Preview: figures awaiting verification
Some numbers on this page haven't been checked against their sources yet.
Tutoring Business
A desk-based business that turns your own subject knowledge into hourly sessions, online or in students' homes, with very little to buy up front.
Figures last verified October 30, 2026
$70 – $119*Pending verificationSourcesCalifornia Secretary of State — LLC forms and fees (Form LLC-1)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California DOJ — Applicant Fingerprint Processing Fees (fee sheet dated August 17, 2012, subject to change)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 2 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
Startup cost
Coming soon
Time to first revenue
Low
Difficulty
Low
Physical demand
Yes
Can run solo
School year; slower in summer
Seasonality
* Startup cost excludes budget lines we haven't sourced yet.
Risk Meter
Eight factors from this guide's own data, each scored 1 (lowest risk) to 5 (highest). Every score shows why.
Overall risk
Moderate
2.5 out of 5
Average of 6 of 8 factors, weighted equally. 1 is the lowest risk and 5 the highest. It measures risk, not how much you'll earn, and it isn't a prediction. How we score risk.
Money at risk
Not scoredAt least $119
5 startup lines aren't sourced yet, so the real total is higher. We'll score this once the budget is complete.
Time to earn it back
Not scoredNot scored yet
Some startup or operating cost lines aren't sourced yet, so a payback time would look shorter than it really is.
Franchise closure rate
2 / 53.5% a yearPending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Closures = terminations + non-renewals + outlets that ceased operations, divided by franchised outlets at the start of the year.
Average of 3 brands: Club Z! In-Home & Online Tutoring 1.2% (2025); Mathnasium (learning center) 1.5% (2025); Huntington Learning Center 7.7% (2025). Our calculation from each FDD's Item 20.
Loan default rate
5 / 513.5% vs 7.2% for all industriesPending verificationSourceSBA 7(a) FOIA loan-level data, files as of September 30, 2026 (our count by NAICS code)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Charged off = the SBA wrote off the unpaid balance after the borrower stopped paying. An industry code can include businesses unlike this one.
64 of 475 SBA 7(a) loans to Exam Preparation and Tutoring (NAICS 611691), approved FY2010–2019, were charged off. Our count from the SBA's loan-level data; 46 loans were still open, so the final rate may be slightly higher.
Demand trend
5 / 5ShrinkingPending verificationSourcesU.S. Census Bureau — County Business Patterns 2019, U.S. file (cbp19us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026U.S. Census Bureau — County Business Patterns 2023, U.S. file (cbp23us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026
Exam preparation and tutoring (NAICS 611691) employer establishments −1.2% (9,937 to 9,820) vs +5.1% for all industries, 2019–2023.
Licensing and rules
1 / 5Light
No state tutoring license; a city or county business license, with optional fingerprint background checks for tutors (see Licensing).
Customer concentration
1 / 5Many customers
Many families pay for lessons; losing one barely matters.
Physical demand
1 / 5Low
From the guide's at-a-glance rating; see the risks section for details.
Franchise vs. Independent
Same type of business. Two very different paths.
| Franchise (3 brands) | Independent | |
|---|---|---|
| Franchise fee | $19,750 – $49,000Pending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Range across 3 franchise brands. | $0 |
| Initial investment | $40,975 – $340,632Pending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7 estimated initial investment (includes the franchise fee), across 3 brands. | $70 – $119*Pending verificationSourcesCalifornia Secretary of State — LLC forms and fees (Form LLC-1)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California DOJ — Applicant Fingerprint Processing Fees (fee sheet dated August 17, 2012, subject to change)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 2 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded. |
| Ongoing royalties | 6% – 10% of revenuePending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Percent of gross revenue, across 3 brands. | None |
| Operating costs (5 years) | $10,301Pending verificationSourcesInsureon — cost of insurance for education consultants(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026California Franchise Tax Board — Limited liability company(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Zoom — plans and pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026TutorBird — pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Five years of the operating costs we have sourced so far (insurance, software, fees), charged to both paths. | $10,301 |
| Brand, training, and support | Included | You build your own |
| 5-year total cost | $80,760 – $491,243 | $10,371 – $10,420* |
Franchise fee
- Franchise (3 brands)
- $19,750 – $49,000Pending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Range across 3 franchise brands.
