Mathnasium Franchise FDD, Profits, Costs & Fees (2024)
Mathnasium, established in 2002, has carved out a significant niche in the educational franchise sector, particularly focusing on math education for children. With its headquarters strategically placed, the brand has successfully expanded globally, reflecting its substantial growth and widespread acceptance.
The Mathnasium franchise embarked on its franchising journey a year after its inception, in 2003, showcasing a rapid expansion strategy that has contributed to its extensive network today.
Mathnasium distinguishes itself from competitors through its unique educational approach, the Mathnasium Method™, which transcends traditional math tutoring techniques.
This innovative method is designed to transform the way children understand and appreciate math, thereby building their confidence and fostering a love for learning.
The franchise’s mission to teach math in a way that children understand, master, and enjoy has been a cornerstone of its philosophy, enabling it to make a significant impact on students’ lives.
Initial Investment
How much does it cost to start a Mathnasium franchise? It costs on average between $113,000 – $150,000 to start a Mathnasium franchised center.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $49,000 |
Expenses While Training | $2,500 – $3,000 |
Technology Fee | $186 – $1,116 |
Rent (1st and last month’s rent) | $6,000 – $14,000 |
Paint, Carpet and Tenant Improvements | $5,500 – $13,500 |
Furniture, Signs, Equipment and Supplies | $10,000 – $17,000 |
Insurance | $1,200 – $1,500 |
Business License, Name Registration | $250 – $1,000 |
Professional Services (Legal and/or Accounting) | $1,300 – $2,000 |
Phone and Utilities | $500 – $1,000 |
Video surveillance and related equipment | $500 – $2,500 |
Pre-Open Advertising | $4,000 |
Additional Funds (4 Months) | $32,000 – $40,000 |
Total (1st Mathnasium Center) | $113,000 – $150,000 |
Average Revenue (AUV)
How much revenue can you make with a Mathnasium franchise? A Mathnasium franchised facility makes on average $310,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $205,000 yearly revenue for similar tutoring franchises. Below are 10 Mathnasium competitors as a comparison:
Mathnasium Franchise Disclosure Document
Recent Legal Disputes and Litigation
Mathnasium, a prominent math tutoring franchise, has encountered legal disputes with franchisees in recent years. One notable case is Mayster LLC v. Schoolhouse 4 Math, LLC, decided on September 29, 2020.
This breach-of-contract lawsuit involved the sale of a Mathnasium franchise. The court found that the defendant wrongfully terminated the purchase contract but ruled that the plaintiff could not collect damages due to a failure to mitigate losses.
Another incident involved a parent who experienced difficulties retrieving their child from a Mathnasium center. The parent was denied entry and had to involve law enforcement to resolve the situation. This led to considerations of legal action against the franchise for emotional distress and potential retaliation.
These cases underscore the importance of clear communication and adherence to contractual obligations within franchise operations. Prospective franchisees should thoroughly review franchise agreements and seek legal counsel to understand their rights and responsibilities.
Frequently Asked Questions
How many Mathnasium locations are there?
As of the latest data, Mathnasium operates over 1,100 learning centers worldwide. The majority of these centers are franchise-owned, with a smaller number being company-owned. This extensive network reflects Mathnasium’s commitment to providing math education across various regions.
What is the total investment required to open a Mathnasium franchise?
The total investment required to open a Mathnasium franchise ranges from $113,000 to $150,000.
What are the ongoing fees for a Mathnasium franchise?
Mathnasium franchisees pay a 10% royalty fee on monthly gross receipts, with a minimum of $650 per month. For marketing, they contribute $250 monthly, plus an additional 2% of monthly gross receipts. These fees support brand development and provide ongoing marketing resources.
What are the financial requirements to become a Mathnasium franchisee?
To become a Mathnasium franchisee, you must have a minimum net worth of approximately $150,000 to $250,000. Additionally, prospective franchisees should possess liquid assets ranging from $50,000 to $100,000. These financial prerequisites ensure that franchisees have the necessary resources to establish and sustain their Mathnasium learning centers effectively.
How much can a Mathnasium franchise owner expect to earn?
The average gross sales for a Mathnasium franchise are approximately $0.31 million per location. Assuming a 15% operating profit margin, $0.31 million yearly revenue can result in $47,000 EBITDA annually.
Who owns Mathnasium?
Mathnasium is owned by Roark Capital Group, an Atlanta-based private equity firm specializing in franchised and multi-location businesses. In November 2021, Roark Capital acquired Mathnasium, marking its 28th investment in a founder-owned company and its 98th franchise or multi-location brand.
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