Sylvan Learning Franchise Cost, Revenue & Review 2026
- Investment
- $108K – $239K
- Disclosed sales
- $386K
- gross sales, not profit
- SBA charge-off
- 23.8%
- on 356 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sylvan Learning is an after-school tutoring franchise providing K-12 instruction in reading, math, writing, and test prep. Franchisees run learning centers handling assessments, small-group and one-on-one tutoring, and enrollment.
FranchiseVerdict summary · 2026
A Sylvan Learning franchise requires a total initial investment of $108K – $239K, including a $37K franchise fee and an ongoing 11.0% royalty[2]. Per the 2025 FDD, average unit revenue was $386K[2]. SBA 7(a) loans show a 23.8% charge-off rate across 356 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $108K – $239K
- 33rd pct Education
- Avg gross sales
- $386K
- 16th pct Education
- Royalty
- 11.0%
- 69th pct Education
- Units
- 478
- 78th pct Education
- SBA charge-off
- 23.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · 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 $108K – $239K including a $37K franchise fee, 11.0% ongoing royalty.
- RETURNSAverage unit revenue of $386K/year.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 23.8% across 356 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +5 franchised outlets in the latest year (24 opened, 19 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sylvan Learning, LLC
- Parent company
- Unleashed Brands, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- UA Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Sylvan Learning, Inc. (and earlier Sylvan Learning Systems, Inc.)
- Prior franchisor entity
- Incorporated in
- Delaware
- HQ
- 2350 Airport Freeway, Suite 505, Bedford, TX 76022
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $194.7M
- vs $151.5M prior year
Affiliated brands
- Snapology IP
- PMA IP
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 8
7 other brands on this site name UA Holdings, LLC as parent or ultimate parent in their own FDD.
- Class 101A
- Premier Martial ArtsC
- SNAPOLOGYA
- THE LITTLE GYMB
- Urban Air Adventure ParkA
- Water Wings Swim SchoolC
- XP LeagueB
Portfolio: Unleashed Brands
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Susan Valverde
- Headquarters
- TX
- Founded
- 1979
- FDD year
- 2025
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 11% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $37K | $37K | |
| Travel and Living Expenses While Attending Initial Training | $1K | $2K | |
| Initial Three Months' Rent and Security Deposit | $4K | $16K | |
| Real Estate Improvements and Site Preparation | $15K | $75K | |
| Development Project Management Fee | $6K | $6K | |
| Initial Inventory and Instructional Materials | $3K | $3K | |
| Specialized Furnishings | $6K | $15K | |
| Other Furniture and Miscellaneous Supplies | $3K | $5K | |
| Signage | $2K | $8K | |
| Grand Opening Marketing | $10K | $15K | |
| Local Marketing Expenditure | $2K | $2K | |
| Computers and other Hardware, Telephone, Internet Access & Software | $8K | $14K | |
| Miscellaneous Supplies | $15 | $150 | |
| Hub Technology Platform | $342 | $342 | |
| Call Center Participation | $1K | $3K | |
| Accounting Software | $135 | $600 | |
| Optional: Sylvan Edge and/or ACE IT! programs | $0 | $3K | |
| Additional Funds - Three Months | $10K | $35K | |
| Total initial investment | $108K | $239K |
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
- $108K – $239K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $35K
- Top 40% of category vs category
- Franchise fee
- $37K – $37K
- Top 40% of category vs category
- Royalty
- 11.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 16.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 11.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $114 |
| Training fee | $500 |
| Transfer fee | $6K |
| Renewal fee | $6K |
| Inventory (initial) | $3K – $3K |
| Total fee load | 16.0% of rev |
At 16.0% total fee load, roughly $62K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales land near the education norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Sylvan Learning until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$196K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Sylvan Learning unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $386K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 438 territories
- vs category median 16 · large
- Range (low → high)
- $18K→$3.0MCited, not corroborated — printed on page 67 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $123K→$811K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $386K/year in gross sales. Revenue-to-investment ratio: 2.2x.
Fee burden
Total ongoing fee load of 16.0% — above the Education median of 9.0%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System roughly stable (+1.9% 3-year CAGR) with 478 units.
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 medians
How Sylvan Learning Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 478
- Opened
- 24
- Last reporting year
- Closed
- 19
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 4.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +1.9%
- Net unit change over 3 years
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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
- Indiana
- Michigan
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
117 current owners across 15 states; 3 former (terminated, transferred or not renewed) listed separately.
- CA 63
- FL 13
- AZ 8
- AL 6
- TX 5
- DE 4
- CO 3
- CT 3
- NJ 3
- AK 2
- AR 2
- NC 2
- +3 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 356
- Loan volume
- $95.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 23.8%
- on 356 loans · 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)
- 76.2%
- 5-yr charge-off
- 10.0%
- Loans approved 2021+
- Active lenders
- 130
- Defaults
- 62
- Typical loan rate
- 5.8%
- avg rate to borrowers
- Franchised industry avg
- 20.4%
- brand above franchise avg ↑
- Jobs supported
- 447
- 7.5 per loan
- Lender concentration
- 19%
- top lender's share
Franchise vs independent — in educational support services, franchised businesses charge off at 20.4% vs 18.1% for independents — franchising is associated with 13% higher SBA default risk in this category.
