MathnasiumFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mathnasium franchise requires a total initial investment of $113K – $150K, including a $49K franchise fee and an ongoing 10.0% royalty[2]. Per the 2024 FDD, average unit revenue was $345K[2]. SBA 7(a) loans show a 1.8% charge-off rate across 109 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $113K – $150K
- 32nd pct Education
- Avg gross sales
- $345K
- 16th pct Education
- Royalty
- 10.0%
- 46th pct Education
- Units
- 972
- 70th pct Education
- SBA default
- 1.8%
- 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
Only 1.8% of 109 SBA loans charged off, well below the 16% franchise average.
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
88% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $113K – $150K including a $49K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $345K/year (median $304K), with an estimated 88% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 15/100. SBA loan charge-off rate of 1.8% across 109 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Mathnasium Franchisor LLC
- Parent company
- Mathnasium Funding LLC
- Ultimate parent
- Roark Capital Management, LLC
- Predecessor
- Our predecessor and our indirect parent company is Mathnasium Center Licensing
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5120 West Goldleaf Circle, Suite 400, Los Angeles, California 90056 USA
- Auditor
- Armanino LLP
- Audited financials
- Franchisor revenue
- $42.6M
- vs $47.2M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Mathnasium Center Licensing Canada
- Mathnasium International Franchising
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Tyler Sgro
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2024
- States available
- 46
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $32K | $40K |
| Equipment, build-out, other | $32K | $61K |
| Total initial investment | $113K | $150K |
Source: Mathnasium 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$38K
11.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $113K – $150K
- Better than avg vs category
- Liquid capital req'd
- $32K – $40K
- Near category avg vs category
- Franchise fee
- $27K – $49K
- Near category avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
- Payback period
- 1.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $186 |
| Training fee | $3K |
| Transfer fee | $7K |
| Renewal fee | $7K |
| Total fee load | 12.0% of rev |
Financial Performance
- Avg gross sales
- $345K
- Per unit, per year
- Median gross sales
- $304K
- Avg p&l bottom line
- $116K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 88.2%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Reported Gross Receipts and P&L Expenses
- Sample size
- 832 units
- vs category median 14 · large
- Range (low → high)
- $46K→$1.3M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Mathnasium Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 972
- Opened
- 43
- Last reporting year
- Closed
- 25
- Turnover rate
- 2.6%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.8%
- Net unit change last year
- 3-yr CAGR
- +2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 93
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 46 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
- 109
- Loan volume
- $16.9M
- Median loan
- $155K
- average
- Charge-off rate
- 1.8%
- 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)
- N/A
- 5-yr charge-off
- 14.3%
- Loans approved 2021+
- Active lenders
- 57
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 1.8% charge-off rate across 109 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
3 case reference(s): 0 pending, 9 settled.
Largest disclosed settlement: $650,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Armanino LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 15 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Geographic Area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 3 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 9 settled.
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 46 hrs
- Training location
- On-site at franchisee's restaurant
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Radius
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Radius
Item 20 · call current owners
Franchisee Contacts
980 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mathnasium · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mathnasium franchise?
The total investment to open a Mathnasium franchise ranges from $113K – $150K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mathnasium franchise owners earn?
According to Item 19 of the Mathnasium FDD, the average gross sales per unit is $345K. The median is $304K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Mathnasium's franchise failure rate?
Based on SBA 7(a) loan data, Mathnasium has a charge-off rate of 1.8% across 109 loans, meaning 1.8% 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 Mathnasium franchise locations are there?
As of their most recent FDD filing, Mathnasium has 972 total units in the United States, including 948 franchised units and 4 company-owned units. 43 new units were opened in the latest reporting year.
Is Mathnasium a good franchise to buy?
FranchiseVerdict rates Mathnasium as a A-grade franchise with a risk score of 15 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.
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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.