KumonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Kumon franchise requires a total initial investment of $74K – $166K, including a $2K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 14.6% charge-off rate across 84 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $74K – $166K
- 22nd pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- N/A
- Units
- 1,659
- 71st pct Education
- SBA default
- 14.6%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1983. Systems this mature have refined operations and brand recognition.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $74K – $166K including a $2K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 34/100. SBA loan charge-off rate of 14.6% across 84 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kumon North America, Inc.
- Parent company
- Kumon Institute of Education Company, Ltd. (KIE)
- Incorporated in
- DE
- HQ
- 301 Route 17 North, Rutherford, New Jersey 07070
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $144.5M
- vs $153.0M prior year
Overview
About
Kumon franchisees operate tutoring centers offering self-directed, individualized math and reading instruction primarily for K–12 students. Day-to-day operations include student intake and progress monitoring, parent communication, materials management, instructor hiring/training, and marketing to acquire and retain enrolled students.
- CEO
- Minoru Tanabe
- Headquarters
- NJ
- Founded
- 1958
- FDD year
- 2024
- States available
- 50
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
- Better than avg vs category
- Liquid capital req'd
- $16K – $22K
- Better than avg vs category
- Franchise fee
- $1K – $2K
- Better than avg vs category
- Royalty
- $36 times the number of full-paying students enrolled, an…
- Ad fund
- $220 per month for 18 months for New Center Marketing; th…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $4K |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Education averages
How Kumon Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,659
- Opened
- 54
- Last reporting year
- Closed
- 33
- Turnover rate
- 2.0%
- Company-owned
- 22
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +1.2%
- Net unit change last year
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 64
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.
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%
- 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
Vintage analysis
Kumon charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Kumon's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 34 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 270 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 128 hrs
- On-the-job training
- 68 hrs
- 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
FDD download
Kumon · FDD (2024) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 1,618 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 A-grade franchise with a risk score of 34 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent Kumon, you can request corrections or provide updated information.
Claim this brandOther Education franchises
Compare similar franchise opportunities in the Education category
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.