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Kumon Franchise Costs, Fees & Profits (2024)

Here’s what you need to know if you’re interested in opening a Kumon franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

1659

INITIAL INVESTMENT

$74,000 – $166,000 

ROYALTY FEE

$30 x new enrolled students
revenue

REVENUE PER YEAR

$0

Kumon is a globally recognized franchise that specializes in after-school math and reading programs for children. Founded by Toru Kumon in 1958 in Japan, the franchise has grown to become an educational leader known for its unique learning method. The Kumon Method emphasizes individualized instruction, self-learning, and progression through small, incremental steps, enabling students to develop their skills to the maximum potential.

The franchise began its global expansion in 1974, when the first overseas Kumon Math Center opened in New York. This marked the beginning of Kumon’s international presence, which now spans over 50 countries.

The franchise’s headquarters are located in Japan, where the company was originally established. Kumon’s approach to education has set it apart from competitors by focusing on self-paced learning and ensuring students master each concept before moving on to more challenging material.

Number of locations

TOTAL UNITS
1659
FRANCHISED UNITS
1637

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Initial investment

INITIAL INVESTMENT
$74,000 $166,000 
Type of ExpenditureAmount
Training Agreement Deposit Fee$1,000
Initial Franchise Fee$2,000 less the $1,000 Deposit Fee if you are obtaining your first Kumon Center franchise
Initial Purchase of Materials$2,000
Architect Design$0 – $10,000
Leasehold Improvements$30,000 – $60,000
Security Deposit, If Required$0 – $27,000
Rent$3,000 – $7,000
Furniture, Equipment, Primary Sign & Supplies$5,000 – $15,000
Notebook Computer at Kumon Center$500 – $2,000
Professional Fees$1,000 – $3,000
Liability Insurance$500
Business License, Name Registration$100 – $200
Kumon Lead Management System Suite$200 – $600
Recommended Reading List$3,000
Fingerprinting, Criminal Background Check$20 – $60
Payroll Cost for Assistants (3 Months)$10,700 – $12,900
Additional Funds (3 months)$16,200 – $21,700
Total$74,000 – $166,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

INITIAL FRANCHISE FEE
$2,000
ROYALTY FEE
$30 x new enrolled students

Initial Fees

The Initial Franchise Fee is $2,000, payable upon signing the Franchise Agreement. This fee is non-refundable. An additional materials fee of $2,000 is required for items such as instruction answer books and promotional material, also non-refundable.

Training Deposit

For first-time franchise applicants, a Training Deposit of $1,000 is required for the Instructor Development Program’s Training Kit. This deposit is applied towards the Initial Franchise Fee upon successful completion and signing of the Franchise Agreement.

Royalties

Initial Enrollment Royalty Fee: $15 per newly enrolled student each month, debited electronically. Monthly Royalty During Temporary License Period (TLP): $40.50 times the number of full-payment students, and $20.25 times the number of partially exempt/prorated tuition students, per Subject-Franchise. After TLP completion, the Monthly Royalty reduces to $36 for full-paying students and $18 for partially exempt/prorated tuition students, per Subject-Franchise.

Administrative Fees

Late Payment Fee: 1.5% on overdue amounts each month or $75, whichever is higher, charged for late royalty payments. Late or Inaccurate Report Fee: Starts at $200 for the first month of late/inaccurate reports, increasing by $1,000 for each subsequent month.

Additional Fees

Insufficient Funds Fee: $25 per failed Electronic Funds Transfer attempt. Insurance: $4.80 per Math student per year, billed semi-annually. Relocation Fee: $2,000 if fewer than 80% of students transfer to a new location. Payments for “Chargeable Items”: Prices vary, listed in Exhibit A. Liquidated Damages: Three times the average monthly royalty for certain terminations.

Advertising Contributions

New Center Marketing: $1,000 each in the fifth and sixth month after opening, totaling $2,000. Annual Advertising Contribution: No current minimum requirement, but a $2,400 annual spend is recommended.

Profits

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How to apply

1. Assess Your Qualifications

  • Ensure you meet the basic financial requirements, including a net worth of $150,000 and liquid capital of $70,000.
  • Check that you have a bachelor’s degree, as this is a prerequisite.
  • Reflect on your passion for education and working with children, as well as your readiness to take on the responsibilities of owning and running a business.

2. Research Kumon and Its Franchise Model

  • Visit the official Kumon franchise website and other reputable sources to gather information.
  • Understand the Kumon Method of learning, its history, and its unique approach to education.
  • Familiarize yourself with the support and training Kumon provides to franchisees, as well as any financial incentives available.

3. Attend a Kumon Franchise Seminar

  • Register and attend a Kumon franchise seminar, which can be virtual or in-person, to gain in-depth knowledge about the franchise opportunity.
  • Use this opportunity to ask questions and interact with Kumon representatives and possibly other prospective franchisees.

4. Submit Your Franchise Application

  • Complete the franchise application form available on the Kumon franchise website.
  • Provide all necessary documentation and information required as part of the application process.

5. Undergo the Selection Process

  • Participate in interviews and assessments as part of Kumon’s selection process.
  • This may involve demonstrating your understanding of Kumon’s educational philosophy and your capabilities in managing a franchise.

6. Secure Financing

  • If required, secure financing to meet the initial investment and start-up costs associated with opening a Kumon franchise.
  • Consider Kumon’s financial incentives and how they might reduce your upfront costs.

7. Complete Training Programs

  • Upon approval, undergo Kumon’s comprehensive training programs designed to prepare you for running your franchise.
  • This includes learning about the Kumon curriculum, business management, and operational standards.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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