How Sylvan Learning’s Business Model Creates a One of a Kind Franchise Opportunity with the Lowest Fees in the Industry

As demand in the supplemental education segment of the franchising industry continues to grow, brands are competing for new and innovative ways to stand out from the competition. For Sylvan Learning , that competitive edge begins with its top tier programs—the brand’s 40+ years of experience combined with a focus on staying ahead of the latest trends both in and outside of the classroom continue to resonate with families across the country.

Part of what makes Sylvan’s business model so unique is that it’s all encompassing. The brand’s corporate team and franchisees have worked together to identify what local owners need in order to be successful, and set up the systems and processes that ensure those tools and resources are made available. That then means that on top of an affordable initial investment rate, Sylvan Learning franchisees are better prepared to see a profit than others who are working with the competition.

Unlike their competitors who charge a royalty rate and then also charge a fee for national marketing and numerous other fees, Sylvan Learning offers an all-in flat royalty rate of 16 percent that’s designed to save local owners money in the end while positioning them to bring in higher revenues than the competition. That rate includes payments to the brand’s national ad fund, mandatory student assessments and all online training resources, including e-learning courses and web conferences, as well as a full-time corporate team that helps source and secure contracts on behalf of franchisees.

“When looking at ways to enhance our business model, we discovered that brands in the education segment of the franchising industry—ourselves included—were nickel-and-diming franchisees. That really adds up for local entrepreneurs, so, we found a way to simplify the structure and ultimately lower the cost for the franchisees in our system,” said Jacob Jones, SVP of Finance for Sylvan Learning.

Sylvan Learning’s one of a kind business model also includes upgrades to its curriculum, providing franchisees with the best possible programs to offer both new and existing customers. That’s an especially strong competitive advantage for local owners now with the addition of the SylvanSync program, which allows the brand to make enhancements to its programs in real time as trends shift and new rules are introduced to classroom curriculums.

In addition to that cutting edge technology, Sylvan Learning franchisees also gain access to strong marketing support. The brand’s national advertising and marketing fund creates a road map on a national level that supports franchisees’ local store marketing efforts. That framework becomes a guide for franchisees who then take its strategies and apply them to their own online presence.

The benefits that come with Sylvan’s business model aren’t easily ignored by existing or aspiring candidates. According to Randy Way, president of Sylvan Learning’s Franchise Owners Association, the brand’s unique approach to building a strong franchise system makes a significant difference.

“Our business model is really all encompassing. That’s what makes the difference between Sylvan and the competition,” he said. “Everything is built into Sylvan’s system right off the bat. There are never going to be additional costs that come as a surprise—all of our training and support is available for franchisees to use as they need it.”

That robust support system includes both initial and ongoing training, as well as access to all that the brand’s operations, information and technology and operations help desks have to offer. Sylvan franchisees also gain a competitive edge through the company’s commitment to developing additional products and resources for franchisees, which then in turn become additional revenue opportunities for the brand’s growing network of owners.

When Sylvan first started out over 40 years ago, I’d put us what I call the remedial tutoring business. But over the past five or six years, we’ve worked incredibly hard to expand our product base and increase the use of technology in our learning programs. Take our variety of classes—we cover the basics like math, reading, study skills and test prep in addition to diving into the STEM arena.

That’s something that none of our competitors offer, and it’s a huge differentiator. Sylvan is also the only brand that uses technology to deliver the vast majority of our core programs. We’re constantly continuing to expand more and more into online content, ultimately making our program more convenient for students, teachers and families.

From a business perspective, Sylvan has also recently introduced a new business model that allows our franchisees to become more profitable. Our new licensing agreement gives our local owners a smaller footprint. That means that our franchisees are no longer limited to delivering services within our centers. They can also extend our programs into schools, libraries and community centers, making the Sylvan brand easily accessible for families across the country.

The one thing that technology allows us to do now—even more so than in the past—is to individualize our program for a child. Within our typical core program, students are first assessed to determine where they need the most help. Our teachers then deliver a unique plan that tailors lessons to a child’s specific problem areas. There isn’t anything about our model that’s generic—everything we do is designed to help each individual student reach their goals, whether that’s keeping up with a certain grade level or getting ahead.

The role that technology plays in the education landscape is changing rapidly, but we have the tools at Sylvan to stay on top of the trends and integrate new practices into our system. We go above and beyond to ensure that we’re offering students the best possible resources to help them succeed in the classroom.

We’re taking the initiative to expand our services and really go above and beyond when it comes to the Sylvan programs that students have access to. Right now, our paper-based Math Edge program is available to students in first through sixth grade. But we’re currently working out how to move that program online, in addition to rolling out a new digital Algebra Edge