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Recession Proof Niche Recurring Service | FHB-205

Dallas, Texas

This business has been well-established in a major city in northwest Texas since 2016, offering personalized tutoring for students of all ages. This location has won franchise awards in 2018 and 2020 for their revenue growth. There are multiple franchisees in the system who generate over $1 million in revenue per year. The top franchisee generates over $2 million in revenue annually from a single location (we estimate their net exceeds $800k annually).

This well-known franchise has hundreds of locations nationwide, providing continual support, training, advertising, and materials. Support from the national franchise includes software, testing materials, programming for students, and nationally recognized advertising campaigns. An average of 55 million students in schools from K-12, continually cycling through the school systems, offers a growing market for customers of this well-known tutoring franchise, in addition to services offered for adult learners.

This franchise is prominently located in a busy shopping center with high foot traffic that is a fixture in the local community. This location provides easy access and diversions for families who drop off students for tutoring and has the possibility of operating multiple units. The business has remained profitable throughout the COVID-19 epidemic because the service is considered essential by both the government and the parents. Revenue is expected to exceed $500,000 for the current year, approximately a 20% increase over the previous year.

No experience in the education space is necessary and the new owner will not have to do any tutoring in the long term. There is tremendous growth potential available through increasing business hours and focusing on sales and marketing efforts using word of mouth, direct mail, community involvement, advertisements, social media, Google AdWords, and working directly with local schools.

There is ongoing interest in examination preparation services due to changes that are being rolled out in 2022 in relation to requirements for universities for application and acceptance rates. The average student generates $3,000 to $8,000 in total revenue over a period of three to eight months. The business enrolls approximately one to two new students per week. Increasing the student enrollment rate by one additional new student per week would generate an additional $234,000 in revenue for the business.

The business works with an average of 50+ students, providing recurring revenue for the business. Staffed with a team of 20+ part-time tutors, and run by two full-time employees, the business offers work-life balance and is an excellent opportunity for a husband-and-wife team to work together, a semi-retired couple, a young entrepreneur, or a corporate executive with a strong marketing and/or management background. An ideal buyer is organized and strong in marketing functions and can execute the existing marketing processes the franchisor has created.

The current owner is in their late twenties and works a normal 40-hour workweek, with no previous industry or sales and marketing experience. The owners are planning on relocating out of the region and are looking for the right buyer to continue this tutoring center, which is established in the community.

This is an established business. This is not a new franchise or start-up opportunity.

Asking Price

$375,000

Gross Revenue

$418,451

Annual Cash Flow

$155,000 (Projected 2021)

Seller Financing

Negotiable

Inventory

$1,500

Inventory Included in price

Yes

Location

Dallas, Texas

Real Estate

Leased

Home Based

No

Relocatable

No

Franchise

Yes

Employees

2 FT | 21 PT

Year Established

2016

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