Franchise News
With the model that he and his executive director devised, Kolbow was able to purchase and grow his business, but COVID put their growth on hold.
In a recent interview with Franchise Times, Kent Kolbow discusses how he began working as a tutor at Sylvan Learning, the 750-plus unit supplemental and enrichment education franchise, in Fort Wayne, Indiana while he was a student at Purdue University. He became a franchisee by purchasing two centers in 1998 from his boss, and over time, Kolbow acquired other Indiana centers from retiring franchisees, using cash flow to pay for them.
“I typically offer about 60% of revenue, figuring 20% of that is profit,” he said in the interview, explaining his acquisition strategy. “It allows me to pay it off in three years.” He said after 18 months, the centers’ sales would typically swell by 130%.
He planned to grow outside of Indiana in 2020 after halting growth three years earlier to refine the system. While searching for a new location, COVID hit and altered his plans. By March of 2020, his franchise was in the same online-learning boat as public schools, yet only a third of his customers took advantage of the pivot to online instruction.
Earlier this year, however, Kolbow moved his family to central Florida after finally acquiring a center outside Indiana.
Read the full article here.
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