen C. Huntington
- Headquarters
- NJ
- Founded
- 1977
- FDD year
- 2024
- States available
- 39
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $26K | $28K |
| Equipment, build-out, other | $101K | $238K |
| Total initial investment | $164K | $302K |
Source: Huntington Learning Center 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$65K
11.5% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
4.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $164K – $302K
- Better than avg vs category
- Liquid capital req'd
- $26K – $28K
- Near category avg vs category
- Franchise fee
- $36K
- Better than avg vs category
- Royalty
- 9.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 11.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $6K |
| Renewal fee | $6K |
| Inventory (initial) | $4K – $6K |
| Total fee load | 11.5% of rev |
Financial Performance
- Avg gross sales
- $561K
- Per unit, per year
- Median gross sales
- $482K
- Item 19 type
- Actual
- Sample size
- 250 units
- vs category median 14 · large
- Range (low → high)
- $53K→$3.0M
- Cohort dispersion (min → max)
- Quartile band
- $231K→$1.0M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 5 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Huntington Learning Center Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 275
- Opened
- 3
- Last reporting year
- Closed
- 9
- Turnover rate
- 3.3%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -2.5%
- Net unit change last year
- 3-yr CAGR
- -2.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 22
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 225
- Loan volume
- $53.8M
- Median loan
- $200K
- 50th percentile
- Charge-off rate
- 28.9%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 65.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 81
- Defaults
- 65
Vintage analysis
Huntington Learning Center charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Huntington Learning Center's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 30-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 28.9% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
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.
Litigation (Item 3)
2 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $3
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · WithumSmith+Brown, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 73 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
2 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and off-site
- POS system
- LCOS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LCOS
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Huntington Learning Center · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Huntington Learning Center franchise?
The total investment to open a Huntington Learning Center franchise ranges from $164K – $302K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Huntington Learning Center franchise owners earn?
According to Item 19 of the Huntington Learning Center FDD, the average gross sales per unit is $561K. The median is $482K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Huntington Learning Center's franchise failure rate?
Based on SBA 7(a) loan data, Huntington Learning Center has a charge-off rate of 28.9% across 225 loans, meaning 28.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Huntington Learning Center franchise locations are there?
As of their most recent FDD filing, Huntington Learning Center has 275 total units in the United States, including 277 franchised units and 6 company-owned units. 3 new units were opened in the latest reporting year.
Is Huntington Learning Center a good franchise to buy?
FranchiseVerdict rates Huntington Learning Center as a D-grade franchise with a risk score of 73 out of 100, 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.
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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.