Children raising there hands

In Brief:

    • Toru Kumon was a high school math teacher at the time and began to create practice math worksheets for his son to practice.
    • Initial training at Kumon begins with preliminary homework assignments, training within a Kumon Center, electronic training, and a review of the worksheets and materials used in Kumon tutoring locations.
    • Aside from Kumon Workbooks, which the prospective franchisee may choose to sell at their location, the franchisee my only use Kumon’s materials at their tutoring center.
    • At the end of 2011, Kumon had a total of 1450 Centers in their franchise system, up by 116 locations from the beginning of the year.

Financial Summary

    • Initial Franchise Fee: $1,000
    • Startup Costs: $73,373 – $154,825
    • Royalty Fees: $15 – $38.25


The Story Behind the Kumon Franchise

The origins of the Kumon franchise can be traced back to 1954 when Takeshi Kumon’s mother found a math test in his pocket. Takeshi was in his second year of elementary school and his test scores were not meeting their usually high marks. Takeshi’s mother consulted her husband, Toru Kumon. Toru Kumon was a high school math teacher at the time and, to help his son, he began to create practice math worksheets so he could improve knowledge in the subject.

Toru wanted to emphasize self-learning in Takeshi and his other students. After much trial and error, Takeshi got more familiar with the practice sheets, developing study material, and he gradually improved his skills in creating study tools. Besides his son, Toru Kumon realized that many of his, and other, students in the high school also struggled with math studies because of difficulty with calculation skills. For that reason, Toru focused closely on developing his son’s calculation skills and created worksheets that would allow Takeshi to learn independently. Essentially, Toru realized students needed to learn how to teach themselves and that genuine academic ability is best built on independent progress.

Toru and Takeshi Kumon spent a half hour each night studying and practicing various math problems. Before long, Takeshi reached the level of differential and integral calculus when he was just in sixth grade! After witnessing his son’s success, Toru invited other neighborhood children to study in his home, providing them with the same materials given to Takeshi. Working half an hour each night, Toru’s other students also greatly improved their skills.

In 1958, Toru Kumon decided to open an office in Osaka, Japan, and several Math Centers. From there, the number of Kumon students increased steadily. Toru Kumon’s goal was to maximize the abilities of his students by giving them tools to study at their own individual level.

Since its origins, the Kumon franchise has emphasized self-learning and a child’s inherent potential to grow. Kumon enhances these skills through a practice of reading, writing, and calculation while encouraging children to achieve self-fulfillment through education.

Photo: Steven Depolo via Flickr/Creative Commons

Enrich A Child’s Mind And Join The Kumon Family

1. Low Startup Costs

Contributing to a child’s educational success is priceless, and starting a business that concentrates on this costs very little.

2. Ongoing Support and Training

Kumon Center has been rated as one of the top tutoring centers in the nation and they have maintained this position for almost two decades. This is because of their dedication to providing franchisees with the necessary training and tools to help them thrive in their business. Staff within the Kumon offices play a key role in supporting franchisees in the administration of their programs and the development and growth of their learning center. All materials the students use are given to franchisees so they know what they are learning. They are notified of any updates made to the curriculum.

Initial training at Kumon begins with preliminary homework assignments, training within a Kumon Center, electronic training, and a review of the worksheets and materials used in Kumon tutoring locations. Typically, the Kumon Start-Up training program lasts about six months. Once this program is complete, additional classroom training is required. Only after this is complete is the franchisee awarded a Kumon franchise. However, if the prospective franchisee fails to complete the program, the Franchise Agreement is terminated.

3. Generous Business Incentives

If the low startup fees didn’t excite you enough, you will be happy to hear that Kumon provides $19,000 to get your business up and running!

4. Change Your Life and Your Community

Franchisees are not just making a financial investment, it is an emotional investment as well. Owning a Kumon Center means getting to know the students you are positively impacting and their grateful parents. This academic advantage will carry them through their educational careers and beyond, and you will be there to witness it all. It is a rewarding experience you can not pass up.

 FDD Summary

Initial Franchise Fee: $1,000

This fee is due when signing the Franchise Agreement and is obtaining your first Kumon Center franchise. This fee is not refundable.

Monthly Royalty Fees: $15 – $38.25

Kumon’s royalty fees are separated into three categories:

  • Initial Enrollment Royalty: $15.00
    • The fee is multiplied by the number of newly enrolled students and is to be paid monthly.
  • Monthly Royalty During Temporary License Period (TLP): $19.13 – $38.25
    • $38.25 is multiplied by the number of full-payment enrolled students
    • $19.13 is multiplied by the number of partially exempt and/or prorated tuition students for each Subject-Franchise.
  • Monthly Royalty after completing the TLP: $17.00 – $34.00
    • $34.00 is multiplied by the number of full-payment enrolled students
    • $17.00 is multiplied by the number of partially exempt and/or prorated tuition students for each Subject-Franchise.

Estimated Initial Investment: $73,373 – $154,825

Kumon provides a guess of how much the startup costs may be when opening your first franchise. This range of fees is broken down in the table below:

Name of Fee Low High
Training Agreement Deposit $500
Expenses While Training $5,150 $8,880
Initial Franchise Fee $1,000
Initial Purchase of Materials $1,000
Architect Design $0 $9,500
Leasehold Improvements $29,500 $60,000
Security Deposit, if applicable $0 $15,000
Rent $2,500 $5,000
Furniture, Signs, Equipment, & Supplies $3,400 $12,000
Notebook Computer at Kumon Center $400 $2,000
Professional Fees $1,000 $3,000
Liability Insurance $475
Business License, Name Registration $100 $200
Kumon Lead Management Telephone System $480 $600
Recommended Reading List $2,550
Fingerprinting, Criminal Background Check $18 $60
Payroll Cost for Assistants $6,300 $7,560
New Center Marketing $6,000 $8,000
Additional Funds $13,500 $18,000
Total $73,373 $154,825

Kumon offers entrepreneurs low startup costs and a generous chunk of change to help get your business started, but nothing is more rewarding than contributing to a child’s education. Because of your efforts as a Kumon franchisee, you will be able to see their knowledge improve and feel you are making a positive difference.

Disclaimer: The above information was derived from the year 2019 FDD of Kumon. This data may not reflect the most current information. AskMrFranchise and affiliates are not responsible for any act or failure to act in reliance upon this report, article, data, and/or information. None of the information mentioned above should be used to substitute or replace consultation with legal or other professionals.


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