Tutor DoctorFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tutor Doctor franchise requires a total initial investment of $94K – $221K, including a $55K franchise fee and an ongoing 8.0% royalty[2]. Per the 2022 FDD, average unit revenue was $3K[2]. SBA 7(a) loans show a 35.9% charge-off rate across 84 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $94K – $221K
- 29th pct Education
- Avg gross sales
- $3K
- 0th pct Education
- Royalty
- 8.0%
- 31st pct Education
- Units
- 369
- 68th pct Education
- SBA default
- 35.9%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.0x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
35.9% of SBA loans charged off across 84 loans, above the 16% franchise average.
Franchised units fell from 67 to 0 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $94K – $221K including a $55K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $3K/year (median $1K).
- Verdict C (Average) with a risk score of 68/100. 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, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tutor Doctor Learning Solutions, Inc.
- Parent company
- Clear Summit Group, Inc.
- CEO title
- President, Secretary & Treasurer and Member of the Board of Directors
- Frank Milner
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- 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
Tutor Doctor franchisees operate in-home and online tutoring services, recruiting and managing tutor networks to serve K-12 and test-prep clients in their protected territory. Day-to-day operations include client acquisition, tutor scheduling/quality control, billing, and customer retention—requiring both sales acumen and operational management.
- CEO
- Frank Milner
- Headquarters
- DE
- Founded
- 2020
- FDD year
- 2022
- States available
- 38
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $25K | $121K |
| Total initial investment | $94K | $221K |
Source: Tutor Doctor 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$355
13.0% margin
Unlevered ROIC
0%
EBITDA / total invested capital
Payback
527.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $94K – $221K
- Better than avg vs category
- Liquid capital req'd
- $15K – $45K
- Better than avg vs category
- Franchise fee
- $55K – $124K
- Near category avg 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 |
Financial Performance
- Avg gross sales
- $3K
- Per unit, per year
- Median gross sales
- $1K
- Item 19 type
- Average Enrollment Value
- Sample size
- 106 units
- vs category median 14 · large
- Range (low → high)
- $183→$5K
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
Revenue is only 0.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How Tutor Doctor Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 369
- Opened
- 37
- Last reporting year
- Closed
- 32
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.6%
- Net unit change last year
- 3-yr CAGR
- -0.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 14
- 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 · 28 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
Vintage analysis
Tutor Doctor charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count, undisclosed financials, and historical fraud allegations create material uncertainty around unit economics and franchisor trustworthiness in a contracting system.
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 68 / 100 rating
- 01MINORUnit count declining 1.6% YoY indicates system contraction and potential market saturation
- 02MEDNo Item 19 (average revenue/income) disclosed—inability to validate ROI claims on $94k–$220k investment
- 03HIGHPrior litigation involving fraud and negligent misrepresentation allegations, even if withdrawn, signals historical franchisor credibility issues
- 04MEDHigh franchise fee ($54,700) combined with 8% royalty creates significant breakeven burden without disclosed profitability data
- 05MINOR10-year term is lengthy commitment for tutoring franchise in competitive, price-sensitive education market
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
95 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 – $221K, 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?
According to Item 19 of the Tutor Doctor FDD, the average gross sales per unit is $3K. The median is $1K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 67 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 risk score of 68 out of 100, 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.
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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.