Independent Kumon Franchise Analysis
Per-student royalty at ~$38/month, a ~$2,000 franchise fee, no Item 19 financial performance disclosure, and a 5-year agreement term — in a mature network of ~1,710 US centres.
Intelligence Pillars
FDD & Financials
Per-student royalty model, ~$2,000 franchise fee, zero Item 19 disclosure, and fee load analysis against percentage-based competitors.
Explore →Location & Setup
1,000–1,500 sq ft retail suites, strip malls and shopping centres — not purpose-built facilities. What the buildout costs and where to look.
Explore →Operations & Licensing
Owner-operator required. University degree, proficiency assessment, daily hands-on management. What the Kumon Method looks like from behind the desk.
Explore →Financing
SBA 7(a) at the sub-$250K level, microloans, personal savings, and ROBS — financing a low-capital franchise with a different set of tools.
Explore →Market & Competition
Kumon vs Mathnasium, Sylvan, Huntington, and Code Ninjas in supplemental education — plus the franchise model contrast against high-capital childcare.
Explore →Owner Experiences
What the daily grading cycle, seasonal enrolment swings, and a 5-year agreement term actually mean for an owner-operator.
Explore →Key Investment Numbers
At $200/mo tuition, 150 students × 1.5 subjects, $8,550/mo to the franchisor is ~19% of gross. A 7% royalty on the same revenue would be $3,150.
The Per-Student Royalty: Why Kumon’s Economics Are Inverted
Most franchise systems charge a percentage royalty — 6%, 7%, 8% of gross revenue. Kumon does not. It charges a flat fee per student per subject, currently around $38 per month. That means the franchisor’s take is fixed against each enrolment, not pegged to what the franchisee charges for tuition.
At low enrolment, this is generous. A centre with 50 students studying an average of 1.5 subjects sends Kumon roughly $2,850 a month — well below what a percentage royalty would extract at the same revenue. But the arithmetic inverts as a centre scales. At 150 students, the royalty bill reaches $8,550 a month, which on $200/mo tuition is roughly 19% of gross — nearly triple a standard 7% royalty.
This is the central tension in Kumon’s financial model. The break-even analysis that works for a percentage-royalty franchise does not work here, because the royalty line grows with headcount, not with revenue. A tuition increase that lifts gross revenue does nothing to the royalty bill. A retention push that holds students longer lifts both revenue and royalty. The levers point in different directions depending on which metric moves.
Featured Analysis
The 20% Question
Kumon’s annual closure rate looks alarming. Here’s what the number actually includes, why it’s high, and what it means for your decision.
The Break-Even Headcount
How many students does a Kumon centre actually need before you take home a dollar? The model nobody else has published.
The 1,705-Name List
Kumon publishes no Item 19. Item 20 gives you 1,705 names. Here are the 15 questions that build the financial picture the FDD does not provide.
The AI Tutoring Question
A $7/month app versus a $200/month centre. Whether AI tutoring replaces what Kumon does — and what it means for your five-year investment.