Kumon is a popular business option among those who want to earn big bucks and advance quality education at the same time. So, if you’re wondering how much you need to cover the Kumon franchise cost as well as what you need to do to apply for a franchise, then read this quick guide to learn everything you need to know.
Kumon Franchise and the Market
You probably know Kumon as an after-school math and reading program for kids. More than a tutorial center, however, the program is designed to make a profound impact on students’ lives as they grow and learn further.
Kumon started in 1954, high school math teacher Toru Kumon first made loose-leaf calculation problems for his second-grader son, Takeshi. A year after, the first Math Center using the worksheets opened in Osaka. Then, in 1974, the first Kumon center outside Japan opened its doors in New York.
The Kumon method relies on several cornerstones. Firstly, they offer individualized instruction to help each kid reach their maximum potential. Secondly, they encourage self-learning, meaning the students would need to study proactively. Thirdly, they offer small-step worksheets which facilitate self-learning. And fourthly and last but not least, their instructors provide personalized instruction geared towards individualized learning.
Despite its world-renowned method, however, Kumon isn’t exempted from market competition. For instance, its nationwide competitors such as Mathnasium, Tabtor, and Plus Plus Tutoring, are each taking their own slices of the market.
So, what makes Kumon an attractive choice for investors? One reason could be their on-going support. In fact, their website says that for franchisees, “training and support begins on day one, and never ends.”
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How Much Does a Kumon Franchise Cost?
Without a doubt, this education center offers a huge earning potential for investors. But the question remains – how much do you need to cover the Kumon franchise cost? According to the company’s franchise disclosure document (FDD), it would cost you anywhere between $74,428 and $156,590 to set up your own center.
Initial Cost Breakdown
Name of Fee
Low
High
Training Agreement Deposit Fee
$500
$500
Expenses While Start-up Training (Instructor Development Program)
$5,150
$8,880
Initial Franchise Fee
$1,000 less, the $500 Deposit Fee if franchisee is obtaining their first Kumon Center.
Initial Purchase of Materials
$1,000
$1,000
Architect Design
$0
$10,000
Leasehold Improvements
$31,500
$60,000
Security Deposit, If Required
$0
$15,000
Rent
$2,500
$5,000
Furniture, Equipment, Primary Sign & Supplies
$3,400
$12,000
Notebook Computer at Kumon Center
$400
$2,000
Professional Fees
$1,000
$3,000
Liability Insurance
$480
$480
Business License, Name Registration
$100
$200
Kumon Lead Management Telephone System
$480
$600
Recommended Reading List
$2,550
$2,550
Fingerprinting, Criminal Background Check
$18
$60
Payroll Cost for Assistants (3 Months)
$7,350
$8,820
New Center Marketing
$4,000
$8,000
Additional Funds (3 Months)
$13,500
$18,000
Estimated Total
$74,428
$156,590
Cost Breakdown
Aside from the costs mentioned above, there are other fees you need to settle, such as the Royalty fee. There’s an Initial Enrollment Royalty Fee of $15 times the number of newly enrolled students per month. In addition to that, there’s a Monthly Royalty Fee. This amount differs for franchisees who are still under the Temporary License Period and those who have completed it.
It’s also crucial to settle your payment promptly and to double-check the accuracy of your reports. They charge an Administrative Fee for Late Payment, 1.5% on the overdue amount, or $75, whichever is higher.
In the same vein, there’s a Late or Inaccurate Report Fee of $200/month for the first month the franchisee is late. In relation to that, the fee increases to $500, $1,000 in the second and third months, respectively.
How Do I Start a Kumon Franchise
After reviewing the Kumon franchise cost, you can request more franchise info by calling 844 222 0996. Similarly, you can also fill out their franchise form, asking for personal data and other info related to finances.
The franchise application process involves five steps. First, you need to register for a seminar, where you’ll learn the basics of the business. Secondly, you’ll have to pre-qualify by completing their application. Thirdly, you’ll speak with their general manager in an in-depth interview. Then, they’ll ask you to attend an instructor development program. And once your selected location is approved, you can sign on the dotted line.
