The Tutoring Center Franchise Cost, Revenue & Review 2026
- Investment
- $87K – $169K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 17 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Tutoring Center is an after-school tutoring franchise providing K-12 instruction in reading, math, and test prep through its own method. Franchisees run a learning center managing tutors, enrollment, and student progress.
FranchiseVerdict summary · 2026
A The Tutoring Center franchise requires a total initial investment of $87K – $169K, including a $32K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. 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: low - issued within the last 12 months
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 scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $87K – $169K
- 27th pct Education
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- Flat fee
- Units
- 73
- 60th pct Education
- SBA charge-off
- N/A
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 $87K – $169K including a $32K franchise fee.
- RETURNSItem 19 discloses student enrollment (not gross sales) for franchised Centers by quartile for the period Jan 1-Dec 1, 2025.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (7 opened, 7 closed) (Item 20).
- DECLINESystem contracting at -11.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Tutoring Center Franchise Corp.
- Predecessor
- The Tutoring Center, Inc. (TTCI)
- Prior franchisor entity
- CEO title
- President, Secretary and Treasurer
- Edward S. Thalheimer, Ph.D.
- Incorporated in
- California
- HQ
- 3750 Long Beach Boulevard, Suite 100, Long Beach, California 90807
- Auditor
- WNR CPA's, Inc.
- Audited financials
- Franchisor revenue
- $2.1M
- vs $2.0M prior year
Overview
About
- CEO
- Edward S. Thalheimer, Ph.D.
- Headquarters
- California
- Founded
- 2005
- FDD year
- 2026
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 34% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $32K | $32K |
| Working capital (3–6 mo) | $2K | $5K |
| Equipment, build-out, other | $53K | $133K |
| Total initial investment | $87K | $169K |
Source: The Tutoring Center 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $87K – $169K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $5K
- Top 40% of category vs category
- Franchise fee
- $32K – $32K
- Top 40% of category vs category
- Royalty
- Flat monthly Royalty Fee: $500/month for first 3 months o…
- Ad fund
- No system-wide ad fund royalty disclosed; franchisee may …
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $500/month for first 3 months, then $1,500/month thereafter, escalating $25/year each January; plus Semi-Annual Program Fees of $600 twice a year and optional SAT/ACT Program Royalty of $400/month. |
| Technology fee | $200 |
| Training fee | $15K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $3K – $4K |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for The Tutoring Center is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one The Tutoring Center 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 annual revenue, royalty rate, ad fund rate, 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.
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: 2026 FDD
Financial Performance
Item 19 discloses student enrollment (not gross sales) for franchised Centers by quartile for the period Jan 1-Dec 1, 2025.
Reported for a subset of outlets rather than the whole system
Not a revenue figure
- Item 19 type
- student enrollment (non-revenue metric)
- Sample size
- 65
- vs category median 16 · large
- Source filing
- FDD 2026
- The FDD edition these figures were read from
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.
Disclosure
Item 19 reports student enrollment (non-revenue metric) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -11.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 The Tutoring Center 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 73
- Opened
- 7
- Last reporting year
- Closed
- 7
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -11.0%
- Net unit change over 3 years
- 3-yr CAGR
- -11.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 2
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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.
Where the owners are · Item 20 owner list
98 current owners across 5 states.
- DE 83
- CA 11
- AL 2
- AZ 1
- CO 1
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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $2.3M
- Median loan
- $140K
- 50th percentile
- Charge-off rate
- Limited · 17 loans
- Limited SBA coverage: 17 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 17 loans
- 5-yr charge-off
- Limited · 17 loans
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 2
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 23.8%
- n=590 loans
- Jobs supported
- 151
- 6.5 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 53% went to startups / new businesses, 47% to established operators
Franchise vs independent — in exam preparation and tutoring, franchised businesses charge off at 23.8% vs 19.2% for independents — franchising is associated with 24% higher SBA default risk in this category.
Top lenders financing The Tutoring Center franchisees
Showing 3 of 13 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 The Tutoring Center from SBA 7(a) FOIA data.
- Principal loss rate
- 9.2%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.95%
- Avg chargeoff amount
- $107K
- Lender concentration
- 17.6%
- Job velocity
- 6.5 per $100K
- NAICS benchmark
- 31.0%
- NAICS 611691
- Jobs supported
- 151
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 3 | $358K | 50.0% |
| 2 | TD Bank, National Association | 2 | $63K | 0.0% |
| 3 | Wilmington Savings Fund Society FSB | 2 | $473K | N/A |
| 4 | BayFirst National Bank | 1 | $173K | N/A |
| 5 | Readycap Lending, LLC | 1 | $110K | N/A |
| 6 | Commerce Bank | 1 | $140K | N/A |
| 7 | Merchants Bank of Indiana | 1 | $229K | N/A |
| 8 | First-Citizens Bank & Trust Company | 1 | $131K | N/A |
| 9 | PeopleFund | 1 | $63K | 100.0% |
| 10 | Lendistry SBLC, LLC | 1 | $150K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 7 | 2 | 50.0% |
| DEDelaware | 2 | 0 | -- |
| MOMissouri | 2 | 0 | -- |
| NJNew Jersey | 2 | 0 | 0.0% |
| SCSouth Carolina | 2 | 0 | -- |
| NYNew York | 1 | 0 | 0.0% |
| PAPennsylvania | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · WNR CPA's, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORNo litigation/bankruptcy/going-concern/distress
- 02MINOR82 units, revenue $2,147,559
- 03MEDItem 19 disclosed, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · 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 | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 12 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 56 hrs
- Training location
- Long Beach, California (corporate training facility) or other designated location; mentor OJT at a franchisee's Center
- Ongoing training
- Required
- Site selection
- Franchisee proposes site within "General Vicinity"; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- TrackVia
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TrackVia
Item 20 · call current owners
Franchisee Contacts
98 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 The Tutoring Center franchise?
The total investment to open a The Tutoring Center franchise ranges from $87K – $169K, with an initial franchise fee of $32K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Tutoring Center franchise owners earn?
Item 19 of the The Tutoring Center FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns The Tutoring Center?
The Tutoring Center is franchised by The Tutoring Center Franchise Corp.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the The Tutoring Center 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 The Tutoring Center FDD and qualifies whose outlets they describe.
What is The Tutoring Center's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Tutoring Center (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many The Tutoring Center franchise locations are there?
As of their most recent FDD filing, The Tutoring Center has 73 total units in the United States, including 73 franchised units and 0 company-owned units. 7 new units were opened in the latest reporting year.
Is The Tutoring Center a good franchise to buy?
FranchiseVerdict rates The Tutoring Center 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
Are you the franchisor?
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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.