Sylvan Learning, a provider of supplemental education services to students in grades K-12, plans to more than triple its presence in metro Atlanta, the company said Monday.
The company has eight centers in the metro area but is seeking franchisees to increase the number to 28 over the next five years, and expand locations to 17 counties.
According to its annual outlook, the International Franchise Association expects the number of franchise establishments to grow by 1.7 percent this year, compared with 1.4 percent last year. Employment growth is expected to remain steady at 2.3 percent
“With school budget cuts resulting in larger class sizes and fewer resources, and with increased competition to get into colleges of choice, more families are seeking the personal learning experience that can only be found at Sylvan,” said Scott Hurlock, vice president of franchise development, in announcing the franchise effort.
The largest share of franchises in the U.S. are in the fast-food industry (20 percent), followed by personal services (14 percent), retail products and services (13 percent), business services (13 percent) and real estate (12 percent), according to the IFA’s Franchise Business Outlook for this year.
Baltimore-based Sylvan, like other chains, have start-up requirements. Prospective franchisees must have a minimum net worth of at least $250,000 and minimum liquid assets of $75,000. Total initial investment ranges from $159,291 to $282,213, depending on various factors, including the cost of real estate. The initial cost includes a one-time franchise fee of $48,000 for new centers in metro Atlanta.
Sylvan also said metro Atlanta franchisees pay monthly royalty fees of 8 to 9 percent of revenue and a marketing investment of 12 to 15 percent of revenue.
Franchising start-up costs vary, however, not only among Sylvan and its competitors, but also across other businesses. Burger 21, a Tampa fast-casual restaurant chain, for example, announced franchise agreements last month for new restaurants in metro Atlanta and efforts to attract more franchisees in the months ahead.
Burger 21 franchisee candidates must have a minimum net worth of $500,000 and at least $200,000 in liquid assets. They can expect to invest about $414,495 to $832,495 to open a restaurant, in addition to an initial $40,000 franchise fee.
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