- Independent
- $0
Initial investment
- Franchise (3 brands)
- $40,975 – $340,632Pending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7 estimated initial investment (includes the franchise fee), across 3 brands.
- Independent
- $70 – $119*Pending verificationSourcesCalifornia Secretary of State — LLC forms and fees (Form LLC-1)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California DOJ — Applicant Fingerprint Processing Fees (fee sheet dated August 17, 2012, subject to change)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 2 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
Ongoing royalties
- Franchise (3 brands)
- 6% – 10% of revenuePending verificationSourcesClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Mathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Huntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Percent of gross revenue, across 3 brands.
- Independent
- None
Operating costs (5 years)
- Franchise (3 brands)
- $10,301Pending verificationSourcesInsureon — cost of insurance for education consultants(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026California Franchise Tax Board — Limited liability company(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Zoom — plans and pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026TutorBird — pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Five years of the operating costs we have sourced so far (insurance, software, fees), charged to both paths.
- Independent
- $10,301
Brand, training, and support
- Franchise (3 brands)
- Included
- Independent
- You build your own
5-year total cost
- Franchise (3 brands)
- $80,760 – $491,243
- Independent
- $10,371 – $10,420*
5-year totals assume $24,960–$46,800 in yearly revenue (our forecast presets at full volume), the same sourced operating costs (insurance, software, fees) on both paths, and both the lean and professional independent plans. Franchise investment figures come from each brand's disclosure (FDD Item 7) and already include the franchise fee. * Excludes independent startup lines we haven't sourced yet. Adjust the assumptions.
What franchisees report taking in
From each brand's own disclosure (FDD Item 19), copied exactly. These are gross sales before royalties and costs, not profit, and not a promise of what you will earn.
Club Z! In-Home & Online Tutoring
Item 19 gives no revenue figures: it reports 2025 private-student counts per franchisee (grouped by hours the owner works) and the hourly rates franchisees pay tutors and charge clients.
- Average number of private students, 2025, franchisees working 35+ hours a week (166 of 319 franchises; a count, not revenue)52Pending verificationSourceClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Table One. 70 of 166 (42%) reached this average. Not revenue or profit. FDD Item 19, as reported by franchisees and not audited. Some outlets have reached these figures; your results may differ.
- Median number of private students, 2025, same 166 full-time franchisees (a count, not revenue)47Pending verificationSourceClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Table One. Not revenue or profit. FDD Item 19, as reported by franchisees and not audited. Some outlets have reached these figures; your results may differ.
- Average hourly rate clients paid for high-school tutoring (319 franchises, rates posted as of March 2025)$57Pending verificationSourceClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Table Six; per hour, not yearly. The FDD says these rates were posted in its software as of March 2025. FDD Item 19, as reported by franchisees and not audited. Some outlets have reached these figures; your results may differ.
- Average hourly pay to high-school-level tutors (319 franchises, rates posted as of March 2025)$25Pending verificationSourceClub Z! 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Table Five; per hour. This is a cost to the franchisee, not income. FDD Item 19, as reported by franchisees and not audited. Some outlets have reached these figures; your results may differ.
Mathnasium (learning center)
Item 19 reports 2025 average and median gross receipts by quartile for 914 U.S. centers open at least 12 months, and also lists average and median expenses for those centers.
- Average 2025 gross receipts per center (914 franchised U.S. centers open 12+ months; gross sales, not profit)$384,874 a yearPending verificationSourceMathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026355 of 914 (39%) met or exceeded this average. FDD Item 19, Table 1. Gross receipts before royalties and all expenses — not profit. Covers 914 U.S. centers open and run by the same franchisee for 12 months or more at December 31, 2025; excludes 129 newer centers and 4 affiliate-owned centers. Some outlets have sold this amount; your results may differ.
- Median 2025 gross receipts per center (same 914 centers; gross sales, not profit)$326,428 a yearPending verificationSourceMathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, Table 1. Gross receipts before royalties and all expenses — not profit. Covers 914 U.S. centers open and run by the same franchisee for 12 months or more at December 31, 2025; excludes 129 newer centers and 4 affiliate-owned centers. Some outlets have sold this amount; your results may differ.
