FranchiseVerdict
The Paterson Center logo
FV-02689·MODERATEStandard76

The Paterson Center

Education - Tutoring & Test PrepFranchising since 2023Website
Investment
$20K – $107K
4th pct Tutoring & Te…
Avg revenue
55th pct Tutoring & Te…
Royalty
Units
98
72nd pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $20K – $107K including a $15K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Paterson Center, LLC
Parent company
Paterson Holdings, LLC
Incorporated in
Delaware
HQ
PO Box 5386, Mooresville, NC 28117
Auditor
DJJCPA, LLC
Audited financials
Franchisor revenue
$242K
vs $509K prior year

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 The Paterson Center 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: $20K–$107K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

116%

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
$105K
EBITDA margin
14.0%
Total invested
$91K
Payback
10 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

The Paterson Center operates as a service-based franchise (specific service model unclear from public filings). Franchisees likely manage client relationships, deliver services or programs, and handle local operations within their assigned business model. The lack of disclosed revenue suggests either a B2B model, subscription-based service, or membership-driven operation with variable unit economics.

CEO
Jason Baker
Founded
2023
FDD year
2025
States available
30

Item 7 · what it costs

The Vitals

Total investment
$20K – $107K
All-in to open one unit
Liquid capital
$0 – $55K
Cash you must have on hand
Franchise fee
$15K
Royalty
None during current term
Ad fund
Not currently assessed

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
98
Opened
20
Last reporting year
Closed
3
Turnover rate
3.1%
Company-owned
10
Corporate units in the system
% franchised
90%
vs corporate-owned
Net growth (yr3)
+22.2%
Net unit change last year
2023
88+16
Franchised units
2024
72
Franchised units
2025
0
Franchised units

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

Item 20 · 14 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 · 14 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
2
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

62
Risk · 0-100
MODERATE62 / 100

Regulatory compliance violations, financial opacity, rapid unvetted growth, and territorial vulnerability create meaningful risk despite no royalties and low entry fees.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORRegulatory enforcement action by Washington State Division of Franchising (July 2024) involving unlicensed franchise agreements by affiliate Paterson Holdings, LLC — suggests compliance gaps in franchise documentation and governance
  2. 02MEDNo Item 19 financial performance data disclosed — impossible to validate the 22.2% YoY unit growth or assess actual franchisee profitability against $20K-$107K investment range
  3. 03MINORUnprotected territory creates direct competition between franchisees and undermines value proposition for $15,000 franchise fee
  4. 04MINORRapid expansion (22.2% YoY growth) without financial transparency raises sustainability and quality control concerns
  5. 05MED3-year term is short for franchisees to recoup investment; combined with no royalties, suggests potential revenue model misalignment or undisclosed income streams

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Protected territory
No
Initial term
3 years
Renewal term
3 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
120 hrs
On-the-job training
113 hrs

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

17 numbers

Locked
(651) 539-••••
MN
(317) 232-••••
IN
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

The Paterson Center · FDD (2025) PDF

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