Sylvan LearningFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $108K – $239K
- 31st pct Education
- Avg gross sales
- $386K
- 19th pct Education
- Royalty
- 11.0%
- 49th pct Education
- Units
- 478
- 69th pct Education
- SBA default
- 23.8%
- 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
23.8% of SBA loans charged off across 356 loans, above the 16% franchise average.
Bottom line
- Total investment $108K – $239K including a $37K franchise fee, 11.0% ongoing royalty.
- Average unit revenue of $386K/year.
- Verdict B (Above Average) with a risk score of 59/100. 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, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Sylvan Learning, LLC
- Parent company
- Unleashed Brands, LLC
- Ultimate parent
- UA Holdings
- Predecessor
- and affiliates offer
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 2350 Airport Freeway, Suite 505, Bedford, TX 76022
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $151.5M
- vs $194.7M prior year
Affiliated brands
- Snapology IP
- PMA IP
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Sylvan Learning franchisees operate tutoring centers providing K-12 academic instruction in reading, math, writing, and test prep. Day-to-day operations include student assessments, one-on-one and small-group tutoring sessions, parent consultations, curriculum delivery, staff management, and marketing to maintain enrollment and student retention.
- CEO
- Susan Valverde
- Headquarters
- TX
- Founded
- 1979
- FDD year
- 2025
- States available
- 48
FDD Item 7 · 2025 filing · 18 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.
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
$27K
7.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $108K – $239K
- Better than avg vs category
- Liquid capital req'd
- $10K – $35K
- Better than avg vs category
- Franchise fee
- $33K – $37K
- Better than avg vs category
- Royalty
- 11.0%
- percentage_of_gross · 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.
Financial Performance
- Avg gross sales
- $386K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 438 units
- vs category median 14 · large
- Range (low → high)
- $18K→$3.0M
- Cohort dispersion (min → max)
- Quartile band
- $123K→$811K
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How Sylvan Learning Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 478
- Opened
- 24
- Last reporting year
- Closed
- 19
- Turnover rate
- 4.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.1%
- Net unit change last year
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 48
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).
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%
- 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)
- 85.0%
- 5-yr charge-off
- 10.0%
- Loans approved 2021+
- Active lenders
- 130
- Defaults
- 62
Vintage analysis
Sylvan Learning 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 Sylvan Learning'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 11 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 23.8% 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
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)
5 case reference(s): 0 pending, 1 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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 59 / 100 rating
- 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
- 03MINOR11-12% royalty is high relative to average $386K revenue, creating cash flow pressure
- 04HIGHParent 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
- 05MINORHigh initial investment range ($107K-$239K) with no transparency on typical payback period
- 06MINORWeak unit growth with 478 locations suggests market maturity and potential oversaturation
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius, zip codes, or geographic 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 | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
View Item 3 litigation summary
5 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- The Hub Technology Platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: The Hub Technology Platform
Item 20 · call current owners
Franchisee Contacts
120 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sylvan Learning · FDD (2025) PDF
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.
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 469 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 risk score of 59 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.