Kumon Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$2,000
Investment required
$74,000 - $166,000
Royalty fee
$30 x new enrolled students

Kumon: Cultivating Independent Learners Worldwide

Founded in 1958 by Toru Kumon in Osaka, Japan, Kumon has become a global leader in after-school math and reading programs. The company began franchising in 1958 and has expanded to over 25,000 centers across more than 50 countries.

Kumon offers individualized learning programs designed to develop self-learning skills, enabling students to progress beyond their school grade level. Kumon's unique methodology emphasizes daily practice and mastery of fundamental concepts, fostering critical thinking and problem-solving abilities.

This approach not only enhances academic performance but also builds confidence and independence in learners. By focusing on long-term educational development, Kumon distinguishes itself from traditional tutoring services, providing a comprehensive framework for lifelong learning.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Training Agreement Deposit Fee $1,000
Initial Franchise Fee $2,000 less $1,000 Deposit Fee (first franchise)
Initial Purchase of Materials $2,000
Architect Design $0 - $10,000
Leasehold Improvements $30,000 - $60,000
Security Deposit (if required) $0 - $26,500
Rent $3,000 - $7,000
Furniture, Equipment, Primary Sign & Supplies $5,000 - $15,000
Notebook Computer at Kumon Center $500 - $2,000
Professional Fees $1,000 - $3,000
Liability Insurance $480 ($4.80 multiplied by the number of students enrolled in the Math Subject)
Business License, Name Registration $100 - $200
Kumon Lead Management System Suite $200 - $550
Recommended Reading List $2,600
Fingerprinting, Criminal Background Check $18 - $60
Payroll Cost for Assistants (3 Months) $10,725 - $12,870
Additional Funds (3 Months) $16,160 - $21,660
Total $73,783 - $165,920

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Number of units

2024
Franchised units

1,606

1,618

1,637

Company-owned units

31

28

22

Total units

1,637

1,646

1,659

Franchise Disclosure Document

Training

Kumon provides initial training through its Instructor Development Program, which is designed to equip franchisees with the skills and knowledge needed to operate a center. This program includes in-center training at designated Kumon Centers, online modules, homework assignments, and curriculum study.

The first semester must be successfully completed to be eligible for a franchise, while the second semester is required for ongoing operations.

Franchisees may also be required to attend supplemental and repeat training sessions. These sessions focus on upgrading instructional, business, or center management skills to ensure franchisees stay effective and competitive. Kumon retains the right to modify or add new training sessions based on business needs.

In addition to formal training, Kumon offers informal support such as consultations through branch office meetings, phone calls, video conferences, or on-site visits. These efforts aim to provide continuous guidance and assistance tailored to the needs of each franchisee.

Territory Protection

Kumon does not provide guaranteed territory protection to its franchisees. While franchisees may be assigned a designated area, the franchisor retains the right to operate within that territory.

This includes the possibility of competition from Kumon itself or other Kumon franchisees, depending on the terms outlined in the franchise agreement. The franchise agreement emphasizes that franchisees should thoroughly understand their rights and limitations regarding territorial exclusivity.

Potential franchisees are encouraged to review specific provisions in the agreement and consult legal or professional advisors to fully comprehend the implications of competition within their designated area. This ensures that franchisees are aware of potential overlaps in market operations.

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