Tutor Doctor Franchise Cost, Revenue & Review 2026
- Investment
- $94K – $139K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 35.9%
- on 84 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Tutor Doctor is a tutoring franchise providing one-to-one in-home and online academic help for K-12 and test-prep students. Franchisees run a local business recruiting tutors, matching them to students, and managing scheduling and billing, typically home-based.
FranchiseVerdict summary · 2026
A Tutor Doctor franchise requires a total initial investment of $94K – $139K, including a $55K – $70K franchise fee and an ongoing 8.0% royalty[2]. The 2022 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 35.9% charge-off rate across 84 loans[1]. FranchiseVerdict grade: C (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: high - issued more than two years ago
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 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $94K – $139K
- 31st pct Education
- Avg gross sales
- N/A
- Per franchisee, not per outletProjection
- Royalty
- 8.0%
- 44th pct Education
- Units
- 369
- 77th pct Education
- SBA charge-off
- 35.9%
- % 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 $94K – $139K including a $55K franchise fee, 8.0% ongoing royalty.
- RETURNSItem 19 discloses "Average Enrollment Value" — the average revenue per customer enrollment, NOT whole-unit (per-franchisee) annual revenue. For the period April 1, 2021 to March 31, 2022, across 106 franchisees the average enrollment value per customer was $1,476, median $1,326, highest $5,280, lowest $183. 41 of 106 franchisees (39%) met or exceeded the $1,476 average. This is a per-transaction/per-customer metric, so whole-unit gross sales and net income are not disclosed. Tutoring costs are ~37.8% of system-wide tutoring revenue (tutor pay only, not franchisee net income). Hourly rate charged to families is typically $55-$65/hour.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 35.9% across 84 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -6 franchised outlets in the latest year (37 opened, 7 closed); 10 signed but not yet open (Item 20).
- FLAG33 units terminated last reporting year (8.9% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Tutor Doctor Learning Solutions, Inc.
- Parent company
- 2319100 Ontario Inc.
- FDD Item 1, page 6 of the 2022 FDD
- Ultimate parent
- Clear Summit Group, Inc. (CSGI), formerly Franchise Equity Group, Inc.
- Predecessor
- Tutor Doctor Systems, Inc. (TDSI); also Tutor Doctor Inc. (Canadian Predecessor) and Tutor Doctor, Inc. (TDI)
- Prior franchisor entity
- CEO title
- President, Secretary & Treasurer
- Frank Milner
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Delaware
- HQ
- 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805
- Auditor
- BDO Canada LLP
- Audited financials
- Franchisor revenue
- $1.7M
- vs $740K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Frank Milner
- Headquarters
- DE
- Founded
- 2020
- FDD year
- 2022
- States available
- 38
Can you afford it, and what does the money buy?
Entry cost runs 40% below the typical education franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Equipment, build-out, other | $40K | $84K |
| Total initial investment | $94K | $139K |
Source: Tutor Doctor 2022 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
- $94K – $139K
- Top 40% of category vs category
- Liquid capital req'd
- N/A
- Cash you must have on hand
- Franchise fee
- $55K – $70K
- Middle of category vs category
- Royalty
- 8.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
What do units actually make?
Source: FDD 2022 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Tutor Doctor 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 Tutor Doctor 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, COGS, labour, rent / occupancy, other operating costs and working capital, 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: 2022 FDD
Financial Performance
Item 19 discloses "Average Enrollment Value" — the average revenue per customer enrollment, NOT whole-unit (per-franchisee) annual revenue. For the period April 1, 2021 to March 31, 2022, across 106 franchisees the average enrollment value per customer was $1,476, median $1,326, highest $5,280, lowest $183. 41 of 106 franchisees (39%) met or exceeded the $1,476 average. This is a per-transaction/per-customer metric, so whole-unit gross sales and net income are not disclosed. Tutoring costs are ~37.8% of system-wide tutoring revenue (tutor pay only, not franchisee net income). Hourly rate charged to families is typically $55-$65/hour.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported per transaction, not per outlet
- Item 19 type
- per-transaction figures
- Sample size
- 106 franchisees
- vs category median 16 · large
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2022
- The FDD edition these figures were read from
- 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.
Fee burden
Total ongoing fee load of 10.0% (near the Education median).
Disclosure
Item 19 reports Average Enrollment Value rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 7.6% CAGR over 3 years across 369 units — operators are staying and new ones are joining.
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 Tutor Doctor Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
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 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 369
- Opened
- 37
- Last reporting year
- Closed
- 7
- Terminated
- 33
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -1.6%
- Net unit change over 3 years
- 3-yr CAGR
- +7.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 33
- Not renewed
- 3
- Transferred
- 7
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 10
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 28
- Franchisor's next-year forecast
- Transfer rate
- 10.5%
- Owners selling to other franchisees
- Termination rate
- 1.5%
- Franchisor-initiated terminations
- Ceased ops
- 1.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 41 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
237 current owners across 41 states.
