Kumon Franchise Cost, Revenue & Review 2026
- Investment
- $74K – $166K
- Disclosed sales
- not disclosed
- SBA charge-off
- 14.6%
- on 84 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Kumon is an after-school tutoring franchise delivering its self-paced math and reading program to K-12 students. Franchisees run learning centers handling enrollment, student progress, and instructor staffing.
FranchiseVerdict summary · 2026
A Kumon franchise requires a total initial investment of $74K – $166K, including a $2K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 14.6% charge-off rate across 84 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $74K – $166K
- 22nd pct Education
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 1,659
- 81st pct Education
- SBA charge-off
- 14.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $74K – $166K including a $2K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 69/100 (higher is better). SBA loan charge-off rate of 14.6% across 84 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +19 franchised outlets in the latest year (54 opened, 33 closed); 20 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kumon North America, Inc.
- Parent company
- Kumon Institute of Education Company, Ltd.
- FDD Item 1, page 9 of the 2024 FDD
- CEO title
- President, Chief Executive Officer and Chief Operating Officer
- Minoru Tanabe
- Incorporated in
- DE
- HQ
- 301 Route 17 North, Rutherford, New Jersey 07070
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $153.0M
- vs $144.5M prior year
Overview
About
- CEO
- Minoru Tanabe
- Headquarters
- NJ
- Founded
- 1983
- FDD year
- 2024
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical education franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $2K | $2K |
| Working capital (3–6 mo) | $16K | $22K |
| Equipment, build-out, other | $56K | $142K |
| Total initial investment | $74K | $166K |
Source: Kumon 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $74K – $166K
- Top 40% of category vs category
- Liquid capital req'd
- $16K – $22K
- Middle of category vs category
- Franchise fee
- $2K – $2K
- Top 40% of category vs category
- Royalty
- $36 per full-paying student per month per Subject-Franchi…
- Ad fund
- $220 per month for 18 months for New Center Marketing; th…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Per-student monthly flat fee: $36/full-paying student per Subject-Franchise after TLP ($40.50 during TLP); $18/partially exempt student after TLP ($20.25 during TLP) |
| Training fee | $1K |
| Transfer fee | $2K |
| Renewal fee | $2K |
| Inventory (initial) | $2K – $2K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Kumon makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Kumon unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (+4.4% 3-year CAGR) with 1,659 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How Kumon Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,659
- Opened
- 54
- Last reporting year
- Closed
- 33
- Turnover rate
- 1.9%
- Company-owned
- 22
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +4.4%
- Net unit change over 3 years
- 3-yr CAGR
- +4.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 20
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 163
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
1,613 current owners across 50 states; 1 former (terminated, transferred or not renewed) listed separately.
- CA 347
- TX 164
- NJ 115
- NY 97
- FL 90
- IL 67
- GA 66
- VA 48
- MD 46
- MA 44
- MI 43
- PA 43
- +38 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 84
- Loan volume
- $19.0M
- Median loan
- $186K
- 50th percentile
- Charge-off rate
- 14.6%
- on 84 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 84.6%
- 5-yr charge-off
- 5.0%
- Loans approved 2021+
- Active lenders
- 46
- Defaults
- 7
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 23.8%
- brand beats franchise avg ↓
- Jobs supported
- 666
- 4.8 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 46% went to startups / new businesses, 54% to established operators
Franchise vs independent — in exam preparation and tutoring, franchised businesses charge off at 23.8% vs 19.2% for independents — franchising is associated with 24% higher SBA default risk in this category.
Vintage analysis
Kumon charge-off rate by loan vintage
Top lenders financing Kumon franchisees
Showing 3 of 46 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Kumon from SBA 7(a) FOIA data.
- Principal loss rate
- 3.3%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.86%
- Avg chargeoff amount
- $114K
- Lender concentration
- 13.2%
- Job velocity
- 4.8 per $100K
- Startup risk premium
- -25.0pp
- NAICS benchmark
- 31.0%
- NAICS 611691
- Jobs supported
- 666
Top SBA lendersTop lender holds 13% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 7 | $2.2M | 66.7% |
| 2 | Manufacturers and Traders Trust Company | 4 | $515K | 0.0% |
| 3 | Newtek Small Business Finance, Inc. | 3 | $2.3M | 0.0% |
| 4 | JPMorgan Chase Bank, National Association | 3 | $277K | 50.0% |
| 5 | BayFirst National Bank | 3 | $215K | 0.0% |
| 6 | Bank of America, National Association | 2 | $585K | 0.0% |
| 7 | Wells Fargo Bank National Association | 2 | $579K | 0.0% |
| 8 | Mission Valley Bank | 2 | $967K | 0.0% |
| 9 | First Merchants Bank | 2 | $159K | N/A |
| 10 | Central Pacific Bank | 2 | $50K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 10 | 2 | 40.0% |
| TXTexas | 7 | 1 | 16.7% |
| AZArizona | 3 | 0 | 0.0% |
| CTConnecticut | 3 | 1 | 100.0% |
| MDMaryland | 3 | 0 | 0.0% |
| NJNew Jersey | 3 | 0 | -- |
| FLFlorida | 2 | 0 | 0.0% |
| HIHawaii | 2 | 0 | 0.0% |
| MIMichigan | 2 | 0 | -- |
| MNMinnesota | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Kumon presents moderate-to-high risk due to system contraction, opaque unit economics, enrollment-dependent royalties, territorial vulnerability, and absence of financial performance disclosures.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenues of Kumon North America, Inc. and Subsidiaries for FY ended Dec 31, 2023: franchise fees and royalties $144,017,675; sales of publications/supplies $1,574,732; tuition company-owned centers $4,561,501; other revenue $2,878,508.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 69 / 100 verdict
- 01MINORFranchise system declining at 1.2% YoY with only 1,659 units—suggests market saturation or franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of the $73,783–$165,920 investment ROI claim
- 03MINORRoyalty structure based on student enrollment ($36/full-paying, $18/partial) creates unpredictable, potentially unstable cash flow with no minimum guarantees
- 04MINORUnprotected territory exposes franchisees to direct competition from other Kumon franchisees and company-owned centers
- 05MEDVery low franchise fee ($2,000) relative to total investment suggests high hidden costs or ongoing capital requirements not disclosed upfront
- 06MED5-year term is short; renewal risk and lack of disclosed renewal rates increase uncertainty
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 128 hrs
- On-the-job training
- 44 hrs
- Training location
- Online/Home and designated Kumon Centers and branch offices
- Ongoing training
- Required
- Site selection
- Franchisee selects, Kumon approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- CMS Standard / KLMSS / Kumon Connect
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CMS Standard / KLMSS / Kumon Connect
Item 20 · call current owners
Franchisee Contacts
1,614 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Kumon franchise?
The total investment to open a Kumon franchise ranges from $74K – $166K, with an initial franchise fee of $2K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Kumon franchise owners earn?
Kumon makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Kumon?
Kumon is franchised by Kumon North America, Inc.. Its parent company is Kumon Institute of Education Company, Ltd.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Kumon FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Kumon FDD and qualifies whose outlets they describe.
What is Kumon's franchise failure rate?
Based on SBA 7(a) loan data, Kumon has a charge-off rate of 14.6% across 84 loans, meaning 14.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Kumon franchise locations are there?
As of their most recent FDD filing, Kumon has 1,659 total units in the United States, including 1,637 franchised units and 22 company-owned units. 54 new units were opened in the latest reporting year.
Is Kumon a good franchise to buy?
FranchiseVerdict rates Kumon as a B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.