Kumon FDD & Financial Analysis
No financial performance representation, a per-student fee where every other franchise charges a percentage, and a $2,000 franchise fee. What the FDD reveals — and what it withholds.
The Item 19 Silence
Kumon publishes no financial performance representation in its Franchise Disclosure Document. Item 19, the section where a franchisor may disclose revenue, costs, margins or profitability, is blank.
That means every earnings figure in circulation — the $350,000 average unit revenue, the $40,000–$100,000 net income estimates — is third-party estimation, not disclosed data. No one outside Kumon’s corporate office can tell you whether those numbers are drawn from a representative sample, a cherry-picked top quartile, or an outdated filing year.
For a prospective franchisee, the absence means:
- No franchisor-verified revenue figures. You cannot model expected gross revenue from anything in the FDD.
- No breakeven guidance. How many students at what tuition for how many months before the centre covers its costs? The franchisor does not say.
- No quartile distribution. You have no way to know what percentage of centres earn above or below any threshold.
- No cost benchmarks. Rent, labour, materials, marketing — the FDD gives no operating-cost data for existing centres.
This is not unusual — many franchise systems opt out of Item 19. But for a buyer doing due diligence, it means the entire financial case rests on your own research, your own projections, and conversations with existing franchisees.
Why This Matters
A franchise with no Item 19 is not hiding bad news — it is choosing not to disclose. The reasons are usually legal: any figure a franchisor publishes in the FDD becomes a representation it can be held to. But for you as a buyer, the practical effect is the same. Every number you hear about Kumon earnings is unofficial. Treat it that way.
Fee Structure Deep Dive
Kumon’s fee model is unlike any other franchise on this site. Instead of taking a percentage of gross revenue, it charges a flat monthly fee per enrolled student, per subject — roughly $38 per student per subject per month (one source gives a $38–$42.75 band).
Per-Student Royalty at Scale
The table below shows what the royalty costs at different enrolment levels, assuming the ~$38 midpoint. A student enrolled in both math and reading counts twice.
| Students | Subjects / Student | Monthly Royalty | Annual Royalty |
|---|---|---|---|
| 50 | 1.0 | $1,900 | $22,800 |
| 50 | 1.5 | $2,850 | $34,200 |
| 100 | 1.0 | $3,800 | $45,600 |
| 100 | 1.5 | $5,700 | $68,400 |
| 150 | 1.0 | $5,700 | $68,400 |
| 150 | 1.5 | $8,550 | $102,600 |
| 200 | 1.0 | $7,600 | $91,200 |
| 200 | 1.5 | $11,400 | $136,800 |
Calculated at $38/student/subject/month. Actual fee may fall within the $38–$42.75 band reported by independent sources. “Subjects / Student” of 1.5 means half the students take one subject and half take two.
Upfront Fees
- Franchise fee: ~$2,000 (in California, $2,000 of which $1,000 is a training deposit). This is not a typo — Kumon’s franchise fee is roughly 1/60th of Goddard’s.
- Materials fee: ~$2,000, non-refundable, due at signing. This covers the initial inventory of Kumon worksheets and curriculum materials.
A centre that raises its tuition keeps all of the increase. A centre that adds a student pays the franchisor again — and pays twice if that student enrols in both math and reading.
The Inversion
In a percentage-royalty system (Goddard, Primrose, Kiddie Academy), the franchisor earns more when your prices go up. In Kumon’s per-student system, the franchisor earns more when your headcount goes up. Price increases are yours to keep; enrolment growth costs you more in royalties.
This means break-even is a student count, not a revenue target. Your financial model should start with “how many students, in how many subjects, for how many months” — not “what gross revenue do I need.”
Franchise Model Comparison
Kumon’s fee structure is so different from the other education and childcare franchises on this site that a side-by-side comparison is more about contrasting franchise models than comparing competitive alternatives. These businesses serve different markets with different capital requirements.
| Brand | Franchise Fee | Royalty Type | Royalty Rate | Agreement Term |
|---|---|---|---|---|
| Kumon | ~$2,000 | Per-student flat fee | ~$38/student/subject/mo | 5 years |
| Goddard School | $135,000 | Percentage of revenue | 7% + up to 4% ad fund | 15 years |
| Primrose Schools | $80,000 | Percentage of revenue | 7% + 2% brand + 1% ad + 1% co-op | 15 years |
| Kiddie Academy | $70,000–$150,000 | Percentage of revenue | 7% + 2% brand | Lease-tied (15+ yr) |
| School of Rock | $49,500 | Percentage of revenue | 8% + 3% brand + up to 3% ad | 10 years |
Sources: each brand’s most recent FDD filing. This is a comparison of franchise structures, not competitive alternatives — Kumon is supplemental education, not childcare, and the buyer profile and capital requirement are fundamentally different.
What the FDD Does — and Does Not — Disclose
The absence of an Item 19 does not mean the FDD is empty. Several key terms are disclosed; the gap is specifically about financial performance.
What Is Known
- Franchise fee: ~$2,000 (of which $1,000 is a training deposit, in California)
- Materials fee: ~$2,000, non-refundable, due at signing
- Royalty structure: flat per-student, per-subject monthly fee (~$38–$42.75)
- Agreement term: 5 years, renewable
- Territory rules: disclosed in the FDD (specifics vary by market)
- Required qualifications: completed university degree, must pass math, reading and written assessment
- Owner-operator requirement: Kumon states absentee ownership is not suitable
What Is Not Known
- Revenue — average, median, or by quartile
- Operating costs — rent, staffing, materials replenishment
- Margins — gross or net
- Owner income — take-home pay or distributions
- Breakeven timeline — months to positive cash flow
- Staffing costs — number of instructors and wage benchmarks
Key Takeaways
- No Item 19 means no franchisor-verified earnings data. Every revenue and income figure you encounter for Kumon is an outside estimate. Build your projections from your own research and validation calls with existing franchisees, not from aggregator numbers.
- The royalty model is structurally different. A flat per-student fee instead of a percentage of revenue means your break-even is a headcount target, tuition increases are yours to keep, and adding students costs you more in royalties. Model it on students and subjects, not on revenue. Our per-student royalty break-even model builds the full calculation.
- Upfront costs are exceptionally low for a franchise. A ~$2,000 franchise fee and ~$2,000 materials fee put Kumon’s entry cost orders of magnitude below every other brand on this site. The total initial investment of $101,630–$233,780 (the figure two independent sources agree on) is still significant, but the franchisor’s share of it is minimal.
- The 5-year agreement term is the shortest here. Goddard and Primrose lock you in for 15 years; Kumon gives you 5. That is less commitment, but it also means less time to recoup a slow start — see the five-year agreement analysis for what that means for your exit, resale value, and leverage. The short term also mechanically inflates the annual turnover rate — our closure rate analysis unpacks why the ~20% headline number is misleading without context.