Math Reactor Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Math Reactor is a children's education franchise offering math tutoring and enrichment for K-12 students in center and studio formats. Franchisees run the centers, managing instructors, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A Math Reactor franchise requires a total initial investment of $52K – $247K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $52K – $247K
- 15th pct Education
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 6th pct Education
- Units
- 0
- 0th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · 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 $52K – $247K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSFigures from the audited financial statements of Math Reactor Franchising, LLC (the franchisor entity that Item 21 relies on), for the fiscal year ended December 31, 2022, stated in whole US dollars (no scaling). The Statement of Income reports Revenue of $0 (shown as a dash) for FY2022; the company organized September 14, 2021 and had not yet recognized franchise revenue. Net Loss was $(325,731). Only a single-year income statement is presented, so prior-year (yr2) revenue is not shown. Balance sheet reconciles: total assets $141,908 = total liabilities $274,391 + member's deficit $(132,483). Revenue is recognized under ASC 606 per Note 1.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Math Reactor Franchising, LLC
- Parent company
- Math Reactor Holdings, LLC
- Ultimate parent
- Graham Ventures, Inc.
- CEO title
- Chief Executive Officer
- David Graham
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 2880 Broadway Bend Drive, Building #1, Pearland, Texas 77584
- Auditor
- Salmon Sims Thomas & Associates
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- David Graham
- Headquarters
- TX
- Founded
- 2021
- FDD year
- 2023
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 77% below the typical education franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $28K | $30K | |
| Business Licenses & Incorporation | $200 | $1K | |
| Leasehold Improvements and Permits | $0 | $75K | |
| Fixtures, Furnishings & Equipment | $2K | $50K | |
| Computer Equipment and Technology | $1K | $4K | |
| Signage | $1K | $13K | |
| Architect/Engineering Fees | $0 | $10K | |
| Rent, Security Deposits and Utility Deposits | $200 | $7K | |
| Other Professional Fees | $500 | $3K | |
| Insurance Deposit | $800 | $1K | |
| Office Supplies | $100 | $2K | |
| Training Expenses | $1K | $3K | |
| Grand Opening Advertising | $8K | $8K | |
| Additional Funds (for the initial 3 months of operations) | $10K | $40K | |
| Total initial investment | $52K | $247K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $52K – $247K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $40K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- formula · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Total fee load | 11.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Math Reactor did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Math Reactor unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
52%
Within the 30–60% "attractive franchise" band
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: 2023 FDD
Financial Performance
Figures from the audited financial statements of Math Reactor Franchising, LLC (the franchisor entity that Item 21 relies on), for the fiscal year ended December 31, 2022, stated in whole US dollars (no scaling). The Statement of Income reports Revenue of $0 (shown as a dash) for FY2022; the company organized September 14, 2021 and had not yet recognized franchise revenue. Net Loss was $(325,731). Only a single-year income statement is presented, so prior-year (yr2) revenue is not shown. Balance sheet reconciles: total assets $141,908 = total liabilities $274,391 + member's deficit $(132,483). Revenue is recognized under ASC 606 per Note 1.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 11.0% (near the Education average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Math Reactor Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 10
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-risk investment with unproven franchisor financial stability, zero disclosed units, litigation history tied to non-compete violations, and complete absence of unit-level financial performance data.
Litigation (Item 3)
Code Ninjas, LLC filed a lawsuit and arbitration against a franchisee for non-compete violations; franchisee asserted counterclaims against Code Ninjas and David Graham (now Math Reactor CEO) alleging misrepresentations. Settled April 2020 with dismissal of all claims and termination of franchise agreements without refund.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Salmon Sims Thomas & Associates
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 100 verdict
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or accounting issues at franchisor level
- 02MEDZero disclosed units with unknown growth trajectory — impossible to validate system viability or franchisee success rates
- 03HIGHCEO litigation history involving non-compete violations and misrepresentation allegations with Code Ninjas — suggests pattern of aggressive/questionable business practices
- 04MINORNo Item 19 financial performance disclosure — cannot verify if average revenue or net income claims are achievable
- 05MINORDual royalty structure (6% vs 12%) creates unclear cost comparison and suggests different profitability models may not be equally viable
- 06MEDHigh initial investment range ($52K-$247K) paired with $500/mo minimum royalty but NO disclosed average unit volumes — franchisees bear significant downside risk
- 07HIGH10-year term is lengthy commitment given franchisor's going concern status and unproven track record
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Pearland, Texas (within 5 miles of franchisor's principal place of business) |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 1 |
View Item 3 litigation summary
Code Ninjas, LLC filed a lawsuit and arbitration against a franchisee for non-compete violations; franchisee asserted counterclaims against Code Ninjas and David Graham (now Math Reactor CEO) alleging misrepresentations. Settled April 2020 with dismissal of all claims and termination of franchise agreements without refund.
Items 10, 11
Training & Operations
- Classroom training
- 60 hrs
- On-the-job training
- 44 hrs
- Training location
- Virtually, at Math Reactor headquarters in Pearland, Texas, and/or at designated Math Reactor Centers
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- FranchiCzar
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: FranchiCzar
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Math Reactor · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Math Reactor franchise?
The total investment to open a Math Reactor franchise ranges from $52K – $247K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Math Reactor franchise owners earn?
Math Reactor 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 Item 19 in the Math Reactor 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 Math Reactor FDD and qualifies whose outlets they describe.
What is Math Reactor's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Math Reactor (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
Is Math Reactor a good franchise to buy?
FranchiseVerdict rates Math Reactor as a D-grade franchise with a verdict score of 33 out of 100 (higher is better), 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 Math Reactor, you can request corrections or provide updated information.
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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.