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Investment

Sylvan Learning Franchise Cost: VP of Finance Jacob Jones Talks Numbers

Franchisees can purchase up to three different licenses that can bring multiple revenue streams. There are many factors that can affect the cost of opening a Sylvan Learning center, and the educational franchise is prepared to help franchisees in a variety of ways.

Sylvan Learning Vice President of Finance, Jacob Jones, gave 1851franchise.com the scoop on the costs associated with opening a franchised center and what sets Sylvan apart from the tutoring industry competition - both for franchisees and for customers.

“What sets Sylvan apart is the variety and flexibility we offer to prospective franchisees,” he said. “As a Sylvan franchise, you can offer reading, writing, math, study skills, and more. You have STEM products called Sylvan EDGE. You can do robotics. You can do engineering. You have college test prep for the SAT and ACT. You don’t get all of those programs from our competitors. You can be the one-stop educational resource for any student, whether they need tutoring or enrichment.”

The startup costs for a Sylvan location range from $68,680 to $159,085, which includes the initial franchise fee of $24,000. Potential franchisees must have a minimum liquidity of $75,000 and a minimum net worth of $150,000.

There are two main factors that affect the startup cost of a Sylvan location. One is the type of license the franchisee purchases. There are three different licenses to choose from: a Core License, which is the main Sylvan product offerings including a protected territory; a STEM “Edge” License that includes Coding, Robotics, Engineering, Science and Math; and an “Ace it!” License, providing franchisees with the tools they need to offer institutional or contract services to local schools.

The other factor is the overall build-out cost. Jones noted the franchise location can have a direct impact on building costs. “The regions can definitely affect this range,” Jones said. “Sometimes it’s a bit easier to build out locations in Middle America-type areas, but if you build out a center in New York or California, those can be more expensive. Luckily, Sylvan Learning can offer support to all franchisees in securing their real estate options.”

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Key Takeaways

  • The startup costs for a Sylvan location range from $68,680 to $159,085, which includes the initial franchise fee of $24,000. Regional real estate can affect build-out cost.
  • Potential franchisees must have a minimum liquidity of $75,000 and a minimum net worth of $150,000.
  • Sylvan lends up to $100,000 to get a new center up and running, plus 5% financing—a rate higher than our competitors offer. There are no payments for the first 12 months, and the following 6 months are interest only. The brand also offers a franchise fee discount for veterans.
  • Sylvan offers the most competitive royalty fee structure in the industry, with a flat 16% of monthly gross revenue all-in royalty fee.
  • Sylvan Learning offers new territories and resale opportunities in domestic markets as well as international franchising options. Franchisees receive a protected territory with geographic rights to the Sylvan system in a clearly-defined area.
  • Sylvan awards 3 types of licenses: a) a Core License, the main Sylvan product offering which includes a protected territory; b) a STEM “Edge” License that includes Coding, Robotics, Engineering, Science and Math; and c) an “Ace It!” License, providing franchisees with the tools they need to offer institutional or contract services to local schools.

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