Tutor Doctor Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $94K – $139K
- 32nd pct Education
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 37th 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 avg · 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 reports Average Enrollment Value rather than annual gross sales, so unit revenue is not directly comparable.
- 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).
- 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.
- 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
- $740K
- vs $1.7M 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 82% 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%
- percentage_of_gross · 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
Tutor Doctor did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Tutor Doctor unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
51%
Within the 30–60% "attractive franchise" band
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 type
- Average Enrollment Value
- Sample size
- 106 franchisees
- vs category median 17 · large
- 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 average).
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 averages
How Tutor Doctor Compares
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
3-year detail · Item 20
- Opened (3yr)
- 37
- Closed (3yr)
- 7
- Terminated (3yr)
- 33
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Tutor Doctor'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 15 states
- Startup risk premium and job creation velocity
- 14-year lending trend
Instant access. No subscription.
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)
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 | Zip Code boundaries |
| 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
- 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
FDD download
Tutor Doctor · FDD (2022) PDF
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?
Tutor Doctor does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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), 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.
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.