Math Reactor Franchise Cost, Revenue & Review 2026
- Investment
- $131K – $247K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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 $131K – $247K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. 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. FranchiseVerdict grade: D (Below 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $131K – $247K
- 39th pct Education
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 7th 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 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 $131K – $247K including a $30K franchise fee, 6.0% ongoing royalty.
- 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 D (Below average), verdict score 33/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (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
- Math Reactor Franchising, LLC
- Parent company
- Math Reactor Holdings, LLC
- FDD Item 1, page 10 of the 2023 FDD
- Ultimate parent
- Graham Ventures, Inc.
- FDD Item 1, page 10 of the 2023 FDD
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 10
2 other brands on this site name Graham Ventures, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2023 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 is about typical for a education franchise (near the category median).
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee (Note 2) | $28K | $30K | |
| Business Licenses & Incorporation (Note 3) | $200 | $1K | |
| Leasehold Improvements and Permits (Note 4) | $35K | $75K | |
| Fixtures, Furnishings & Equipment (Note 5) | $30K | $50K | |
| Computer Equipment and Technology (Note 6) | $2K | $4K | |
| Signage (Note 7) | $8K | $13K | |
| Architect/ Engineering Fees (Note 8) | $4K | $10K | |
| Rent, Security Deposits and Utility Deposits (Note 9) | $4K | $7K | |
| Other Professional Fees (Note 10) | $500 | $3K | |
| Insurance Deposit (Note 11) | $800 | $1K | |
| Office Supplies (Note 12) | $500 | $2K | |
| Training Expenses (Note 13) | $1K | $3K | |
| Grand Opening Advertising (Note 14) | $8K | $8K | |
| Additional Funds (for the initial 3 months of operations) (Note 15) | $10K | $40K | |
| Total initial investment | $131K | $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
- $131K – $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%
- Set by a 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 net sales |
| Marketing / ad fund | 5.0% of net 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 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 Math Reactor 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, 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: 2023 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.
Fee burden
Total ongoing fee load of 11.0% — above the Education median of 9.0%.
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.
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 Math Reactor 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 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- LA 1
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.
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)
Subject: the franchisor is a named party (defendant).
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
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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.
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
- 01MEDZero disclosed units with unknown growth trajectory — impossible to validate system viability or franchisee success rates
- 02HIGHCEO litigation history involving non-compete violations and misrepresentation allegations with Code Ninjas — suggests pattern of aggressive/questionable business practices
- 03MINORNo Item 19 financial performance disclosure — cannot verify if average revenue or net income claims are achievable
- 04MINORDual royalty structure (6% vs 12%) creates unclear cost comparison and suggests different profitability models may not be equally viable
- 05MEDHigh initial investment range ($52K-$247K) paired with $500/mo minimum royalty but NO disclosed average unit volumes — franchisees bear significant downside risk
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 territory |
| 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
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 $131K – $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 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 Math Reactor?
Math Reactor is franchised by Math Reactor Franchising, LLC. Its parent company is Math Reactor Holdings, LLC. The ultimate parent named in the FDD is Graham Ventures, Inc.. Source: FDD Item 1, 2023 filing.
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). 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.