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Mathnasium Franchise Costs, Fees & Profits

Mathnasium Franchise Costs, Fees & Profits (2024)

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

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

972

INITIAL INVESTMENT

$113,000 – $150,000 

ROYALTY FEE

10% + $650 per month
revenue

REVENUE PER YEAR

$310,000

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.

Number of locations

TOTAL UNITS
972
FRANCHISED UNITS
968

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Initial investment

INITIAL INVESTMENT
$113,000 $150,000 
Type of ExpenditureAmount
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

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
$49,000
ROYALTY FEE
10% + $650 per month

Initial Franchise Fee

The initial franchise fee for the first franchise is $49,000, payable upon signing the Franchise Agreement. This fee is fully earned once paid and is generally not refundable.

Royalty Fee

The monthly royalty fee for Mathnasium is initially set at 10% of your monthly Gross Receipts from all sources as a result of operating your Center. Starting from the 24th month of operation, you are required to pay the greater of either the 10% monthly royalty or a minimum royalty payment of $1,500 per month. Additionally, any adjustments based on the Consumer Price Index (CPI) will not be made to the percentage of Gross Receipts charged as Monthly Royalty (10%) or Marketing Fees (2%).

Lease or Rent Fee

The lease or rent fees, including initial costs like first and last month’s rent, range from $6,000 to $14,000, as required by the landlord or applicable law.

Renewal Fees

For franchise renewal, a fee of $7,000 applies, which can be paid upfront or in 14 monthly installments of $500 each. This is conditional on the franchisee being in good standing and meeting certain requirements.

Profits

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How to apply

1: Request Information

  • Begin by expressing your interest in the franchise by completing an inquiry form. You will receive a franchise prospectus via email, providing detailed information about the business aspects of the franchise. A franchise team member will also reach out to introduce themselves and begin the conversation​​.

2: Initial Call and Request for Consideration (RFC)

  • The next step involves a more personalized interaction, where you will have an initial call with a recruitment lead to discuss your interest and alignment with Mathnasium’s values and business model. If both parties feel there’s a potential match, you will be asked to complete an RFC form to provide more details about yourself​​.

3: Discovery Meeting

  • This step allows for a deeper dive into the business. You will have the opportunity to meet key team members either in-person or online, learn more about the systems, support, and educational programs offered by Mathnasium, and have an open discussion to address all your questions​​.

4: Speak with Existing Franchisees

  • Mathnasium encourages potential franchisees to speak with current franchise owners to gain firsthand insights into what it’s like to operate a Mathnasium center. This step is invaluable for understanding the day-to-day operations and the support system in place​​.

5: Planning

  • Once there’s mutual agreement on proceeding, this phase involves detailed planning for your franchise. Discussions about territory, business planning, potential financing needs, and review of the draft franchise agreement take place during this step​​.

6: Franchise Awarded

  • After approval, legal and financial documents are drawn up to formalize the franchise award. You’ll then receive guidance on setting up your company, planning your launch, and scheduling training. This marks the beginning of your journey as a Mathnasium franchisee​.

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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