- Average 2025 gross receipts, top quarter of centers (229 centers; gross sales, not profit)$693,314 a yearPending verificationSourceMathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, Table 1. Gross receipts before royalties and all expenses — not profit. Covers 914 U.S. centers open and run by the same franchisee for 12 months or more at December 31, 2025; excludes 129 newer centers and 4 affiliate-owned centers. Some outlets have sold this amount; your results may differ.
- Average 2025 gross receipts, bottom quarter of centers (229 centers; gross sales, not profit)$176,306 a yearPending verificationSourceMathnasium 2026 FDD (Minnesota CARDS), issued April 30, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, Table 1. Gross receipts before royalties and all expenses — not profit. Covers 914 U.S. centers open and run by the same franchisee for 12 months or more at December 31, 2025; excludes 129 newer centers and 4 affiliate-owned centers. Some outlets have sold this amount; your results may differ.
Huntington Learning Center
Item 19 reports 2025 gross revenue for the 232 franchised Huntington centers open all year, as an average, median, quartiles and halves.
- Average 2025 gross revenue per center (232 franchised centers open all of 2025; gross sales, not profit)$609,454 a yearPending verificationSourceHuntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 202694 of 232 (41%) were above this average. FDD Item 19, from data franchisees entered in the franchisor's software, not audited. Gross revenue before royalties and all expenses — not profit. Covers 232 franchised centers open all of 2025; excludes company-owned centers and 21 franchised centers not open all year. Some outlets have earned this amount; your results may differ.
- Median 2025 gross revenue per center (same 232 centers; gross sales, not profit)$533,106 a yearPending verificationSourceHuntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from data franchisees entered in the franchisor's software, not audited. Gross revenue before royalties and all expenses — not profit. Covers 232 franchised centers open all of 2025; excludes company-owned centers and 21 franchised centers not open all year. Some outlets have earned this amount; your results may differ.
- Average 2025 gross revenue, top quarter of centers (58 centers; gross sales, not profit)$1,115,433 a yearPending verificationSourceHuntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from data franchisees entered in the franchisor's software, not audited. Gross revenue before royalties and all expenses — not profit. Covers 232 franchised centers open all of 2025; excludes company-owned centers and 21 franchised centers not open all year. Some outlets have earned this amount; your results may differ.
- Average 2025 gross revenue, bottom quarter of centers (58 centers; gross sales, not profit)$247,465 a yearPending verificationSourceHuntington Learning Center 2026 FDD (Minnesota CARDS), issued April 16, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from data franchisees entered in the franchisor's software, not audited. Gross revenue before royalties and all expenses — not profit. Covers 232 franchised centers open all of 2025; excludes company-owned centers and 21 franchised centers not open all year. Some outlets have earned this amount; your results may differ.
What a franchise does give you
Franchises cost more, but the fees buy real things. Weigh them honestly.
- Home-based in-home and online model, with no office lease assumed in the FDD
- Initial training for you and up to two more people
- Franchisor call center books appointments and runs live chat for you
- Required scheduling, billing and payroll software is provided
- A protected territory sized by population
- A well-known math-only curriculum and teaching method
- Initial training program
- Centralized digital and local marketing program
- Discounts for veterans and experienced educators
- A long-established tutoring and test-prep brand
- Initial and ongoing training and technology services
- Launch marketing run on your behalf
- Franchisor call center for incoming inquiries
Going independent means
- You keep 100% of what you earn after costs — no royalties.
- You build your own brand, systems, and customer base.
- You need more self-reliance, especially in the first year.
Startup Budget
One-time costs to launch, from cited sources. Totals are added up from the lines below.
| Item | Low | Mid | High |
|---|---|---|---|
| Laptop or desktop computer with webcam | Data coming soon | ||
| LLC filing (California Articles of Organization, Form LLC-1)Pending verificationSourceCalifornia Secretary of State — LLC forms and fees (Form LLC-1)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Secretary of State filing fee for Form LLC-1. | $70 | $70 | $70 |
| Simple website | Data coming soon | ||
| Marketing launch (local listings, flyers for schools and libraries) | Data coming soon | ||
| Total (sourced lines only) | $70 | $70 | $70 |
Share of mid estimate
- LLC filing (California Articles of Organization, Form LLC-1)100%
Budget spreadsheet
Every line with its sources, included in the complete kit.
