C2 Education Centers franchise unit economics
C2 Education Centers franchisees run leased tutoring and test-preparation centers that sell test preparation, college preparatory, academic achievement and enrichment programs.
C2 Education Centers franchise at a glance
C2 Education Centers’ 2026 FDD, issued 31 July 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A C2 Education Centers franchise costs $216,200 to $426,100 to open, including the $39,000 initial franchise fee. Fees paid to C2 Education Centers come to about 10%* of sales.
- C2 Education Centers charges a royalty of 8% of Gross Revenue, with a minimum of $1,000 a month in months 4 to 12 and $2,000 a month from month 13.
- C2 Education Centers franchisees pay 2% of Gross Revenue to the Marketing Fund, which the franchisor may raise to 5%, and must spend $6,000 a month on local advertising.
- From the second anniversary of opening, a C2 Education Centers franchise must reach $250,000 of Gross Revenue in each operating year.
- On Averan’s reading, the royalty minimum, local advertising and technology fees come to $99,300 a year from month 13 before any percentage of revenue above the minimum.*
- At the end of 2025 the C2 Education Centers system had 116 centers: 16 franchised and 100 operated by the franchisor’s affiliates.
- C2 Education Centers’ fixed charges of $99,300 a year from month 13 equal 39.7% of the $250,000 Minimum Performance Requirement.
These figures come from C2 Education Centers's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. $99,300 a year of fixed charges ($24,000 royalty minimum + $72,000 local advertising + $3,300 technology and technology management fees).
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Talk to Averan → Averan C2 Education Centers Conversion Package →- The FDD makes no financial performance representation. Item 19 states that the franchisor does not make representations about the past performance of company-owned or franchised outlets. The FDD does not give revenue, cost or profit for any center.
- Affiliates of the franchisor operate 100 of the 116 centers. Item 1 calls these Affiliate-Owned Centers. That is 86.2% of the system at the end of 2025*; 16 centers are franchised.
- The royalty has a minimum that rises to $2,000 a month. The royalty is 8% of Gross Revenue with no minimum in months 1 to 3, a $1,000 monthly minimum in months 4 to 12 and a $2,000 monthly minimum from month 13. At $2,000 a month the minimum applies until annual revenue reaches $300,000*.
- Local advertising is a fixed $6,000 a month. Item 11 sets the Local Advertising Obligation at $6,000 a month, on top of the Marketing Fund and the $10,000 to $25,000 start-up advertising program. The franchisor may change it by up to 1% a month. Over a year it is $72,000*.
- Total centers fell from 134 to 116 between the start of 2023 and the end of 2025. Affiliate-owned centers went from 115 to 100 and franchised centers from 19 to 16, a fall of 18 centers or 13.4%*. No franchise agreements were signed but not yet open at the end of 2025.
Revenue disclosure
What the C2 Education Centers FDD discloses about revenue
| Where | What it says |
|---|---|
| Item 19 | No financial performance representation |
| Item 12, Minimum Performance Requirement | Gross Revenue of at least $250,000 in each operating year, from the second anniversary of opening |
| Item 6, royalty | Minimum of $1,000 a month in months 4 to 12 and $2,000 a month from month 13 |
| Item 6, lost revenue damages | Based on the center’s own last 12 months, or on the average monthly Gross Revenue of all centers in the prior year if open less than 12 months; that average is not printed |
Source: Items 6, 12 and 19 of the 2026 FDD.
Item 19 contains no revenue, cost or profit figures. The franchisor states that it makes no representations about the past performance of company-owned or franchised outlets, and that it may provide the actual records of an existing outlet to a buyer of that outlet.
The FDD sets a revenue requirement of $250,000 a year. From the second anniversary of the Commencement Date, Gross Revenue must be at least $250,000 in each operating year. A center that misses it must write a business plan for the franchisor’s approval; two consecutive misses allow the franchisor to reduce the territory or end the franchise agreement.
The royalty minimums correspond to set revenue levels. The $1,000 monthly minimum in months 4 to 12 is larger than 8% of revenue until annual revenue reaches $150,000*. The $2,000 monthly minimum from month 13 is larger until annual revenue reaches $300,000*.
Current and former franchisees are listed in the FDD. Exhibits F and G name the franchisees open at the end of 2025 and those who left the system in 2025, with contact details.
