25 Questions to Ask a Tutoring Franchisor Before You Sign

A tutoring franchise discovery process is designed to be persuasive. Discovery days are polished, success stories are real but selected, and the person answering your questions is usually paid to recruit. None of that is sinister. It just means the burden of asking hard questions sits with you.

Below are 25 questions to ask any tutoring franchisor before you sign, grouped into six areas. For each one I explain why it matters and what a good answer looks like. Ask them in writing where you can, keep the answers, and compare them with what current franchisees tell you. Where the answer should be in the disclosure document, I say so.

Questions about the tutoring franchise business model

1. How does a centre earn revenue: membership, casual bookings, packages or a mix? Why it matters: recurring membership revenue is more predictable than session-by-session sales and smooths seasonality. A good answer names the model, the average monthly fee and how many sessions a member attends. Our article on what drives tutoring franchise revenue explains why this matters.

2. What is the student-to-tutor ratio and how many sessions does one tutor run per hour? Why it matters: this determines tutor wages as a share of revenue, your largest variable cost. A good answer is specific and consistent with what franchisees report.

3. How many members does a centre need to cover fixed costs, and how long did your last five openings take to reach that number? Why it matters: this is the real break-even question. A good answer gives a number, a timeframe and the names of the franchisees who can confirm it.

4. What is your network's average monthly member retention and how do you measure it? Why it matters: small retention differences compound into very different annual results. A good franchisor tracks this centrally and will share it. A vague answer is a warning.

5. Which subjects and year levels does the curriculum cover, and how is it aligned to the local syllabus? Why it matters: parents ask this at every open day. A good answer explains the method, the assessment process and how progress is reported.

Questions about money

6. What is the total initial investment, line by line, including working capital? Why it matters: the franchise fee is often the smallest part. In the US this is Item 7 of the FDD; in Australia the disclosure document must set it out. Compare it against our guide to how much a tutoring franchise costs. Success Tutoring's figures are on the investment schedule page.

7. How are royalties calculated: percentage of revenue, fixed monthly fee or per student? Why it matters: structures that look cheap at 40 members can be expensive at 140. A good answer lets you model all three scenarios for the full term.

8. What does the marketing levy pay for, and how is spending reported to franchisees? Why it matters: brand funds can pay for lead generation or for head office overhead. A good answer includes an annual statement to franchisees. Under Australia's Franchising Code, marketing funds must be used for their specified purpose and reported on.

9. Are there technology, software, materials, training or renewal fees beyond the royalty? Why it matters: small recurring fees add up over ten years. A good answer is a complete list, which in the US is Item 6 of the FDD.

10. Do you provide any financial performance information, and does it include every operating unit? Why it matters: in the US, Item 19 is the only place a franchisor may make earnings claims, and Franchise Update Media's development surveys found that of franchisors who provide one, most disclose revenue and only about half disclose profitability. A good answer explains exactly which units are included and excluded. Outside the US, ask for the data and the methodology, and expect to confirm it through franchisee calls.

Questions about support and launch

11. Who handles site selection, lease negotiation and fit-out, and how many openings have they personally supported? Why it matters: the pre-opening period is where delays and overspending happen. A good answer names people and numbers. See how Success Tutoring approaches leasing and fit-out.

12. What is the standard timeline from signing to opening, and how many of your last ten openings met it? Why it matters: every week of delay is rent without revenue. A good franchisor tracks this and shares it without being pushed.

13. How does pre-opening marketing work, and how many members did your last five centres have on opening day? Why it matters: members signed before opening reduce your working capital risk more than any other factor. A good answer is a list of recent openings with day-one member counts you can verify. Our launch support page explains how Success Tutoring approaches this.

14. How do you help me recruit and train tutors, before opening and throughout the year? Why it matters: tutor quality drives retention, and you will hire continuously. A good answer includes recruitment templates, screening criteria and an on-demand tutor training platform.

15. What does owner training cover, how long is it, and what ongoing training exists? Why it matters: you need enrolment skills, operations and financial literacy, not just curriculum knowledge. A good answer includes a schedule and names the trainers. See our franchise training page for an example of what to expect.

