Tallmoor Ledger · Business (fictional outlet)
State fines Quellbrook Learning franchisor $95,000 over revenue projections given to buyers
A state securities regulator has fined Quellbrook Learning Franchising, LLC, the franchisor of the Quellbrook Learning Centers tutoring chain, $95,000 after finding that its franchise sales staff gave prospective buyers revenue projections that did not appear in the company's disclosure document.
The consent order, entered August 18, 2026 and reviewed by the Ledger, says that in 2024 and 2025 sales staff sent at least seven prospective franchisees spreadsheets projecting first-year revenue of "$310,000 or more" for a new center. The company's Franchise Disclosure Document did not contain those figures, according to the order.
Under the order, the franchisor agreed to pay the fine, to offer rescission to the buyers who received the spreadsheets, and to retain an outside compliance reviewer for two years to review its sales materials. The company neither admitted nor denied the regulator's findings.
"The numbers I was shown before I signed were not the numbers in the FDD," said one franchisee who received a spreadsheet and asked not to be named.
In a written statement, the franchisor said it "cooperated fully" with the review and has "updated its sales training and approval process." It said the order does not affect existing franchise agreements.
The order follows a July letter from the Quellbrook Owners Council, an independent association of franchisees, signed by the owners of 23 centers, objecting to an increase in the chain's required curriculum software fee from $295 to $640 a month starting in January 2027.
The regulator's order is not a stop order, and the company remains registered to sell franchises in the state, according to the state's online registry.