Charges by revenue level
Charges at different revenue levels, from month 13
| Annual revenue | Royalty | Marketing Fund (2%) | Technology fees | Local advertising | Total | Share of revenue | Royalty and fund as share |
|---|---|---|---|---|---|---|---|
| $150,000 | $24,000 | $3,000 | $3,300 | $72,000 | $102,300 | 68.2% | 18.0% |
| $200,000 | $24,000 | $4,000 | $3,300 | $72,000 | $103,300 | 51.7% | 14.0% |
| $250,000 | $24,000 | $5,000 | $3,300 | $72,000 | $104,300 | 41.7% | 11.6% |
| $300,000 | $24,000 | $6,000 | $3,300 | $72,000 | $105,300 | 35.1% | 10.0% |
| $500,000 | $40,000 | $10,000 | $3,300 | $72,000 | $125,300 | 25.1% | 10.0% |
Averan calculation from Item 6 and Item 11 rates: royalty the greater of 8% or $24,000 a year; Marketing Fund 2%; technology fee $250 and technology management fee $25 a month; Local Advertising Obligation $6,000 a month. The revenue levels are examples, not FDD figures, except $250,000, which is the Minimum Performance Requirement.
Item 19 does not show how results spread across centers. With no revenue figures in the FDD, this table shows how the fixed and percentage charges compare with revenue at set levels.
At the $250,000 Minimum Performance Requirement the listed charges total $104,300 a year. That is 41.7% of revenue*. Royalty and Marketing Fund together are 11.6%*; the $72,000 of local advertising is the largest line.
If the Marketing Fund rises to its 5% limit, each level costs more. At $250,000 of revenue the fund would be $12,500 a year*, $7,500 more than at 2%*.
Brand charges
Brand charges
| Charge | Rate or amount | Paid to | A year at $250,000* |
|---|---|---|---|
| Royalty | 8% of Gross Revenue; minimum $1,000 a month in months 4 to 12 and $2,000 a month from month 13 | Franchisor | $24,000* |
| Marketing Fund | 2% of Gross Revenue, may increase to 5% | Franchisor’s Marketing Fund | $5,000* |
| Local Advertising Obligation | $6,000 a month, may change by up to 1% a month | Spent by the franchisee on approved advertising | $72,000* |
| Technology fee | $250 a month | Franchisor | $3,000* |
| Technology management fee | $25 a month | Franchisor | $300* |
| Cooperative advertising | A percentage of Gross Revenue, if a cooperative is formed; counts toward local advertising | Cooperative | Not set |
| Total | $104,300, or 41.7% of revenue* |
Source: Item 6 and Item 11. Other charges in Item 6 arise only in set cases: additional training at $1,500 a person, additional training assistance at $500 per attendee per day, conference fees of $600 per attendee, quality assurance or secret shopper visits up to $500, a $250 insufficient funds fee and interest at up to 18% a year.
The royalty is 8% of Gross Revenue, with monthly minimums. There is no minimum in months 1 to 3. The minimum is $1,000 a month in months 4 to 12 and $2,000 a month from month 13 to the end of the term. The month the center opens counts as month 1, however many days the center is open in it.
The Marketing Fund is 2% of Gross Revenue and may rise to 5%. With the royalty, percentage charges come to 10% of Gross Revenue at current rates and 13% at the fund limit.
The local advertising spend is a fixed monthly amount. Item 11 requires $6,000 a month on top of the Marketing Fund and the start-up advertising program. Unspent amounts can be collected by the franchisor for the Marketing Fund or its own use.
Fixed charges from month 13 come to $99,300 a year on Averan’s reading.* That is the $24,000 royalty minimum, $72,000 of local advertising and $3,300 of technology fees*.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $39,000 | $39,000 |
| Leasehold improvements | $60,000 | $146,000 |
| Additional funds, three months | $40,000 | $60,000 |
| Furniture | $17,600 | $30,000 |
| Security deposit and prepaid rent | $7,000 | $23,500 |
| Start-up marketing | $10,000 | $25,000 |
| Signage | $5,000 | $17,000 |
| Architect | $0 | $16,500 |
| Office equipment and supplies | $6,000 | $12,000 |
| Out-of-pocket expenses during training | $6,000 | $12,000 |
| Start-up kit | $7,500 | $10,000 |
| Licenses and permits | $1,000 | $10,000 |
| Technology system | $8,100 | $8,100 |
| Brochures and promotional materials | $3,000 | $5,000 |
| Professional fees | $3,000 | $5,000 |
| Insurance | $2,000 | $4,000 |
| Other deposits | $1,000 | $3,000 |
| Total | $216,200 | $426,100 |
Source: Item 7. The cover page states that $49,000 to $51,500 of the total is paid to the franchisor or its affiliate: the franchise fee, the start-up kit and $2,500 of the technology system.
