FranchiseVerdict
Math Reactor logo
FV-01587·CAUTIONStandard76

Math Reactor

Education - Children's ProgramsFranchising since 2022Website
Investment
$52K – $247K
21st pct Children's Pr…
Avg revenue
69th pct Children's Pr…
Royalty
6.0%
15th pct Children's Pr…
Units
0
0th pct Children's Pr…
SBA default

Bottom line

  • Total investment $52K – $247K including a $30K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 77/100.
  • 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
Math Reactor Franchising, LLC
Parent company
Math Reactor Holdings, LLC
Incorporated in
Texas
HQ
2880 Broadway Bend Drive, Building #1, Pearland, Texas 77584
Auditor
Salmon Sims Thomas & Associates
Audited financials
Franchisor revenue
$0
Most recent fiscal year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Math Reactor unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $52K–$247K
Working capital
$
FDD reports $10K–$40K

Unlevered ROIC · per unit

52%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$175K
Payback
23 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Math Reactor appears to be an educational tutoring/STEM center franchise offering math instruction to K-12 students. Franchisees operate either Center-based (lower royalty at 6%) or Studio-based (higher royalty at 12%) locations, managing curriculum delivery, student enrollment, instructor hiring, and local marketing within their protected territory.

CEO
David Graham
Founded
2021
FDD year
2023
States available
0

Item 7 · what it costs

The Vitals

Total investment
$52K – $247K
All-in to open one unit
Liquid capital
$10K – $40K
Cash you must have on hand
Franchise fee
$30K
Royalty
6.0%
Percentage of Net Sales with Monthly Minimum · typical 6–8%
Ad fund
5.0%
typical 3–5%
Total fee load
11.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
0
Opened
0
Last reporting year
Closed
0
Company-owned
0
Corporate units in the system
2021
0±0
Franchised units
2022
0
Franchised units
2023
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 20 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 20 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

77
Risk · 0-100
CAUTION77 / 100

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.

Score breakdown · what drove the 77 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial instability or accounting issues at franchisor level
  2. 02MEDZero disclosed units with unknown growth trajectory — impossible to validate system viability or franchisee success rates
  3. 03HIGHCEO litigation history involving non-compete violations and misrepresentation allegations with Code Ninjas — suggests pattern of aggressive/questionable business practices
  4. 04MINORNo Item 19 financial performance disclosure — cannot verify if average revenue or net income claims are achievable
  5. 05MINORDual royalty structure (6% vs 12%) creates unclear cost comparison and suggests different profitability models may not be equally viable
  6. 06MEDHigh initial investment range ($52K-$247K) paired with $500/mo minimum royalty but NO disclosed average unit volumes — franchisees bear significant downside risk
  7. 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

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
60 hrs
On-the-job training
44 hrs
POS system
FranchiCzar
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

24 numbers

Locked
(503) 378-••••
OR
(619) 525-••••
CA
(517) 335-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Math Reactor · FDD (2023) PDF

Single-page checkout · instant download · CSV export of contacts available separately above