What should I ask before buying a resale tutoring franchise?
Before buying a resale tutoring franchise, ask what the franchisor controls (curriculum, software, territory), who hires and manages tutors, whether the franchisor must approve you as the buyer, and what the franchise agreement lets you change. Your lawyer should review the disclosure and the agreement.
A resale tutoring franchise is an existing unit sold by its current franchisee. You take over the students and the staff, but you also take over the rules of the franchise system. Those rules shape what you can teach, where you can operate and who may buy. Start with what you actually own when you buy a franchise, then ask the questions below.
Curriculum, software and branding
Ask which lesson materials and software the franchisor supplies, what you pay to use them and whether they can change. If assessments or progress reports come from the franchisor’s system, find out whether student records stay with the unit or with the franchisor. Ask what happens to them if you leave.
Territory and the school catchments
Ask exactly what area the unit serves and whether another unit, or online delivery by the franchisor, can reach the same families. Many families choose a centre based on nearby schools, so ask which schools feed the unit and whether that has changed recently.
Tutors and who manages them
The franchisee usually hires, trains and schedules the tutors. Find out how many are on the team, how the current owner recruits them and what the franchisor requires of them. Tutor loyalty can matter as much as the brand, so meet the team before you commit.
Approval and the paperwork
The franchisor often has to approve a buyer and may require training or charge a transfer cost. Ask early what the process involves and how long it usually takes. The franchise agreement and any disclosure documents carry legal consequences, so have your lawyer read them and explain what you would be signing. A lender will also want to see them.
Related reading
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Due diligence
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Canadian Franchise AssociationIndustryLookForaFranchise.ca - The Official Online Franchise Directory of the CFA
- 03Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
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