Bottom line
- Total investment $113K – $150K including a $49K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $345K/year (median $304K). Estimated payback in 1.1 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 147 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Mathnasium unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mathnasium units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$276K
on $1.4M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
Franchisees operate brick-and-mortar math tutoring centers serving K-12 students through one-on-one and group instruction. Day-to-day operations include student enrollment/retention, hiring and managing tutors, curriculum delivery, parent communication, and local marketing to drive membership sales and reduce churn.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mathnasium presents moderate-to-cautionary risk: stagnant unit growth, unverified financials, parent company litigation history, and high royalty burden warrant careful validation of actual franchisee profitability.
Score breakdown · what drove the 44 / 100 rating
- 01MEDMinimal unit growth of 1.8% YoY suggests system is stagnating or mature with limited expansion
- 02MINORNo Item 19 financial performance representations means average revenue/net income figures are unverified and may not reflect typical franchisee experience
- 03HIGHParent company litigation history (Arby's, Dunkin') regarding no-poaching and cybersecurity indicates corporate governance and operational risks that could affect franchise operations
- 04MINORHigh royalty burden at 10% plus typical 6-8% marketing fund reduces net margins significantly from claimed $115,743 average
- 05MINORTutoring/education sector vulnerability to economic downturns, school funding changes, and post-pandemic enrollment normalization
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mathnasium · FDD (2024) PDF