Kumon is the world’s largest provider of supplementary education. Their learning centers enhance the teaching children receive in regular school by using a proprietary ‘just right’ learning method that was created by the company’s founder in 1954.
Launched in 1958 and headquartered in Ridgefield Park, New Jersey, Kumon has offered franchise opportunities since inception. Via their franchised learning centers, the business provides after-school math and reading tutoring to children aged two years up to pre-university. Kumon operates in 62 countries and has more than 27,000 learning centers across the globe.
Kumon at a glance:
Kumon franchises have to be one of the most affordable opportunities available. Liquid cash requirements are only $70k and minimum net worth is $150k. Set-up costs are equally modest. Heck, even the initial franchise fee is low-cost. But apart from the money, what else do you need? Kumon does not demand that franchise owners have educational experience or qualifications, (although you must have at least a bachelor’s degree). Instead, the company wants franchisees that have a passion for working with children and believe in Kumon’s mission of helping kids become independent, self-assured and confident. They also say that many of their franchisees have previous experience running a business. Lastly, the company expects their franchisees to make a full-time commitment to managing the learning center. This opportunity is not suitable for passive investment.
Set-up costs to start a Kumon learning center range from $67,200 to $145,600 depending on location and the size of the facility. This cost ranks as low. Additionally, Kumon may provide up to $38,700 in franchisee incentives to help pay for things like rent, signage, décor, furniture, fixtures, fittings and marketing.
The initial franchise fee is $2,000. Military veterans may be eligible for a 10% discount off this cost.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee (less $1,000 training deposit if first center) | $2,000 | $2,000 |
| Training agreement deposit | $1,000 | $1,000 |
| Construction costs/leasehold improvements | $30,000 | $60,000 |
| Architect fees | $0 | $10,000 |
| Initial purchase of materials | $2,000 | $2,000 |
| Security deposit | $0 | $26,500 |
| Rent | $3,000 | $7,000 |
| Furniture, fixtures, signage | $5,000 | $15,000 |
| Technology | $0 | $1,125 |
| Professional fees | $1,000 | $3,000 |
| Liability insurance | $480 | $480 |
| Business license, name registration | $100 | $200 |
| Kumon lead management system | $200 | $550 |
| Recommended reading list | $2,600 | $2,600 |
| Background checks | $18 | $60 |
| Payroll cost for tutors – first three months | $11,000 | $13,000 |
| Additional costs – first three months | $16,000 | $21,000 |
Yes. On average, Kumon learning centers generate about $173,000-$300,000 in turnover per year and the franchisee typically earns a net profit margin of about 30%. Based on this, franchise owners can expect to make approximately $52,000 – $70,000 per year. This ranks as moderate to good.
High. The average annual failure rate for Kumon franchises is 20% – although this lower than other nationally recognized tutoring franchises such as Sylvan and Huntington.
Franchisees do not receive an exclusive territory for the operation of their center(s). Franchisees may face competition from other franchisees, from centers owned by the Kumon, or from other channels of distribution or competitive brands controlled by the company. Franchisees may operate their center only at the location approved by Kumon and as specified in their franchise agreement.
Kumon support for franchisees includes:
Affordable start-up costs and respectable profits reveal a promising opportunity. However, a 20% failure rate – one in five Kumon franchises close every year – is concerning. If you think you can overcome this statistic and you like the idea of teaching kids to become better, more confident young people – and you’re not seeking a passive investment – then a Kumon learning center could be the business for you.
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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