Kumon Math and Reading Centers
Kumon Math and Reading Centers offer after-school programs using the Kumon Method to improve children's math and reading skills. Known for its structured learning approach, this franchise operates centers where students attend twice weekly for 20-30 minutes, with daily homework. Part of the education sector.
Kumon Math and Reading Centers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Kumon Center franchise ranges from $101,630 to $233,780 [p.1].
What is the initial franchise fee?
The initial franchise fee is $2,000. However, if you offer English as a Foreign Language (EFL) as an additional subject, the amount increases to $3,000 [p.25, p.129].
What are the ongoing royalty and advertising fees?
The ongoing royalty rates can vary based on compliance with Ongoing Training Requirements. If these requirements are not met, a higher royalty rate applies for at least one calendar year [p.80, p.81]. Regarding advertising fees, while the franchisor controls the advertising program and expenses [p.85], there is no specific mention of an additional advertising fee beyond the royalty payment tied to student enrollments [p.145]. This isn't specified in the excerpts for a dedicated advertising fee.
How long is the initial franchise agreement, and can I renew it?
The term of the franchise agreement isn't specified in the excerpts. However, there are provisions for renewal; you must give written notice at least 90 days but no more than 180 days before the agreement expires if you wish to renew your franchise rights [p.96]. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must comply with the provisions outlined in Section 17.8 of the FDD [p.105]. Specifically, you need to adhere to the requirements in Sections 10, 17.4(c) and (d), and Sections 17.5(c) and (d). Additionally, Kumon will consent to such a transfer only if you form a corporation or LLC for convenience of ownership and reimburse them for any direct costs incurred [p.105]. This includes signing the current form of Franchise Agreement, which may have different terms than your existing agreement [p.105].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts only detail termination rights for the franchisee and do not specify the grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory within the Kumon franchise organization for operating your Center(s) [p.44]. This means you may face competition from other franchisees, centers owned by Kumon, or other channels of distribution or competitive brands controlled by Kumon [p.81].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training as part of the Instructor Development Program, which is a prerequisite for becoming a franchisee. This training includes non-brand-specific general business information deemed distinct from operating a company-branded franchise unit [p.145]. Additionally, during the preliminary training period, Kumon evaluates the prospective franchisee's suitability to operate a center and may terminate training if they determine the individual is unsuitable [p.111]. The franchisor also provides ongoing support for quality assurance, employee management, and other operational improvements [p.108].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet [p.55]. Any other financial performance information received should be reported to specified authorities [p.55].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain items; however, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than similar items purchased elsewhere [p.3]. This isn't specified in the excerpts regarding where you must buy supplies.