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.
In-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.
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FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH TUTOR DOCTOR AND THE TUTOR DOCTOR FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
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Tutoring in general supplies a great service to younger people in general, but of course helps people of all ages. The industry is way overbuilt though. There is no need for all these companies. When you ocme down to facts, tutoring is just that. Some companies may have better tutors in some areas than other companies and vice versa. I have over 30 years experience in Information Technology, Chemical Engineering, Finance and business in general. Much of this experience is in education. I helped operate a Stanley Kaplan center over 30 years ago. I get approached by tutoring companies to offer tutoring services for $15 – $20/hr. Helping people is great and if somebody has a question I will answer it. But companies want to charge clients a lot for ongoing services and pay tutors nothing. The test prep tutoring business is saturated also. I am talking mostly about college entrance exam prep and similar. There are so many companies large and small, schools, and individuals that offer this service. Just received notification that there is a well known tutoring franchise for sale in my geographical area. Sales are over $100,000 which is not terrible for a year, but the profit margin is 30%. Do you want a business like this?