How Much Does it Cost to Open a Sylvan Learning Center?

Sylvan Learning, the leading provider of personalized supplemental education for students in grades K–12, with more than 710 points of presence worldwide, is seeing new franchisees continuing to join the brand in record numbers. This growth is partly due to its proven business model designed to create a lucrative return on investment. Following the COVID-19 pandemic, the demand for high-quality and reliable tutoring services continues to grow, and Sylvan Learning offers prospects a chance to enter this booming segment for competitively low startup costs.

According to Item 7 of Sylvan Learning’s 2022 Franchise Disclosure Document (FDD), the total investment necessary to begin the operation of a Sylvan and SylvanSync business is $85,525–$186,930*, including $36,640–$50,140 in fees that must be paid to the franchisor or an affiliate. This puts Sylvan Learning on the lower end of the spectrum regarding education franchise costs.

“Most of our franchisees stay below $200,000 for the total initial investment, depending on the square footage of the center they decide to build out.  We believe that is a reasonable amount of money to invest to become your own boss,” said Jacob Jones, CFO of Sylvan Learning. “You've worked hard all your life, now it's time for you to take control of your destiny, and it's only going to cost less than $200,000. Franchisees can be confident that investment will allow them to run an educational franchise that is backed by technology and can help students on a day-to-day basis.” 

There are several reasons the concept requires lower start-up costs. Jones notes, for example, that Sylvan requires only 1,000 square feet for its centers, allowing franchisees to reduce their real estate and maintenance costs compared to other brick-and-mortar businesses. That low initial investment allows franchisees to more quickly open new locations in their territories as their business takes off.

“This is not the type of business where you need a lot of inventory and expensive machines,” Jones said. “We're talking about furniture for the students and iPads so staff can deliver tutoring. We also spend a lot of time with each franchisee to help them source the necessary equipment and ensure they get the best deal possible.”

In terms of ongoing costs, Sylvan offers a transparent, variable cost model, which includes a flat royalty fee of 16% of their monthly gross revenue. The price includes marketing funds, which include guidance for building an online presence, social media, public relations, online directory management, creative development, and national and local websites; online and in-person startup and ongoing training resources; student assessments and full-time corporate support. 

“Our royalty fee is based on what franchisees make — we only get paid when they get paid,” said Jones. “We don't have a lot of one-off fees. We don't have large technology fees, and we don't have large monthly training fees. We don't want to hit franchisees with heavy fees that will be coming down on them hard every month. Whether they have a good or a bad month, the expected royalty payments are driven by the amount of cash they bring into their center.”

So, what can prospects expect in exchange for this investment? According to Item 19 of the FDD, the average gross revenue from 308 reporting territories with one center open was $364,695*. The highest gross revenue among those 308 locations was a whopping $1,652,866. For the 25 Sylvan Learning territories with two centers in operation, the average gross revenue jumped to $751,373, with the highest in the category being $1,678,153. For the two Sylvan Learning territories with three centers open, the average gross revenue skyrocketed to $2,270,685.

Sylvan Learning allows franchisees to stand out by blending high-quality teachers with SylvanSync™ technology on the iPad. Additionally, the concept is the largest national branded provider of STEM and college prep courses. All of these services become lucrative revenue streams that franchisees can leverage to satisfy demand in their market. Best of all, franchisees can be confident they have the support needed to provide these services thanks to the backing of the brand’s experienced corporate team and in-depth infrastructure. 

Today, after signing an impressive 55 new franchise partners, awarding 47 total centers and opening 29 new centers in 2021 alone, the brand is set for major growth this year and beyond. With competitively low start-up costs, a scalable investment model and in-depth support, it is no wonder Sylvan Learning is planning to open one new center every other week throughout the year as more and more franchisees join the system.

Start-up costs for a Sylvan Learning franchise range from $85,525-$186,930. Learn more at www.sylvanfranchise.com.

*As reported in Sylvan’s 2022 Franchise Disclosure Document. For full financial information, please see the Item 7.

**As reported in Sylvan’s 2022 fFranchise Disclosure Document. For full investment information, please see the Item 19.