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Free guide

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*

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.

Franchise vs. Independent

Same type of business. Two very different paths.

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)52
    • Median number of private students, 2025, same 166 full-time franchisees (a count, not revenue)47
    • Average hourly rate clients paid for high-school tutoring (319 franchises, rates posted as of March 2025)$57
    • Average hourly pay to high-school-level tutors (319 franchises, rates posted as of March 2025)$25
  • 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 year
    • Median 2025 gross receipts per center (same 914 centers; gross sales, not profit)$326,428 a year
    • Average 2025 gross receipts, top quarter of centers (229 centers; gross sales, not profit)$693,314 a year
    • Average 2025 gross receipts, bottom quarter of centers (229 centers; gross sales, not profit)$176,306 a year
  • 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 year
    • Median 2025 gross revenue per center (same 232 centers; gross sales, not profit)$533,106 a year
    • Average 2025 gross revenue, top quarter of centers (58 centers; gross sales, not profit)$1,115,433 a year
    • Average 2025 gross revenue, bottom quarter of centers (58 centers; gross sales, not profit)$247,465 a year

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.

Tutoring startup budget, lean start
ItemLowMidHigh
Laptop or desktop computer with webcamData coming soon
LLC filing (California Articles of Organization, Form LLC-1)$70$70$70
Simple websiteData 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
MonthJobsRevenueCostsProfitCumulative 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

Assumptions

Chemicals, fuel, and other per-job costs.

Starts at the insurance we've sourced, divided by 12.

Starts at the lean plan's mid estimate (sourced lines only).

Seasonality by month

1 = an average month. 1.3 = 30% busier.

Pricing

What customers typically pay, from large-sample cost data.

What customers pay

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 year
  • Average yearly receipts per tutoring and exam-prep firm with fewer than 5 employees in California (NAICS 611691, employer firms, 2022)$221,889 a year
  • Average yearly receipts per nonemployer (solo, no payroll) educational services business (NAICS 611, all educational services, U.S., 2024)$18,746 a year

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.

The Playbook

A step-by-step guide from setup to growth.

  1. 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
  2. Phase 2

    Launch

    Included in the complete kit

  3. Phase 3

    Marketing

    Included in the complete kit

  4. Phase 4

    School and community outreach

    Included in the complete kit

  5. Phase 5

    Operations

    Included in the complete kit

  6. Phase 6

    Hiring tutors

    Included in the complete kit

  7. 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.

We never sell your email. Privacy policy.

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.

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