Kumon franchise

Hassle-free business loans to start your Kumon franchise.

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.

Kumon business details

Launched in 1958 and headquartered in Ridgefield Park, New Jersey, Kumon has offered franchise opportunities since inception. (Kumon US is a subsidiary of Japanese learning giant Kumon Institute of Education). 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:

  • US stores: Approximately 1540
  • Required Investor net worth: $150,000
  • Required investor liquid cash: $70,000
  • Min. investment: $67,200
  • Max. investment: $145,600
  • Standard franchise term: 5 years

Can I start a Kumon franchise?

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.

How much does a Kumon franchise cost?

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:

  • Monthly royalty fees: $30 initial enrollment fee per student, then: $40.50 per student during temporary license period (TLP) and $36 per student after TLP
  • Insurance: $4.80 per month per math student
  • Relocation fee: $2,000
  • New center marketing fund: $220 per month for first 18 months

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Estimated key costs to open a Kumon franchise:

Key Costs GuideLowHigh
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

Are Kumon franchises profitable?

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.

What is the failure rate for a Kumon franchise?

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.

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What are the franchise territory policies for Kumon?

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.

What franchise resources does Kumon offer?

Kumon support for franchisees includes:

  • Training: Kumon provides its Instructor Development Program (IDP). This consists of two semesters with two courses in the first semester and two courses in the second semester. Franchisees must complete the first semester in order to be offered a franchise, after which, they must complete the second training semester and attend two additional online courses. Kumon currently estimates that it will take approximately four months to complete the first semester of the IDP. After completion of their temporary license period, franchisees must complete ongoing training, which continues for the term of the franchise. 
  • Marketing support: Kumon provides promotional and other marketing support for their franchisees.
  • Third-party financing: Kumon provides limited financial support for investors seeking franchise funding. Alternatively you may be able to obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Kumon franchise?

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.

What is the process for starting a Kumon franchise?

It begins with an application. Start the process here.

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Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new learning business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://topfranchise.com/products/kumon-math-reading-centre-franchise/ 

Kumon franchise application: https://www.kumonfranchise.com/getting-started

Kumon: https://www.kumonfranchise.com/how-kumon-works

Failure rate: https://www.unhappyfranchisee.com/tutoring-franchise-failures/

Set-up costs: https://www.franchisedirect.com/directory/kumon/ufoc/908/

Learning method: https://www.kumon.org/our-method/

Worldwide units: https://www.kumongroup.com/eng/about/

World’s largest: https://www.kumon.co.uk/about/

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