Legal Tools
Should I Franchise
My Tutoring Business Now? Tutoring is a booming business. In the U.S., it is reportedly a $4.9 billion industry. It is considered to be relatively recession-resistant in that parents are reluctant to cut education services to help their children. While in-person tutoring is likely to continue to experience strong growth, online learning may be even stronger. The size of the online tutoring market in the U.S. has been estimated at $608 million with an average growth of 6.9 percent between 2014–2019. However, because of COVID-19, e-learning may grow even faster. For those who have an existing tutoring business, this may present an opportunity to consider franchising. Before moving forward, there are costs and benefits to be weighed as with any franchise. These issues should be considered in relation to how they specifically apply to a tutoring franchise.
Market size and location
“
If you will be offering in-person tutoring, then you will want to target franchisees in optimal markets with a high percentage of parents who can afford tutoring services. With online tutoring, you may have more flexibility in terms of the location of your franchisee. However, either way, you must comply with both federal and state franchise rules. Many states have their own requirements for filing and registration and they may vary depending on where the franchisor is domiciled, where the franchisee is domiciled or where the business will be located. You will need to consult an experienced franchise lawyer about compliance with these rules.
40 The Franchise Woman
by Julie Lusthaus
While in-person tutoring is likely to continue to experience strong growth, online learning may be even stronger. Staffing
Typically, tutors have an educational background. For added credibility, you may want to require that franchisees hire tutors with tutoring certifications from the National Tutoring Association, American Tutoring Association and other certifying bodies. If the franchise will have a physical location, franchisees will need to access a good pool of candidates in the area at an affordable price. Note that tutors may be considered “employees” rather than “independent contractors,” which means they are subject to wage, hour and other employment laws.
