Buying a tutoring franchise can be a big mistake for some. One of my friends made that mistake and bought a tutoring franchise thinking that they can earn top dollar quickly. Firstly, this depends on the type of tutoring franchise. Is it a location based franchise or are you buying a franchise with a territory. If it is a location based tutoring franchise than you may have better luck. All you have to do is choose a good location and buy the franchise. This would be a good buy if the location is ideal.
The problem my friend made was buying an In-home tutoring franchise. This involved buying a specific sub-city or municipality location such at Toronto- Richmond Hill region. The problem in paying 25 to 50 K for a small region like that is that you are most likely going to get into turf wars with other franchisees. That is exactly what happened to my college. He purchased a region realizing that he had to spend over 15K in advertising for his specific region just to make 30K. Not only that, he realized that the other franchisees wanted to cross turfs just to make a few extra coins by advertising on classified ads in the turf they were not assigned to. So what did he do he took a 75K loss and decided to go back to the workforce.
So if you are planning on purchasing a tutoring franchise make sure you have purchased a good and vast location. a subdivision for 25K is not going to cut it and you are probably going to have to cut your losses and run. My Collegue mentioned it would have been more worth it if his boundry was larger and more vast. For example if he had Markham, Thornhill, and Richmondhill, it may have been worthwhile. Other than than he felt that the franchise owners were conducting a pyramid scheme of owing a tutoring franchise. They sell small chunks and make a quick 25 to 50 K while you are left with advertising between 15 to 40 k for such a small region that they give you. This is really difficult since 2007 the amount of tutoring agencies to compete with has grown substantially.