Sylvan Learning
Bottom line
- Total investment $108K – $239K including a $37K franchise fee, 11.0% ongoing royalty.
- Average unit revenue of $386K/year.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Sylvan Learning unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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).
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.
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.
Score breakdown · what drove the 51 / 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
Item 11
Training & Operations
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
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sylvan Learning · FDD (2025) PDF