The total leaves out 3 lines we haven't sourced yet. We don't guess.
24-Month Forecast
An example to plan with. Every assumption is yours to change.
This is an estimate, not a prediction
Ticket is the low end of Thumbtack's national math average for a one-hour session. Sessions per week, ramp-up, the 5% for payment fees and materials, and the summer dip are our assumptions, not operator data. Change any assumption to match your market. Your results will differ.
- Break-even
- Month 1
- Year-1 revenue
- $18,233
- Year-2 profit
- $21,648
Show monthly table
| Month | Jobs | Revenue | Costs | Profit | Cumulative cash |
|---|---|---|---|---|---|
| 1 (Mar) | 14.3 | $572 | $201 | $371 | $301 |
| 2 (Apr) | 19.7 | $787 | $211 | $575 | $877 |
| 3 (May) | 27.3 | $1,092 | $227 | $865 | $1,742 |
| 4 (Jun) | 16.6 | $663 | $205 | $458 | $2,200 |
| 5 (Jul) | 16.3 | $650 | $205 | $446 | $2,645 |
| 6 (Aug) | 29.9 | $1,196 | $232 | $964 | $3,610 |
| 7 (Sep) | 46.5 | $1,859 | $265 | $1,594 | $5,204 |
| 8 (Oct) | 56.5 | $2,262 | $285 | $1,977 | $7,180 |
| 9 (Nov) | 62.4 | $2,496 | $297 | $2,199 | $9,380 |
| 10 (Dec) | 52.0 | $2,080 | $276 | $1,804 | $11,184 |
| 11 (Jan) | 57.2 | $2,288 | $286 | $2,002 | $13,185 |
| 12 (Feb) | 57.2 | $2,288 | $286 | $2,002 | $15,187 |
| 13 (Mar) | 57.2 | $2,288 | $286 | $2,002 | $17,188 |
| 14 (Apr) | 57.2 | $2,288 | $286 | $2,002 | $19,190 |
| 15 (May) | 62.4 | $2,496 | $297 | $2,199 | $21,389 |
| 16 (Jun) | 31.2 | $1,248 | $234 | $1,014 | $22,403 |
| 17 (Jul) | 26.0 | $1,040 | $224 | $816 | $23,219 |
| 18 (Aug) | 41.6 | $1,664 | $255 | $1,409 | $24,628 |
| 19 (Sep) | 57.2 | $2,288 | $286 | $2,002 | $26,629 |
| 20 (Oct) | 62.4 | $2,496 | $297 | $2,199 | $28,828 |
| 21 (Nov) | 62.4 | $2,496 | $297 | $2,199 | $31,028 |
| 22 (Dec) | 52.0 | $2,080 | $276 | $1,804 | $32,832 |
| 23 (Jan) | 57.2 | $2,288 | $286 | $2,002 | $34,833 |
| 24 (Feb) | 57.2 | $2,288 | $286 | $2,002 | $36,835 |
Pricing
What customers typically pay, from large-sample cost data.
What customers pay
- Math tutoring, per hour (national average)$40 – $50Pending verificationSourceThumbtack — math tutors in Los Angeles, CA (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
- Geometry tutoring, per hour (national average)$50 – $60Pending verificationSourceThumbtack — math tutors in Los Angeles, CA (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
- Reading and writing tutoring, per hour (national average)$40 – $60Pending verificationSourcesThumbtack — math tutors in Los Angeles, CA (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Thumbtack — local tutors in Dallas, TX (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
- Spanish tutoring, per hour (national average)$30 – $40Pending verificationSourceThumbtack — local tutors in Dallas, TX (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
- SAT prep, per hour (national average)$70Pending verificationSourceThumbtack — math tutors in Los Angeles, CA (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
- ACT and intensive test prep, per hour (national average)$70 – $100Pending verificationSourcesThumbtack — math tutors in Los Angeles, CA (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Thumbtack — local tutors in Dallas, TX (national averages in FAQ)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Thumbtack national average; no published sample size.