- TX 30
- CA 21
- FL 21
- NC 14
- GA 13
- IL 11
- VA 11
- MD 9
- NY 8
- PA 8
- CO 7
- MA 7
- +29 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. 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
- 84
- Loan volume
- $9.0M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 35.9%
- on 84 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)
- 64.1%
- 5-yr charge-off
- 15.4%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 23
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 23.8%
- brand above franchise avg ↑
- Jobs supported
- 948
- 11.6 per loan
- Lender concentration
- 37%
- top lender's share
Borrower mix: 86% went to startups / new businesses, 14% 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.
Vintage analysis
Tutor Doctor charge-off rate by loan vintage
Top lenders financing Tutor Doctor franchisees
Showing 3 of 17 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 Tutor Doctor from SBA 7(a) FOIA data.
- Principal loss rate
- 24.6%
- Avg SBA guarantee
- 79%
- Avg interest rate
- 6.98%
- Avg chargeoff amount
- $87K
- Lender concentration
- 37.2%
- Job velocity
- 11.6 per $100K
- Startup risk premium
- +3.5pp
- NAICS benchmark
- 31.0%
- NAICS 611691
- Jobs supported
- 948
Top SBA lendersTop lender holds 37% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 29 | $3.5M | 44.4% |
| 2 | Celtic Bank Corporation | 19 | $2.4M | 47.4% |
| 3 | Stearns Bank National Association | 9 | $776K | 12.5% |
| 4 | Five Star Bank | 4 | $360K | 25.0% |
| 5 | Manufacturers and Traders Trust Company | 3 | $245K | 50.0% |
| 6 | VelocitySBA, LLC | 2 | $20K | 50.0% |
| 7 | Central Pacific Bank | 2 | $90K | 0.0% |
| 8 | Newtown Savings Bank | 1 | $42K | 100.0% |
| 9 | Northeast Bank | 1 | $75K | N/A |
| 10 | Security Bank | 1 | $80K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 13 | 5 | 55.6% |
| GAGeorgia | 7 | 3 | 42.9% |
| MOMissouri | 4 | 2 | 50.0% |
| VAVirginia | 4 | 1 | 33.3% |
| CACalifornia | 3 | 1 | 50.0% |
| FLFlorida | 3 | 2 | 66.7% |
| MDMaryland | 3 | 1 | 50.0% |
| NYNew York | 3 | 0 | 0.0% |
| TNTennessee | 3 | 1 | 50.0% |
| COColorado | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 35.9% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 35.9% — 124% 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
Tutor Doctor is a large 369-unit tutoring franchisor with positive net worth $246,901 and net income $41,031. The single litigation is a historical 2012 case never served and withdrawn in 2013. No bankruptcy, going-concern, or distress; audited, Item 19 disclosed. Clean profile.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Restivo v. Tutor Doctor Systems, Inc., et al., Case No. 30-2012-00618248-CU-BC-CJC (Orange County Superior Court of California, filed Dec. 12, 2012). Former franchisee alleged breach of contract, fraud, negligent misrepresentation, violation of California Franchise Investment Law, and unfair trade practices. Claim withdrawn July 2013. TDSI guaranteed buyer's future payments under transfer agreement but has not been called upon to make payments.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO Canada LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORPositive net worth $246,901, net income $41,031
- 02HIGHSingle litigation is dormant/withdrawn 2013 case
- 03MINOR369 units, no distress
- 04MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 75,000 |
| 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 | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
Restivo v. Tutor Doctor Systems, Inc., et al., Case No. 30-2012-00618248-CU-BC-CJC (Orange County Superior Court of California, filed Dec. 12, 2012). Former franchisee alleged breach of contract, fraud, negligent misrepresentation, violation of California Franchise Investment Law, and unfair trade practices. Claim withdrawn July 2013. TDSI guaranteed buyer's future payments under transfer agreement but has not been called upon to make payments.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 12 hrs
- Training location
- Toronto, Ontario and/or online
- Ongoing training
- Required
- Field support
- 12 hrs/yr
- On-site visits per year
- Site selection
- franchisee (home-based by default); franchisor reviews/approves if operating from a retail location
- Franchisor financing
- Not offered
- Item 10
- POS system
- Big Apple
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Big Apple
Item 20 · call current owners
Franchisee Contacts
238 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 Tutor Doctor franchise?
The total investment to open a Tutor Doctor franchise ranges from $94K – $139K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tutor Doctor franchise owners earn?
Item 19 of the Tutor Doctor 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 Tutor Doctor?
Tutor Doctor is franchised by Tutor Doctor Learning Solutions, Inc.. Its parent company is 2319100 Ontario Inc.. The ultimate parent named in the FDD is Clear Summit Group, Inc. (CSGI), formerly Franchise Equity Group, Inc.. Source: FDD Item 1, 2022 filing.
What is Item 19 in the Tutor Doctor 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 Tutor Doctor FDD and qualifies whose outlets they describe.
What is Tutor Doctor's franchise failure rate?
Based on SBA 7(a) loan data, Tutor Doctor has a charge-off rate of 35.9% across 84 loans, meaning 35.9% 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 Tutor Doctor franchise locations are there?
As of their most recent FDD filing, Tutor Doctor has 369 total units in the United States, including 369 franchised units and 0 company-owned units. 37 new units were opened in the latest reporting year.
Is Tutor Doctor a good franchise to buy?
FranchiseVerdict rates Tutor Doctor as a C-grade franchise with a verdict score of 40 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.