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How Sylvan Learning’s Streamlined Royalty and Fee Structure Makes It the Leading Franchise Opportunity In the Supplemental and Enrichment Education Category

Thanks to its streamlined royalty rate of 16%, franchisees are set up for long-term success right from the get-go.

By Taylor Karg1851 Franchise Contributor
SPONSORED 1:13PM 03/25/20

Over the last 40 years, Sylvan Learning has established itself as a leader in the supplemental and enrichment education category — so much so that it has grown to over 750 points of presence throughout the United States, Canada, United Arab Emirates, Hong Kong, Saudi Arabia, and Vietnam, among other countries. Since its inception in 1979, Sylvan Learning has carved out best practices in the industry thanks to its strong emphasis on a mission-driven philosophy, educational technology, giving back to the community and setting its franchisees up for success.

Sylvan Learning has indeed created a system to set its franchisees up for success right from the start, particularly due to its fee structure, making it the leading choice for prospective franchisees who are looking at getting into supplemental and enrichment education franchising. 

Sylvan Learning offers a streamlined royalty rate of 16%, a model that certainly sets the brand apart in the space. Unlike Sylvan Learning’s competitors, the all-in flat royalty rate is designed as part of a turnkey business model to optimize revenue. 

According to Georgia Chasen, vice president of franchise development for Sylvan Learning, in 2016, the brand’s ownership and leadership teams worked diligently to create a business model that brought Sylvan Learning into the 21st century. “Part of the business-model ‘revamp’ was to streamline the royalty rate to that 16% variable from the multi-layered cost approach we had before,” Chasen said. “The streamlined royalty rate gives our franchisees a better sense of what their financial obligations would be on a monthly basis. It also positions them to only pay royalties when they’ve received revenue from customers.”

Previously, the Sylvan Learning fee structure was not only more expensive, but it was also quite confusing to local owners, noted Jacob Jones, Sylvan Learning’s vice president of finance. For example, franchisees were previously charged an 8% royalty fee, a 5% marketing fee, $2.50 per SylvanSync session and $20 per initial assessment. Jones also noted that there were even test fees that would be charged on a case-by-case basis. All of these fees amounted to approximately 19%, which the leadership team deemed to be too much. 

Now, the Sylvan Learning fee structure is a flat rate of 16% and is all-encompassing. “We got rid of all those fees and molded them into one flat fee,” Jones said. “We wanted to place ourselves in front of the competition, and fixing our fee structure allowed us to do so.” 

The streamlined royalty rate includes payments to the brand’s national ad fund, mandatory student assessments and all online training resources, including e-learning courses and web conferences, and includes full-time corporate support. “With the royalty rate, franchisees get access to the exceptional technology Sylvan Learning is known for,” Jones said. “This includes our proprietary technology platform SylvanSync and any updates and new advancements, at no additional cost. This approach helps ensure that our local owners stay steps ahead of the latest industry trends.”

In addition to access to the brand’s cutting edge technology, reducing the royalty fee from 19% to 16% also gave local owners a serious advantage—and additional cash flow—over the competition. “New franchisees are beginning their business with an extra $24,000 in their pockets — that money can go a long way for marketing and bringing in additional students,” Jones said. 

What also makes Sylvan Learning’s fee structure attractive to existing and prospective franchisees is the access to the brand’s top-notch marketing support. Sylvan Learning’s national advertising efforts create a funnel that trickles down to franchisees’ local markets, creating a sense of recognition that is unparalleled to others in the supplemental and enrichment education category. Franchisees are then encouraged to use these strategies in their own marketing efforts. 

The ad fund also includes an established online presence, social media platforms and content, public relations, online directory management, creative deployment, the national Sylvan Learning website and local templated websites that are easy to personalize. Sylvan Learning franchisee Nagesh Nidaminuru noted how the brand’s innovative marketing strategies really helped him ramp up his business. “The leadership team has helped me immensely improve my local marketing efforts such as my website, social media platforms and TV/radio advertisements.”

Further, Sylvan Learning’s fee structure also comes with a robust support system. “Sylvan Learning has the best support system in the supplemental education franchise industry,” Chasen said. “Franchisees have a franchise business consultant (FBC) from the moment they sign on through their lifetime as a franchisee. Additionally, franchisees have access to support mechanisms from every department at corporate as well as a franchise community to help support them along the way.”

Jones added, “Franchisees have access to everyone at corporate for whatever they need. There’s no additional charge for reaching out to corporate and asking for help; we are here to help in any way we can.”

Nidaminuru touts the support he’s received from the corporate team. “We have access to an FBC for one-on-one support, any day, any time,” Nidaminuru said. “The support team is incredible and has helped me solve many problems on the fly. 

It’s easy to see why Sylvan Learning has become the premier choice in supplemental and enrichment education franchises. Thanks to the brand’s all-encompassing royalty rate of 16%, franchisees are set up for success from day one and are supported through their entire journey as a franchise owner. 

The startup costs for a Sylvan Learning franchise range from $68,680 to $159,085. The franchise fee is $24,000. To learn more about franchising with Sylvan Learning, visit https://sylvanfranchise.com/

*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.

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