Tutoring Franchise Failure Rates of the Top Education Brands

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• As a highly qualified tutor who has investigated a few tutoring franchises, I can tell you one important reason why tutoring franchises are failing. The franchise offers no value added to the tutoring process while charging parents way too much, and paying the tutors way less than they are worth. Tutoring franchises are middlemen that don't contribute anything except a fancy facility that drives costs up and is unneeded and not wanted.

  It would be like a franchise coming to town, claiming that their car repair place is really great, spending loads on advertising and marketing, then charging double the going rate for car repairs, and offering the mechanics 1/4-1/2 of their current hourly pay.
  Only the most ignorant car owners would patronize that establishment. Only the most shoddy mechanics (who couldn't keep jobs elsewhere) would accept that hourly pay.

  For a franchise to prosper it has to add value. Just because someone creates a franchise around a highly skilled profession, does not mean those professionals and the clients they serve are going to participate. The entire notion of a franchise is that it's a turnkey package allowing you entry into a particular market. When was the last time you wanted to patronize the local unskilled turnkey lawyer, doctor, accountant, or financial planner?

• What Terry says is true in principle, and that is exactly why Mathnasium does better than the rest of the pack. The added value of their diagnostics, curriculum, and proprietary methods is enormous over what the typical independent tutor would be able to provide, even one who is amazing at math and good with kids.

• The problem with tutoring franchises is that they provide a 1 to 1 service, which is a serious limiting factor on any business. They also lack income streams to be anymore than a part time business.

  Children's education businesses work because the tutor/student ratio is 1/20.

• For parents - If you want to throw your money, there better ways. Take your kids to some activities like jumping, bowling or any other physical activity centers.
  And for education - If you want your kid to excel, utilize the resources provided by their school. There plenty of practice material out there online (that is what your kid do at these learning centers). None (I really mean NONE) of the education franchise will do anything better to your kids.
  All of them are designed to get money from parents for teaching nothing.
  All the best!!

• I have been investigating the tutoring franchises. The profitability of these institutions are amazingly low. This is primarily driven by high royalties. See below (number includes marketing $$) -
  Mathnasium - 17%
  Kumon - 40%
  Sylvan - 26%
  Huntington - 40% (every call is charged)
  Club z - 25%
  Eye level - 25%

  Add following expenses - Rent, instructor charges, utilities, supplies and insurance.

  Question is why not open fast signs or molly maid or other franchises that charge similar investment amount and generate higher profits (EBITDA). In fact some of these businesses rake in $500K revenue on average and sales to investment ratio is more than 3:1.

  My two cents
  SV

• I am currently employed at one of these franchises as an in-home tutor (soon to be formerly employed). I can provide my insight as to why this model isn't great for franchisees, instructors, parents, or students.

  The person who interviewed me for the position asked almost no relevant questions about my background, experience, or preferences. I have a liberal arts degree but am very comfortable with advanced math and science courses all the way through the college-level. He ran a background check which of course shows my BA, however he took me at my word for the math and science. Of course, in my case this was not a problem. However, as a parent this would concern me. I could've easily been embellishing about my skills and this would've never been verified. In fact, the only formal test I was given to qualify me to tutor at this company for EVERY subject, was a reading test at a middle school level. This was all the center provided in terms of my testing.

  Upon accepting the position, I received zero training or instruction. I was simply sent to the home of a student and began tutoring. I do have prior experience so this was no problem, but I never even met the person who interviewed me (over the phone). This wouldn't make me feel great as a parent, especially if I'm spending $50/hr for someone to come to my home.

  Of this $50, as the instructor I make less than half of that. I am not compensated for prep time, for making phone calls, for materials...nothing. Only time that is spent in the home is compensated. Therefore, anything I do in my own time to prepare, research, buy materials, or expand my understanding of a topic go towards making the company look better without any reward for me.

  This is the main reason I am leaving. Of course, this is to leave out all of the comments I have about the general incompetence of the two people running the franchise. And there are A LOT of comments I have about that.

  I really do love tutoring. The best way to provide service to the parents and students, and to make sure that I receive a fair compensation, is to work out an agreement with each individual family. This has proven to be an effective method for everyone involved.

  The franchise owners are the definition of middlemen. They provide no value to the instructor or the student. In fact, I flat out refuse to use the materials they provide because they are subpar and not individualized.

  In short, I 100% agree with Terry's comment.