Learning ExpressFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Learning Express franchise requires a total initial investment of $201K – $388K, including a $40K franchise fee. Per the 2025 FDD, average unit revenue was $837K[2]. SBA 7(a) loans show a 22.9% charge-off rate across 76 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $201K – $388K
- 22nd pct Retail
- Avg gross sales
- $837K
- 11th pct Retail
- Royalty
- N/A
- Units
- 86
- 25th pct Retail
- SBA default
- 22.9%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
22.9% of SBA loans charged off across 76 loans, above the 16% franchise average.
Franchising since 1990. Systems this mature have refined operations and brand recognition.
Franchised units fell from 89 to 86 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $201K – $388K including a $40K franchise fee.
- Average unit revenue of $837K/year (median $820K).
- Verdict F (Bottom Quintile) with a risk score of 97/100. SBA loan charge-off rate of 22.9% across 76 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Learning Express, Inc.
- Incorporated in
- MA
- HQ
- 63 Walnut St. Devens, Massachusetts 01434
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $5.4M
- vs $4.9M prior year
Overview
About
Learning Express franchisees operate after-school tutoring and academic enrichment centers, delivering personalized instruction in reading, math, and other subjects to K-12 students. Day-to-day operations include student intake, curriculum delivery, progress monitoring, parent communication, instructor scheduling, and local marketing. Centers typically serve their surrounding community and rely on enrollment retention and word-of-mouth referrals.
- CEO
- Lauren Derse
- Headquarters
- MA
- Founded
- 1987
- FDD year
- 2025
- States available
- 22
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $151K | $318K |
| Total initial investment | $201K | $388K |
Source: Learning Express 2025 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
$67K
8.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $201K – $388K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $20K – $40K
- Better than avg vs category
- Royalty
- Greater of 5% of Gross Receipts or $1,500.00 a month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $125 |
| Transfer fee | $20K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $837K
- Per unit, per year
- Median gross sales
- $820K
- Item 19 type
- Average and Median Sales
- Sample size
- 84 units
- vs category median 49
- Range (low → high)
- $153K→$1.9M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How Learning Express Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 86
- Opened
- 3
- Last reporting year
- Closed
- 5
- Turnover rate
- 5.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.3%
- Net unit change last year
- 3-yr CAGR
- -3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 76
- Loan volume
- $14.4M
- Median loan
- $180K
- 50th percentile
- Charge-off rate
- 22.9%
- 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)
- 77.1%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 32
- Defaults
- 16
Vintage analysis
Learning Express 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 Learning Express'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
- 22-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 22.9% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Learning Express shows concerning unit decline, undisclosed profitability, and high fixed royalty costs that warrant careful validation before committing to a six-figure investment in a shrinking franchise system.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 97 / 100 rating
- 01MINORUnit count declining 2.3% YoY (86 total units) suggests shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 — unable to validate actual profitability; average revenue of $836,884 means nothing without expense data
- 03MINORHigh royalty floor of $1,500/month ($18,000 annually) creates fixed cost burden even during slow sales periods, reducing flexibility
- 04MINORInitial investment range ($201,491–$387,514) is substantial for a learning center with declining unit count and unproven net margins
- 05MINOR10-year term is long given system contraction; difficult to exit if performance underperforms
- 06MEDFranchise fee of $40,000 is moderately high relative to declining system size and lack of disclosed profitability metrics
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 |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic area defined by zip codes, streets, city, town, drive times, and natural boundaries… |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 320 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
93 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Learning Express · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Learning Express franchise?
The total investment to open a Learning Express franchise ranges from $201K – $388K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Learning Express franchise owners earn?
According to Item 19 of the Learning Express FDD, the average gross sales per unit is $837K. The median is $820K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Learning Express's franchise failure rate?
Based on SBA 7(a) loan data, Learning Express has a charge-off rate of 22.9% across 76 loans, meaning 22.9% 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 Learning Express franchise locations are there?
As of their most recent FDD filing, Learning Express has 86 total units in the United States, including 89 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Learning Express a good franchise to buy?
FranchiseVerdict rates Learning Express as a F-grade franchise with a risk score of 97 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.