Vintage analysis
Sylvan Learning charge-off rate by loan vintage
Top lenders financing Sylvan Learning franchisees
Showing 3 of 130 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Sylvan Learning from SBA 7(a) FOIA data.
- Principal loss rate
- 15.0%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 5.79%
- Avg chargeoff amount
- $297K
- Lender concentration
- 19.1%
- Job velocity
- 7.5 per $100K
- NAICS benchmark
- 18.4%
- NAICS 611710
- Jobs supported
- 447
Top SBA lendersTop lender holds 19% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Cambridge Savings Bank | 4 | $105K | 0.0% |
| 2 | Wells Fargo Bank National Association | 3 | $676K | 0.0% |
| 3 | United Community Bank | 2 | $375K | 0.0% |
| 4 | Melrose CU | 2 | $250K | 0.0% |
| 5 | The Huntington National Bank | 2 | $1.7M | 0.0% |
| 6 | TD Bank, National Association | 1 | $99K | 100.0% |
| 7 | Unity Bank | 1 | $419K | 0.0% |
| 8 | Liberty National Bank | 1 | $150K | 0.0% |
| 9 | Capital Bank, National Association | 1 | $214K | 0.0% |
| 10 | Adirondack Bank | 1 | $225K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MAMassachusetts | 4 | 0 | 0.0% |
| NYNew York | 4 | 0 | 0.0% |
| TXTexas | 3 | 1 | 33.3% |
| GAGeorgia | 2 | 0 | 0.0% |
| ILIllinois | 2 | 0 | 0.0% |
| CACalifornia | 1 | 0 | 0.0% |
| FLFlorida | 1 | 1 | 100.0% |
| IAIowa | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
| NCNorth Carolina | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.8% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 23.8% — 49% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Sylvan Learning presents moderate-to-caution risk due to stagnant growth, undisclosed profitability metrics, high royalties relative to revenue, and parent company litigation history across multiple brands.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 discloses four concluded matters, all involving affiliated brands rather than Sylvan Learning itself: (1) Maryland Securities consent order re Snapology unregistered franchise sales (2016); (2) UATP Management v. Leap of Faith Adventures (TX) settled 2022 with $5M payment to LOFA; (3) Unleashed Services v. Pabin re Class 101 employment, resolved 2024 via $275,000 buyback; (4) California Commissioner consent order re Premier Martial Arts unregistered sales, $10,000 penalty (2021). No litigation required to be disclosed against Sylvan.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are the consolidated audited financial statements of UA Holdings, LLC (parent of the franchisor Sylvan Learning, LLC). Figures reported in thousands; total revenues $194,710K, total liabilities $532,132K, other revenues $21,675K for fiscal year ended December 31, 2024.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MINORStagnant unit growth (1.1% YoY) suggests market saturation or franchisee struggles
- 02MEDNo Item 19 (average net income) disclosed — impossible to validate ROI claims or profitability
- 03HIGHParent company (Sylvan Learning/Cambium Group) has history of litigation across multiple brands (Snapology, Urban Air, Class 101, Premier Martial Arts) indicating systemic compliance or operational issues
- 04MINORHigh initial investment range ($107K-$239K) with no transparency on typical payback period
- 05MINORWeak unit growth with 478 locations suggests market maturity and potential oversaturation
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 16.0% 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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 8,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Texas (Tarrant County) |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 4 |
View Item 3 litigation summary
Item 3 discloses four concluded matters, all involving affiliated brands rather than Sylvan Learning itself: (1) Maryland Securities consent order re Snapology unregistered franchise sales (2016); (2) UATP Management v. Leap of Faith Adventures (TX) settled 2022 with $5M payment to LOFA; (3) Unleashed Services v. Pabin re Class 101 employment, resolved 2024 via $275,000 buyback; (4) California Commissioner consent order re Premier Martial Arts unregistered sales, $10,000 penalty (2021). No litigation required to be disclosed against Sylvan.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 32 hrs
- Training location
- In-person at a Sylvan Learning Center designated by Sylvan and Bedford, Texas; plus online and live Zoom webinars.
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- Hub Technology Platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Hub Technology Platform
Item 20 · call current owners
Franchisee Contacts
120 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sylvan Learning franchise?
The total investment to open a Sylvan Learning franchise ranges from $108K – $239K, with an initial franchise fee of $37K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sylvan Learning franchise owners earn?
According to Item 19 of the Sylvan Learning FDD, the average gross sales per unit is $386K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sylvan Learning?
Sylvan Learning is franchised by Sylvan Learning, LLC. Its parent company is Unleashed Brands, LLC. The ultimate parent named in the FDD is UA Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Sylvan Learning 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 Sylvan Learning FDD and qualifies whose outlets they describe.
What is Sylvan Learning's franchise failure rate?
Based on SBA 7(a) loan data, Sylvan Learning has a charge-off rate of 23.8% across 356 loans, meaning 23.8% 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 Sylvan Learning franchise locations are there?
As of their most recent FDD filing, Sylvan Learning has 478 total units in the United States, including 478 franchised units and 0 company-owned units. 24 new units were opened in the latest reporting year.
Is Sylvan Learning a good franchise to buy?
FranchiseVerdict rates Sylvan Learning as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.