Prep Academy Tutors Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Prep Academy Tutors is a tutoring franchise offering one-on-one and small-group in-home and online tutoring for K-12 students. Franchisees run local operations, managing tutors, scheduling, and enrollment.
FranchiseVerdict summary · 2026
A Prep Academy Tutors franchise requires a total initial investment of $53K – $66K, including a $43K franchise fee and an ongoing 8.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $53K – $66K
- 15th pct Education
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 37th pct Education
- Units
- 16
- 36th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · 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 $53K – $66K including a $43K franchise fee, 8.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 60/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Prep Academy Tutors USA, Inc.
- Parent company
- 2496939 Ontario Inc.
- CEO title
- President and Director
- Adrian Dougherty
- Incorporated in
- Delaware
- HQ
- 191 Deloraine Avenue, Toronto, Ontario, Canada M5M 2B1
- Auditor
- SRCO, C.P.A., Professional Corporation
- Audited financials
- Franchisor revenue
- $67K
- vs $174K prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- PAT Canada
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Adrian Dougherty
- Founded
- 2020
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 91% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $43K | $43K | |
| Inventory/Start-up Suppliesnot refundable | $2K | $2K | |
| Professional/Legal Feesnot refundable | $2K | $10K | |
| Equipment Purchasenot refundable | $1K | $1K | |
| Opening Advertisingnot refundable | $1K | $1K | |
| Insurancenot refundable | $500 | $500 | |
| Telephone and Internetnot refundable | $600 | $600 | |
| Rentnot refundable | — | — | |
| Additional Funds - 3 Monthsnot refundable | $3K | $8K | |
| Total initial investment | $53K | $66K |
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
- $53K – $66K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $8K
- Top 40% of category vs category
- Franchise fee
- $43K – $43K
- Top 40% of category vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $2K |
| Renewal fee | $2K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Prep Academy Tutors did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Prep Academy Tutors unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
152%
Above the 30–60% band. Verify revenue is per-unit average
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% (near the Education average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 433.3% CAGR over 3 years across 16 units — operators are staying and new ones are joining.
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 averages
How Prep Academy Tutors Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 8
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Ceased ops
- 0.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 13 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.
13
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Negative franchisor equity of -$224,190 and a net loss of -$152,345 on $173,992 revenue for a small 16-unit system that began franchising in 2020. No litigation, bankruptcy, or going-concern note, and audited, but negative equity plus operating losses stack as concerns; no Item 19.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $43,000
Bankruptcy (Item 4)
Disclosed in last 7 years
BANKRUPTCY No person previously identified in Items I or 2 of this addendum has been involved as a debtor m proceedings under the U.S. Bankruptcy Code required to be disclosed in this Item. Item 6 OTHER FEES Regional advertising cooperatives of the nature described in Items 6 and 11 of the disclosur
Audited financials (Item 21)
Yes · SRCO, C.P.A., Professional Corporation
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: No
Score breakdown · what drove the 60 / 100 verdict
- 01MINORNegative net worth -$224,190
- 02MINORNet loss -$152,345 on $173,992 revenue
- 03MINORNo Item 19; small/young system
- 04MINORNo litigation or going-concern; audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic |
| Protected territory | Yes |
| Territory population | 50,000 |
| 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 | 5 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 15 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Teachworks
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Teachworks
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Prep Academy Tutors · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Prep Academy Tutors franchise?
The total investment to open a Prep Academy Tutors franchise ranges from $53K – $66K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Prep Academy Tutors franchise owners earn?
Prep Academy Tutors does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Prep Academy Tutors 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 Prep Academy Tutors FDD and qualifies whose outlets they describe.
What is Prep Academy Tutors's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Prep Academy Tutors (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 Prep Academy Tutors franchise locations are there?
As of their most recent FDD filing, Prep Academy Tutors has 16 total units in the United States, including 16 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is Prep Academy Tutors a good franchise to buy?
FranchiseVerdict rates Prep Academy Tutors as a A-grade franchise with a verdict score of 60 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.