The estimate assumes a leased center of about 1,500 to 1,700 square feet. The site may be a freestanding building or an in-line retail plaza space. Leasehold improvements of $60,000 to $146,000 are the largest line.
The initial franchise fee is $39,000, with a $4,000 discount for educators and existing franchisees. Start-up marketing must be at least $10,000.
The franchisor’s share is 22.7% of the low estimate and 12.1% of the high.*
An area development agreement for three centers adds a $65,000 development fee. The fee is $35,000 for the second center and $30,000 for the third, and each is credited against that center’s initial franchise fee. The total investment for the first center under that agreement is $281,200 to $491,100.
The franchisor estimates opening within 12 months of signing. It may end the franchise agreement if the center is not open by the first anniversary of signing.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Franchised opened | Franchised ceased | Franchised at end | Affiliate-owned opened | Affiliate-owned closed | Affiliate-owned at end | Total at end |
|---|---|---|---|---|---|---|---|---|
| 2023 | 19 | 0 | 1 | 18 | 4 | 4 | 115 | 133 |
| 2024 | 18 | 1 | 3 | 16 | 0 | 10 | 105 | 121 |
| 2025 | 16 | 0 | 0 | 16 | 0 | 5 | 100 | 116 |
Source: Item 20, Tables 1, 3 and 4. There were no terminations, non-renewals, reacquisitions or transfers of franchised centers in 2023, 2024 or 2025. Franchised closures are reported as ceased operations for other reasons.
Franchised centers fell from 19 to 16 over the three years. One opened, in Florida in 2024, and four ceased operations: one in New Jersey in 2023, and one each in Georgia, New Jersey and Oregon in 2024.
Affiliate-owned centers fell from 115 to 100. Four opened in 2023 and 19 closed across the three years*, including five in California, where the count went from 31 to 26.
At the end of 2025 the franchised centers were in Virginia (5), Texas (4), Florida (3), Georgia, Maryland, New Jersey and Washington (1 each). Virginia and Texas held the same counts in all three years.
The franchisor projects four new franchised centers in 2026 and reports no agreements signed but not yet open. The projected openings are one each in Colorado, Minnesota, North Carolina and Texas.
Questions we get asked
Questions owners ask
How much does it cost to open a C2 Education Centers franchise?
The 2026 FDD estimates $216,200 to $426,100, including the $39,000 initial franchise fee, three months of additional funds and leasehold improvements of $60,000 to $146,000. Of that, $49,000 to $51,500 is paid to the franchisor or its affiliate.
What fees does a C2 Education Centers franchisee pay?
A royalty of 8% of Gross Revenue, with a minimum of $1,000 a month in months 4 to 12 and $2,000 a month from month 13, and a Marketing Fund contribution of 2% that may rise to 5%. Franchisees must also spend $6,000 a month on local advertising and pay a $250 monthly technology fee and a $25 monthly technology management fee.
How much revenue does a C2 Education Centers franchise make?
The FDD does not say. Item 19 contains no financial performance representation, so there is no average, median or range of revenue for franchised or affiliate-owned centers. The FDD does require Gross Revenue of at least $250,000 a year from the second anniversary of opening.
How many C2 Education Centers are there?
At the end of 2025 there were 116 centers: 16 franchised and 100 operated by affiliates of the franchisor. At the start of 2023 there were 134.
What territory does a C2 Education Centers franchise get?
Item 12 says the franchise agreement does not grant an exclusive territory. Where a Territory is designated, the franchisor will not operate or license another C2 Education center inside it. A Territory is generally the lesser of a 3-mile radius or 50,000 population. If none is designated, none is granted.
How long is the C2 Education Centers franchise term?
The franchise agreement runs five years. A franchisee who meets the conditions may enter into three successive five-year terms, 20 years in all*.
Questions worth putting to C2 Education Centers
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does C2 Education Centers see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many C2 Education Centers locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a C2 Education Centers owner
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Other brands in the Tutoring And Learning Centers guide: Best in Class Education Center · Brain Balance · Huntington Learning Center · Kumon · LearningRx · Mathnasium · Sylvan Learning.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Cambridge Educational Center, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. C2 Education Centers is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Cambridge Educational Center, Inc., 2026 Franchise Disclosure Document, issued 31 July 2026.