FranchiseVerdict
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FV-02028·STRONGExcellent81

Prep Academy Tutors

Formerly known as Precision Tune Auto Care

Education - Tutoring & Test PrepFranchising since 2020Website
Investment
$53K – $66K
19th pct Tutoring & Te…
Avg revenue
55th pct Tutoring & Te…
Royalty
8.0%
27th pct Tutoring & Te…
Units
16
46th pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $53K – $66K including a $43K franchise fee, 8.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Prep Academy Tutors USA, Inc.
Parent company
2496939 Ontario Inc.
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
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Prep Academy Tutors unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $53K–$66K
Working capital
$
FDD reports $3K–$8K

Unlevered ROIC · per unit

152%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$64K
Payback
8 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Prep Academy Tutors franchisees operate one-on-one and small-group tutoring services in protected territories, delivering personalized academic support across K–12 subjects. Day-to-day operations include recruiting/managing tutors, scheduling sessions, client acquisition and retention, curriculum delivery oversight, and payment processing. Most franchisees serve as owner-operators or managers, handling client relationships and tutor supervision directly.

CEO
Adrian Dougherty
Founded
2020
FDD year
2025
States available
13

Item 7 · what it costs

The Vitals

Total investment
$53K – $66K
All-in to open one unit
Liquid capital
$3K – $8K
Cash you must have on hand
Franchise fee
$43K
Royalty
8.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
16
Opened
8
Last reporting year
Closed
1
Turnover rate
6.3%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+77.8%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2023
16+7
Franchised units
2024
9
Franchised units
2025
3
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 9 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 9 states
Not registered

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.

Total loans
11
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

44
Risk · 0-100
STRONG44 / 100

Early-stage tutoring franchise with concerning financial opacity, no Item 19 disclosure, and unclear royalty floor structure that could make unit economics unviable for low-revenue locations.

Score breakdown · what drove the 44 / 100 rating

  1. 01MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or profitability benchmarks
  2. 02MINORVery small system with only 16 units limits peer support network and economies of scale; high growth rate (77.8% YoY) may indicate instability or cherry-picked data
  3. 03MINORMonthly minimum service fee structure creates fixed overhead risk regardless of actual sales — unclear what the minimum is and how it impacts franchisees with slower months
  4. 04MEDHigh initial investment ($52.6k–$65.6k) + 8% royalty with no disclosed average revenue means breakeven timeline is completely opaque
  5. 05MINORProtected territory is positive, but 10-year term is longer than industry standard (5–7 years typical) and limits exit flexibility

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
15 hrs
POS system
Teachworks
Operating tech stack

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

37 numbers

Locked
(401) 462-••••
NJ
(973) 638-••••
NJ
(518) 473-••••
NJ

One-time purchase · CSV download · Validation questions included

FDD download

Prep Academy Tutors · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above