What similar businesses take in
Context only, not a promise of what you will earn. Government figures cover every business in the industry; guide figures are rougher. Tap the source icon to see which is which. These are revenue, before costs.
- Average yearly receipts per tutoring and exam-prep firm with fewer than 5 employees (NAICS 611691, U.S. employer firms, 2022)$188,081 a yearPending verificationSourceU.S. Census Bureau — Statistics of U.S. Businesses 2022, U.S. and states, 6-digit NAICS (us_state_6digitnaics_2022)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census table: $851,821,000 in receipts across 4,529 firms, rounded to the nearest dollar. Receipts are gross revenue, not profit. NAICS 611691 (Exam Preparation and Tutoring) includes learning centers and test-prep companies as well as private tutors. Shown for context only — not a promise or prediction of your results.
- Average yearly receipts per tutoring and exam-prep firm with fewer than 5 employees in California (NAICS 611691, employer firms, 2022)$221,889 a yearPending verificationSourceU.S. Census Bureau — Statistics of U.S. Businesses 2022, U.S. and states, 6-digit NAICS (us_state_6digitnaics_2022)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census table: $195,706,000 in receipts across 882 California firms, rounded to the nearest dollar. Receipts are gross revenue, not profit. NAICS 611691 (Exam Preparation and Tutoring) includes learning centers and test-prep companies as well as private tutors. Shown for context only — not a promise or prediction of your results.
- Average yearly receipts per nonemployer (solo, no payroll) educational services business (NAICS 611, all educational services, U.S., 2024)$18,746 a yearPending verificationSourceU.S. Census Bureau — Nonemployer Statistics 2024, U.S. file (nonemp24us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census file: $17,334,332,000 in receipts across 924,679 nonemployer businesses, rounded to the nearest dollar. The Census nonemployer file reports this sector only at the broad NAICS 611 level, so it covers all solo educational services (music, sports and driving instructors as well as tutors). Many are part-time. Receipts are gross revenue, not profit. Shown for context only — not a promise or prediction of your results.
Key Risks and How to Manage Them
Summer and holiday slowdowns
Most families book tutoring during the school year. Sessions often drop in summer and around holidays.
How to manage it: Offer summer catch-up, test-prep and next-grade preview packages, and keep a cash reserve from the busy months.
Income is capped by your own hours
Solo, you can only sell the hours you teach, and the busiest hours are after school and on weekends.
How to manage it: Raise rates as your reviews grow, sell multi-session packages, and add small-group sessions or other tutors when demand allows.
Working with children
Parents expect background checks, and any complaint involving a child is serious for a small business.
How to manage it: Get fingerprint background checks for yourself and every tutor, keep sessions in open areas or recorded online with parent consent, and carry professional liability insurance.
Tutors as employees, not contractors
Under California's AB 5 test, tutors who teach for your tutoring company will usually count as employees, which adds payroll taxes and workers' compensation.
How to manage it: Budget for payroll and workers' comp before hiring, and get advice from an employment lawyer or accountant before using contractors.
Competition from online platforms
Large online marketplaces and low-cost tutors put pressure on hourly rates, especially for online sessions.
How to manage it: Specialize in a subject or exam you know well, build referrals through schools and parents, and compete on results and communication rather than price.
Evening hours and screen fatigue
The physical demand is low, but long blocks of evening sessions and video calls can be tiring.
How to manage it: Cap your daily sessions, build in breaks, and set firm cancellation rules.
Licensing by State
Requirements vary by state and local jurisdiction.
More states are coming.
A general guide only. Rules change and vary by city and county — confirm with your local government before you start.
No state tutoring license found
Pending verificationWe did not find a California state license specific to private tutoring. Check CalGold for any permits your city or county requires.
Verify with the CalGold (California permit finder)(opens in a new tab)City or county business license
Pending verificationMost California cities require a business license or tax registration, including for home-based businesses. Check with the city where your business is based.
