In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Sylvan Learning franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Sylvan Learning franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Sylvan Learning outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Sylvan Learning franchise opportunity

Section V – Presentation and analysis of Sylvan Learning’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low gross revenue, by quartile, for the 307 Sylvan Learning licensed territories that operated continuously during the 24 calendar months of 2022 and 2023 under the same or similar form of joint Sylvan and SylvanSync License Agreement which is referenced by and included in the 2024 Disclosure Document

Section VI – Key ratios, comparables, computations, and analyses for the Sylvan Learning franchise opportunity (exclusive content for Platinum subscribers)

Section I – Sylvan Learning Franchise Costs

• Initial License Fee:  $36,900
• Travel and Living Expenses While Attending Initial Training:  $1,400 to $2,400
• Initial Three Months’ Rent and Security Deposit:  $4,000 to $15,500
• Real Estate Improvements and Site Preparation:  $15,000 to $75,000
• Initial Inventory and Instructional Materials:  $2,750 to $3,050
• Specialized Furnishings:  $6,000 to $15,000
• Other Furniture and Miscellaneous Supplies:  $3,400 to $4,500
• Signage:  $2,000 to $8,000
• Marketing During Initial 3-Month Period When the Primary Center First Opens:  $10,000
• Computers and Other Hardware, Telephone, Internet Access, and Software:  $7,500 to $13,930
• FOA Annual Membership Fee for Initial Period:  $330
• Miscellaneous Supplies:  $15 to $150
• Hub Technology Platform:  $342
• Contact Center Participation:  $1,480 to $2,930
• QuickBooks or Equivalent Accounting Software:  $135 to $600
• Optional: Sylvan Edge:  $0 to $3,210
• Additional Funds – Three Months:  $9,500 to $35,000
• Total Estimated Sylvan Learning Franchise Costs:  $100,752 to $226,842

Section II – Sylvan Learning’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial License Fee:  $36,900
• Royalty:  16% of monthly gross revenues, with a total Minimum Annual Royalty of not less than $32,000
• Territory Advertising Minimum for Local Advertising and Co-op Expenditures:  8% of monthly gross revenues, capped at a maximum of $40,000 per territory per calendar year

Section III – Number of Franchised and Company-Owned Sylvan Learning Outlets

Franchised

2021

• Outlets at the Start of the Year:  466
• Outlets at the End of the Year:  474
• Net Change:  +8

2022

• Outlets at the Start of the Year:  474
• Outlets at the End of the Year:  468
• Net Change:  -6

2023

• Outlets at the Start of the Year:  468
• Outlets at the End of the Year:  474
• Net Change:  +6

Company-Owned

2021

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2022

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  5
• Net Change:  -1

2023

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

Section IV – News Updates on the Sylvan Learning Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Sylvan Learning Franchise (Item 19, 2024 FDD)

• With respect to the Sylvan System, as of December 31, 2023, Sylvan had 421 licensed territories in the United States, including a total of 459 Centers, which provided revenue reports to Sylvan.

• Of these, 307 licensed territories operated continuously during the 24 calendar months of 2022 and 2023 under the same or similar form of joint Sylvan and SylvanSync License Agreement which is referenced by and included in the 2023 Disclosure Document.

• This Item 19 does not include revenue from any licensed territory which operated during 2022 or 2023 pursuant to an earlier form of License Agreement which did not include the SylvanSync System offering; all 307 territories that are the subject of this Item 19 used SylvanSync in 2023.

• This Item 19 also does not include revenue from any territories that closed or opened during 2022 or 2023, and therefore were not open for the full 24 months of 2022 and 2023.

• The table below sets forth certain historic performance information for United States licensed territories that operated continuously throughout the 24 calendar months of 2022 and 2023 pursuant to a joint Sylvan and SylvanSync License Agreement. All such licensed territories are included in the following calculations.

• The term “licensee” as used in this Item 19 refers to a person or entity that entered into a joint Sylvan and SylvanSync License Agreement.

• The financial performance of company-owned territories is not included.

• The figures included in this Item 19 have not been audited.

2023 Sylvan Territory Gross Revenues by Quartile

Top 25% of Territories by Gross Revenue

• Number of Territories:  77
• Average Gross Revenues:  $815,079
• Number and Percent That Met or Exceeded Average:  24 / 31%
• Median Gross Revenues:  $688,803
• Highest Gross Revenues:  $2,286,964
• Lowest Gross Revenues:  $527,644

Mid-Upper 25% of Territories by Gross Revenue

• Number of Territories:  76
• Average Gross Revenues:  $432,048
• Number and Percent That Met or Exceeded Average:  39 / 51%
• Median Gross Revenues:  $433,156
• Highest Gross Revenues:  $523,730
• Lowest Gross Revenues:  $341,766

Mid-Lower 25% of Territories by Gross Revenue

• Number of Territories:  77
• Average Gross Revenues:  $293,283
• Number and Percent That Met or Exceeded Average:  41 / 53%
• Median Gross Revenues:  $294,502
• Highest Gross Revenues:  $339,622
• Lowest Gross Revenues:  $240,325

Bottom 25% of Territories by Gross Revenue

• Number of Territories:  77
• Average Gross Revenues:  $169,133
• Number and Percent That Met or Exceeded Average:  42 / 55%
• Median Gross Revenues:  $179,103
• Highest Gross Revenues:  $240,172
• Lowest Gross Revenues:  $40,616

• Gross revenue numbers in this table include Sylvan System and SylvanSync System gross revenues as well as Sylvan EDGE gross revenues and Ace it! gross revenues, if any, for the given territory.

• Not all franchisees delivered the Sylvan EDGE Program, which is optional. System-wide Sylvan EDGE Program gross revenues in 2023, as reported by franchisees, were $993,984.

• Sylvan offered the Ace it! Program as a separate franchise opportunity from January 2006 until January 2016; Sylvan began to offer the Ace it! Program as an optional product license in 2016. Not all franchisees delivered the Ace it! Program, which is optional. System-wide Ace it! Program gross revenues in 2023, as reported by franchisees, were $5,632,957.

• Of the 307 total territories included, 91% operated 1 Center within the territory, 8% operated two Centers, and 1% operated more than two Centers within the territory.

• Some licensed territories operated Satellites in the territory as part of the Licensed Business during this period. Satellites are optional. Generally, licensed territories which operate one or more Satellites generate more revenue than those which operate only one Center. You are not required to operate any Satellite in your territory.

• Sylvan offered substantially the same services to all of the 307 licensed territories included in the foregoing table, and substantially all of the licensed territories offered the same instructional services in reading, math, study skills, writing, and SAT/ACT test prep.

Section VI – Sylvan Learning Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️