TUTOR DOCTOR Franchise: A Great Business to Own?

Tutor Doctor franchise owners offer affordable tutoring services at a students’ homes.  Is the Tutor Doctor franchise a great business to own?  What should those considering this investment know about Tutor Doctor and its franchise opportunity?  See what others are saying and share your opinions below.

(UnhappyFranchisee.Com)  Tutor Doctor franchise owners offer affordable, in-home tutoring services for students and parents who prefer not to travel to a learning center.

Tutor DoctorIn-home tutoring not only provides convenience and a familiar setting for Tutor Doctor students, it eliminates the need for franchisees to invest and maintain a dedicated learning center.

According to Tutor Doctor website:

Tutor Doctor’s proven in-home tutoring business model has created over 400 units in 15 countries! Seven out of 10 consultations close with an average enrollment value of $2,346 — making Tutor Doctor one of the most successful and fastest growing education franchises on the market.

According to the 2015 Tutor Doctor Franchise Disclosure Document (FDD), Tutor Doctor currently offers three types of franchises: (a) a “Local Territory Franchise;” (b) a “Regional Territory Franchise;” and (c) a “National Territory Franchise.”

The total investment necessary to begin operation of these three types of franchises is:

  • $66,000 to $89,200 for a Local Territory Franchise, which includes $44,600 to $47,200 that must be paid to the franchisor and/or its affiliate;
  • $71,000 to $94,200 for a Regional Territory Franchise, which includes $49,600 to $52,200 that must be paid to the franchisor and/or its affiliate; and
  • $81,000 to $104,200 for a National Territory Franchise, which includes $59,600 to $62,200 that must be paid to the franchisor and/or its affiliate.

Is the Tutor Doctor franchise a great business to own?  Are Tutor Doctor franchisees successful… and happy?  What are the potential pros and cons of owning a Tutor Doctor  franchise?

We invite those familiar with the Tutor Doctor franchise program (franchisees, instructors, franchise or corporate employees, parents, educators) to share their opinions – positive and negative – with a comment below.

Anonymous comments are welcome; however, please use a valid email address (won’t be publicly visible).

Tutor Doctor Franchise Advantages – Opinions Invited

What benefits can those investing in a Tutor Doctor franchise expect?

Tutor Doctor franchise marketing cites “10 Great Reasons To Own A Tutor Doctor Education Franchise”:

  • Succeed with low overhead and high earning potential.
  • Work from home and fit in with your lifestyle.
  • The private tutoring industry will surpass 128 Billion Dollars by 2020.
  • A growing customer base and recurring revenue model.
  • Make a difference in the lives of children and help them succeed.
  • Strong, supportive and global network of franchisees for mentoring, friendship and support.
  • One of the fastest growing franchises and being recognized as an industry leader.
  • Extensive training & support to make sure you succeed.
  • The powerful, effective Tutor Doctor model is one that truly gets the best results for students.
  • Our customers love us – 95% of our families would recommend us to others.

Do you know of other benefits of owning a Tutor Doctor franchise? Share a comment below.

Tutor Doctor Franchise Disadvantages – And Potential Red Flags

Do you know of potential disadvantages of the Tutor Doctor franchise program?  Please share below.

Item 20 of the 2015 Tutor Doctor Learning Franchise Disclosure Document (FDD) reveals a disturbingly high number of franchise closures & terminations, and highest franchisee turnover among tutoring franchises.

In the years 2012, 2013 and 2014, there were a total of 349 franchise agreements.

111, or 31.8%, of these franchises were terminated, taken back by the franchisor, or transferred to other owners.

Tutor Doctor
Franchise Turnover
Locations

2012

Locations

2013

Locations

2014

Total

Agreements

Closed or

Transferred

Turnover

Rate

229 227 238 349 111 31.8%
Centers Terminated 48
Non-renewals 0
Reacquired by franchisor 0
Ceased Operations – other reasons 47
Transferred to new owners* 16

* In some cases, a transfer could mean a franchise was sold at a profit, but it often means that an owner exited the system at a loss.

What are the disadvantages of the Tutor Doctor franchise?

Why does it appear that a very high percentage of Tutor Doctor franchisees exit the system before completing the term of their franchise agreements?

Tutoring Franchises Average a High 25.52% Turnover Rate

Unfortunately, it appears that the entire tutoring services and supplemental education segment of the franchise industry is suffering from high franchisee turnover.

The ten largest franchises in this segment average 25.52% turnover, with several (Tutor Doctor, Sylvan, & Club Z) exceeding 30%.

Tutoring Franchise

Turnover Rates*

Turnover

Rate2012-2015

Closed or

Transferred2012-2014

Turnover

Rate2012-2015

Kumon 20.52% Eye Level 22.6%
Sylvan 31.17% Tutor Doctor 31.8%
Club Z 30.71% LearningRx 26.95%
Mathnasium 17% JEI Learning Centers 20.23%
Huntington 28.9% The Tutoring Center 25.33%

Are tutoring franchises – in general – not thriving in today’s marketplace?

Is the tutoring market overbuilt and saturated with tutoring franchises?

Should prospective franchisees stay away from education franchises in general?

Share your opinion below.  Company responses, clarifications and corrections are invited and encouraged.

Data Sources for Tutor Doctor and other tutoring franchises are the 2015 Franchise Disclosure Documents, or FDDS, of the respective companies.

ALSO READ:

TUTORING FRANCHISE Posts

 

TUTORING FRANCHISE GUIDE (Coming soon)

Is the KUMON Franchise a Great Business to Own?

SYLVAN LEARNING Franchise: A Great Business to Own?

HUNTINGTON Franchise: Is it a Great Business to Own?

Is the MATHNASIUM Franchise a Great Business to Own?

Is the EYE LEVEL LEARNING Franchise a Great Business to Own?

CLUB Z! TUTORING Franchise: A Great Business to Own?

FRANCHISE DISCUSSIONS by Company

 

ARE YOU FAMILIAR WITH TUTOR DOCTOR AND THE TUTOR DOCTOR FRANCHISE OPPORTUNITY?  SHARE A COMMENT BELOW.

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