16. Who is my day-to-day contact after opening, and how many franchisees does that person support? Why it matters: a field consultant with 60 centres cannot give you much time. A good answer gives a ratio and explains the escalation path to senior leadership.

Questions about territory and growth

17. How is my territory defined, how many school-age children does it contain, and what does exclusivity exclude? Why it matters: online enrolments, school contracts or company-owned centres can erode an "exclusive" territory. A good answer comes with a map, census data and the exact wording from the agreement. Success Tutoring publishes available locations by market.

18. If I perform well, do I have rights or first refusal over neighbouring territories, and what does a second centre cost? Why it matters: many owners' best returns come from the second and third centres. A good answer sets out multi-unit fees and conditions upfront. Our article on multi-unit tutoring franchise ownership covers how partners scale.

19. How many centres have opened, closed, been transferred or been bought back in the last three years? Why it matters: closures and transfers reveal more than openings. In the US this is Item 20 of the FDD. A good answer includes reasons, not just numbers.

Questions about the agreement

20. What is the initial term, how many renewal periods are there, and what are the conditions and fees for renewal? Why it matters: ten years passes quickly and renewal terms decide whether you keep what you built. A good answer is in the disclosure document and the agreement, and your lawyer should read both.

21. What are the transfer fees and conditions if I sell, and does the franchisor have a right of first refusal? Why it matters: exit value depends on how easy it is to sell. A good answer includes recent resale examples in the network.

22. What non-compete restrictions apply during and after the agreement? Why it matters: post-term restrictions can prevent you from running any tutoring business for a period. A good answer is specific about duration and geography and explains the reasoning.

23. Under what circumstances can the franchisor terminate the agreement, and what is the cure period? Why it matters: you need to know what counts as a breach and how long you have to fix it. A good answer is measured and matches the agreement.

Questions about culture

24. Can I have contact details for every franchisee in my region, including those who have left? Why it matters: a curated list of happy owners is marketing. A full list is due diligence. In the US, Item 20 must list former franchisees; elsewhere, a confident franchisor will share them.

25. How are decisions communicated to franchisees, and how have disputes been handled in the past? Why it matters: you are choosing business partners for a decade. A good answer describes the forums, the frequency and at least one example of a disagreement resolved well. Success Tutoring runs a flat model where partners deal directly with head office leadership; you can read partner accounts on our franchise stories page.

How to use these questions

Do not fire all 25 at a discovery day. Group them: the business model and money questions in your first detailed call, the support and territory questions once you have the disclosure document, and the agreement and culture questions alongside your lawyer's review. Write down each answer and check it against three sources: the disclosure document, current franchisees and former franchisees.

In the US you must receive the FDD at least 14 calendar days before signing or paying anything. In Australia, the Franchising Code of Conduct that took effect on 1 April 2025 also requires a 14-day waiting period after you receive the disclosure document. The UK has no franchise-specific legislation, so your lawyer's review of the agreement and your validation calls carry more weight. Use the time.

For a broader framework, see our 12-point checklist for choosing a tutoring franchise.

Frequently asked questions

What is the most important question to ask a tutoring franchisor?

If you could ask only one, ask how many members the last five centres had on opening day and how long each took to cover its fixed costs. It tests the marketing engine, the launch process and the honesty of the answer in a single question, and it can be verified with the franchisees named.

Should I ask a tutoring franchisor about earnings?

Yes, but understand the rules. In the US, a franchisor may only make earnings claims in Item 19 of the FDD, and if there is no Item 19 the sales team should not quote figures at all. Elsewhere, ask for data and methodology and treat anything you cannot verify with franchisees as marketing.

How many franchisees should I call before signing?

At least five, including one who opened in the last twelve months, one who has operated for three years or more, and one who has left the system. Ask each the same questions so you can compare answers.

Can I negotiate the franchise agreement?

Core terms such as royalties are usually fixed across the network. Territory boundaries, timing of fees during launch, and multi-unit terms are more often negotiable. Have a franchise lawyer review the agreement before you raise anything.

Next steps

If you want to put these questions to Success Tutoring, our Why us pages answer many of them in advance, and the process explains each step from first enquiry to opening day.

This article is general information, not financial or legal advice. Verify figures with the franchisor's current disclosure document and seek independent advice before investing.