Mathnasium Franchise Cost

Mathnasium is the strongest franchise opportunity in the tutoring category based on available data. That is a direct statement, and here is the evidence behind it.

The math-focused tutoring chain has 1,047 locations, a 2.6% SBA charge-off rate, disclosed financial performance, geographic territory protection, and a total investment of $127K – $166K. Among education franchises, those metrics put it in a class of its own.

What it costs

A Mathnasium franchise costs $127,316 to $165,846 per the 2024 FDD. The franchise fee is $49,000, which accounts for a large portion of the total investment. Beyond the franchise fee:

• Furniture and equipment: $17,000 to $25,000
• Working capital: $35,000 to $45,000
• Leasehold improvements, signage and the other Item 7 lines make up the rest; the brand page carries the full table.

The narrow investment range ($127K – $166K) is unusual and encouraging. It means the build-out costs are predictable. You are not facing a situation where your budget doubles because of construction overruns. Mathnasium centers occupy small retail spaces (typically 1,200-1,500 square feet) with modest build-out requirements.

Revenue and profit

Mathnasium discloses average gross sales of $385K. Gross sales are not profit. Our data does not include a franchisee net-income figure for Mathnasium, so we do not compute a payback period or a cash-on-cash return from it. Ask the current franchisees listed in Item 20 what a center actually keeps.

The 10.0% royalty: the trade-off

Mathnasium charges a 10.0% royalty on gross sales plus an advertising contribution. That comes off every dollar of revenue before rent, tutors and materials are paid.

The Education category average royalty is 7.6%. For comparison, Kumon's per-student fee structure can also reach effective rates in this range, but the sticker price on Mathnasium's royalty is high. The question is whether the unit economics justify it, and only current franchisees can tell you what a center keeps after the royalty is paid.

SBA performance: strong

Mathnasium has 85 SBA loans with a 2.6% charge-off rate. That is well below the Education category average of 10.6% and among the best SBA records for any tutoring or education brand.

For comparison, Kumon's 11.9% charge-off rate across 98 loans is more than four times higher. The combination of low investment, strong disclosed sales, and low charge-off rates creates a data profile that is internally consistent: the economics work, and the lending data confirms it.

Geographic territory protection

Mathnasium provides geographic area territory protection. This prevents the franchisor from placing another Mathnasium center within your defined territory. Given that education franchises depend on local family enrollment, territory protection is particularly valuable in this category.

Kumon, the primary competitor, does not offer any territory protection. This is a meaningful differentiator.

Growth: steady but not explosive

Mathnasium's latest FDD shows 63 openings and 15 closures on 1,047 total units, a N/A net unit growth rate. Kumon's comes to +1.9%, and the steady gains suggest the brand is adding units without overextending.

The risks

No franchise is without risk. Mathnasium's primary vulnerabilities:

• AI tutoring disruption: Tools like ChatGPT, Khan Academy, and purpose-built math tutoring apps are improving rapidly. Whether parents continue to pay for in-person tutoring when AI alternatives cost a fraction as much is an open question.
• Short 5-year term: Like Kumon, Mathnasium offers only a 5-year initial term, which limits long-term value building.
• Parent company risk: Mathnasium's parent company has faced litigation related to no-poaching agreements and cybersecurity issues at affiliated brands.
• Single-subject focus: Math-only instruction is a narrower market than general tutoring or enrichment programs.

The bottom line

Mathnasium has one of the strongest data profiles in the education franchise category: a $127K – $166K investment, $385K in average gross sales, a 2.6% SBA charge-off rate, and geographic territory protection. The 10.0% royalty is high; whether the unit economics justify it is the question to put to current franchisees.

The main risk is structural: whether in-person tutoring remains competitive against AI-powered alternatives over the next 5-10 years. That is a bet on the value of human instruction, and it is a bet worth making at this price point. See the full data on our Mathnasium profile and compare education franchises on the education franchise screener.

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