Verify with the CalGold (California permit finder)(opens in a new tab)Fingerprint background checks (Live Scan) for tutors
Pending verificationPending verificationSourcesCalifornia DOJ — CalVECHS Frequently Asked Questions(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California DOJ — Fingerprint background checks: applicant agencies(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California DOJ — Applicant Fingerprint Processing Fees (fee sheet dated August 17, 2012, subject to change)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026California DOJ runs fingerprint-based background checks through Live Scan for organizations authorized to request them. Its CalVECHS program is open to for-profit businesses that provide education or instruction to children, and lets you receive state and federal criminal history for employees. Each person signs a waiver before fingerprinting. Standard state and federal processing fees apply, plus the Live Scan operator's rolling fee.
Verify with the California DOJ — Fingerprint background checks(opens in a new tab)Contracts with schools have their own rules
Pending verificationPending verificationSourceCalifornia DOJ — CalVECHS Frequently Asked Questions(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026If you tutor under contract with a public or private school, the school-contractor fingerprinting rules in state law apply instead of CalVECHS. The school will tell you what it requires.
Verify with the California DOJ — Fingerprint background checks(opens in a new tab)Youth service organization rules — may apply
Pending verificationCalifornia law (Business and Professions Code §18975) requires background checks and child-abuse reporting training for staff of youth service organizations. Whether a tutoring company counts depends on the definition, so confirm before you hire.
Verify with the California Legislative Information — B&P Code §18975(opens in a new tab)Employees or independent contractors (AB 5)
Pending verificationPending verificationSourceCalifornia DIR — Independent contractor versus employee (AB 5)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026California presumes workers are employees unless all three parts of the ABC test are met. Part B requires the work to be outside your usual business, which tutoring for a tutoring company is not. A narrow exemption exists for tutors referred to clients through a referral agency.
Verify with the California DIR — Independent contractor versus employee(opens in a new tab)LLC filing and annual tax
Pending verificationPending verificationSourcesCalifornia Secretary of State — LLC forms and fees (Form LLC-1)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Franchise Tax Board — Limited liability company(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Forming an LLC costs $70 with the Secretary of State, and every California LLC owes an $800 annual tax to the Franchise Tax Board.
Verify with the California Franchise Tax Board — LLCs(opens in a new tab)
The Playbook
A step-by-step guide from setup to growth.
Phase 1
Setup
- Choose your subjects, grade levels and online or in-home format
- Form your business and get a city business license
- Get a fingerprint background check and insurance
- Set up video, scheduling and payment tools
- Set your hourly rates and packages
Phase 2
Launch
Included in the complete kit
Phase 3
Marketing
Included in the complete kit
Phase 4
School and community outreach
Included in the complete kit
Phase 5
Operations
Included in the complete kit
Phase 6
Hiring tutors
Included in the complete kit
Phase 7
Growth
Included in the complete kit
Suppliers and Tools
Vendors independent operators use.
No supplier pays to be listed. If we ever earn a referral fee from a link, it will say “Affiliate link” right next to it.
Video-call software
For online sessions with screen sharing and a whiteboard.
Scheduling and billing
Calendars, reminders, invoicing and online payments for tutors and tutoring companies.
Background checks
Fingerprint background checks for you and your tutors.
The Kit Is Coming
Everything on this page is free. The downloadable kit (playbook, spreadsheets, templates) is in the works.
Frequently Asked Questions
Is this a franchise?
No. The Open Franchise is not a franchise and does not sell franchises. You start and own your tutoring business yourself, with no franchise fee, royalties, or territory rules. We sell guides and kits; that's all.
Do I need a teaching credential to tutor privately in California?
We found no state license or credential requirement for private tutoring. Parents will still look for subject expertise, and schools that contract with tutors set their own requirements.
Can my tutors be independent contractors?
Usually not in California. Under the AB 5 test, people who tutor for a tutoring company are generally employees. Check the DIR page linked above and get professional advice before hiring.
Are these numbers guaranteed?
No. Every cost and price is an estimate from a cited source, shown as a range where possible, with the date we last checked it. Your costs and results will depend on your market and choices.
Figures last verified October 30, 2026. Every number links to its source. See all sources for this page.