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ENGENIUS LEARNING CENTER

Company Information

1002 Byerley Avenue San Jose, CA 95125-2507

[email protected]

We are a California limited liability company formed on January 15, 2019 to franchise children’s learning center businesses using the name ENGENIUS LEARNING CENTER ("Centers"). We do not do business under any other name. Our principal business address and telephone number are 1002 Byerley Avenue, San Jose, CA 95125 2507; tel: (408) 495 3800. Our agents for service of process are listed on Exhibit E. We have offered franchises for Centers since May 15, 2019

We offer franchises for the operation of Centers which will operate children's learning centers which specialize in after-school tutoring services and test preparation. Our founders are Mike and Kerry Flynn, who opened tutoring centers over 25 years ago. We have developed a unique system of providing tutoring and learning services to children who need extra help in school, college admissions testing, as well as college counseling (the “System”). Each student is treated as an individual so that he or she can most benefit from ENGENIUS LEARNING CENTER assistance. The System is based on having one tutor working with no more than three students at one time at one table (“Learning Table”). You may start with only one Leaning Table and add Learning Tables later if You receive Our prior written approval in advance. Your tutors must be experienced and dedicated to helping children. They must be well trained and be able to make the process fun and motivating for each child. The goal is for each child to become an independent learner. We and the Company have also developed an effective marketing system for these Centers, each of which will use the ENGENIUS LEARNING CENTER trademark and other designated trademarks, trade names, service marks and logos (“Marks”). A typical Center will be approximately 500 square feet to 1,500 square feet in size. The exact size depends on the demographics of its trade area and what is available for rental. Each Center will typically be located in a small shopping center or strip center which can be easily found and accessed. Operating hours are typically in the afternoon and evenings as well as week ends. Each Center will use Our System and operate according to Our standards, specifications, operating procedures and rules as contained in Our Operations Manual (the “Manual”).

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

6/10

Investment Accessibility

6/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $5,000 Maximum: $20,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $40,000 Maximum: $350,000

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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