How much does it cost to open a Sylvan Learning franchise?

The total initial investment for a Sylvan Learning franchise ranges from $107,922 to $239,012. This includes the franchise fee of $36,900, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Sylvan Learning franchise?

Sylvan Learning franchisees pay a 11.0% royalty fee and a 5.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Sylvan Learning franchise?

Based on Item 19 financial performance data, the median Sylvan Learning franchise generates $426,547 in annual revenue. Estimated owner profit is approximately $17,062.

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Education & Tutoring 478 Units

Sylvan Learning Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$107,922 – $239,012

Franchise Fee

$36,900

Royalty Rate

11.0%

Initial Investment Range

Low: $107,922 High: $239,012

The total initial investment to open a Sylvan Learning franchise ranges from $107,922 to $239,012, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $36,900.

Midpoint estimate: $173,467

Franchise Fee

$36,900

One-time initial fee

The Sylvan Learning franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Sylvan Learning brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

11.0%

of gross revenue

Ad/Marketing Fund

5.0%

of gross revenue

Total Ongoing Fee Burden: 16.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	11.0	PCT	Quarterly minimum Royalty Fee of $8,000. ACE IT! program assessed at 12% of Gross Sales and credited towards minimum. Minimum waived for first six months after grand opening of Primary Center. Due on the 15th of the month.
ACE IT! Royalty Fee	12.0	PCT	Assessed on revenue generated under the ACE IT! program. Credited towards meeting the minimum Royalty Fee assessment.
NAF Contribution	5.0	PCT	National Advertising Fund contribution. May be modified periodically with 30 days' notice. NAF contributes up to 15% of monthly balance to Unleashed Fund for marketing all Affiliated Brands. Due on the 15th of the month.
Local Marketing Expenditure	6.0	PCT	Greater of 6% of monthly Gross Sales or $1,500 per month. May be modified periodically with 30 days' notice. As incurred.
Advertising Cooperative	N/A	VARIABLE	Currently not established. If established, determined by majority vote. Contributions credited toward Local Marketing Expenditure. Cannot exceed Local Marketing Expenditure amount without 51% franchisee consent.
Technology Fee (Hub Technology Platform fee)	114.0	FIXED	Currently $114 per Center per month; up to $750 per month. Subject to CPI adjustment annually. May be adjusted with 30 days' notice. Planning to phase out Hub Platform and replace with proprietary technology stack. Due on the 15th of each month. Non-refundable.
Dashboard Access License Fee	10.0	FIXED	Waived for first license. $10 per month per additional license. Pass-through fee from Microsoft with no markup. Monthly upon invoice.
Call Center Fee - Model A	N/A	VARIABLE	Required use of call center for customer support, booking, and upselling. Model A or B depending on call volume. Due on the 15th of the month.
Call Center Fee - Model B	N/A	VARIABLE	Required use of call center for customer support, booking, and upselling. Model A or B depending on call volume. Due on the 15th of the month.
Initial Training Fee	500.0	FIXED	None for first 2 individuals. $500 per day for each additional person. $1,000 Initial Training Fee if franchisee does not timely attend initial training and out-of-schedule training is required. Upon invoice.
Additional Training	500.0	FIXED	Currently $500 per day plus reimbursement of actual costs. For additional/remedial training, additional programs, or periodic mandatory trainings. Upon invoice.
Additional On-Site Assistance	500.0	FIXED	Currently $500 per day plus actual costs. Payable if franchisee requests on-site representative. No fee for first Sylvan business but may be charged for second or subsequent businesses. Upon billing.
Split Territory Fee	N/A	VARIABLE	Payable to split Protected Area into two territories for second location. Subject to conditions including training, compliance, and territory standards. Upon invoice.
Conference Fee	1000.0	FIXED	Currently $1,000 per attendee; up to $1,500 subject to CPI adjustment. Mandatory attendance at annual conference. $1,000 materials fee if not attending. Attendee also responsible for travel, lodging, wages. Upon billing.
Compliance Review Fee	N/A	VARIABLE	Actual cost including purchases made as part of mystery shop, audit, or customer satisfaction program. Upon invoice.
Gift Card and Loyalty Program Fees	N/A	VARIABLE	Currently $0. Must participate in Customer Card Programs. Up to 7% administrative fee retained on gift card redemption. As incurred.
Renewal Fee	6000.0	FIXED	Payable only if exercising successor term option and satisfying renewal conditions. Upon invoice.
Holdover Fee	250.0	FIXED	Payable if operating after expiration but desire to renew without signed renewal Franchise Agreement. Upon invoice.
Transfer Fee	6000.0	FIXED	Multiplied by number of Centers operated in Protected Area. $2,500 training fee waived if transferring to existing franchisee in good standing. Plus reimbursement of legal and professional expenses. Upon invoice.
Resale Program Fee	N/A	VARIABLE	Payable only if electing to participate in Resale Participation Program. In addition to Transfer Fee. Prior to closing.
Interest	18.0	PCT	Lesser of 18% per year or maximum lawful rate in franchisee's state (California: 10%). Charged when Royalty Fee or other payment not paid when due or audit reveals underpayment. Upon demand.
Nonsufficient Funds Fee	100.0	FIXED	$100 per occurrence, not to exceed maximum allowed by law. For insufficient funds in ACH debit account. Upon demand.
Audit Costs	N/A	VARIABLE	Payable if audit necessary due to failure to provide reports/records timely or if understatement of Gross Sales greater than 2%. Upon invoice.
Indemnification	N/A	VARIABLE	Payment for all losses and expenses franchisor incurs in connection with third-party claims requiring indemnification. Upon demand.
Liquidated Damages	N/A	VARIABLE	Payable only if franchisee defaults and franchisor terminates Franchise Agreement. If operating less than 12 months, based on system-wide Royalty Fee average for termination month. On demand.
Public offering or private placement of securities	N/A	VARIABLE	Payable only if franchisee offers securities in public or private offering. Upon demand.
Payment Processing Fee	N/A	VARIABLE	Pro rata share of system-wide fee from designated payment card processor. Must use designated processor. Payable to franchisor.
Transfer Fee (Controlling Interest) - Development Agreement	25000.0	FIXED	Under Development Agreement. Payable only if transferring obligations to approved third-party. Upon demand.
Administrative Fee (Non-Controlling Interest) - Development Agreement	3500.0	FIXED	Under Development Agreement. Limited to one time per rolling 12-month period. Otherwise subject to Controlling Interest Transfer Fee. Upon demand.
Liquidated Damages - Development Agreement	N/A	VARIABLE	Under Development Agreement. Payable only if franchisee defaults and franchisor terminates Development Agreement. Upon demand.

What You Get

Financial Performance (Item 19)

Median Revenue

$426,547

per year, per location

Profitability Estimate

Estimated Owner Profit

$17,062

per year

Profit Margin

4.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 10.2 years

Based on midpoint investment of $173,467 and estimated annual owner profit of $17,062.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.0%

Low risk — below industry average

Net Unit Growth

+3 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	475	+18	—	—	469
2023	469	+18	—	—	473
2024	473	+24	-4	—	478

Is a Sylvan Learning Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Sylvan Learning franchise opportunity:

Overall Score

68/100

Moderate opportunity

Est. Payback Period

10.2 yrs

Longer payback

Risk Level

Low

1.0% annual closure rate

Sylvan Learning shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $426,547 and a combined fee burden of 16.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.