Mathnasium Learning Centers Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Mathnasium Learning Centers franchise requires a total initial investment of $127K – $166K, including a $49K franchise fee. Per the 2026 FDD, average unit revenue was $385K[2]. SBA 7(a) loans show a 2.6% charge-off rate across 85 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $127K – $166K
- 39th pct Education
- Avg gross sales
- $385K
- 15th pct Education
- Royalty
- N/A
- Units
- 1,047
- 80th pct Education
- SBA charge-off
- 2.6%
- % of SBA 7(a) loans not repaid · median varies by category
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 $127K – $166K including a $49K franchise fee.
- RETURNSAverage unit revenue of $385K/year (median $326K).
- RISKVerdict A (Strongest tier), verdict score 95/100 (higher is better). SBA loan charge-off rate of 2.6% across 85 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- SCALEEstablished system with 1,047 units across 23 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Mathnasium Franchisor LLC
- Parent company
- Mathnasium Funding LLC
- Ultimate parent
- Mathnasium Holdings, LLC (majority owned by Roark Capital Management, LLC affiliate)
- Predecessor
- Mathnasium Center Licensing, LLC (MCL)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Tyler Sgro
- Incorporated in
- Delaware
- HQ
- 5120 West Goldleaf Circle, Suite 400, Los Angeles, California 90056
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $53.4M
- vs $18.2M prior year
Overview
About
Franchisor of Mathnasium learning centers providing supplemental math instruction to children ages 4-17 using the Mathnasium Method, delivered at after-school learning centers.
- CEO
- Tyler Sgro
- Headquarters
- California
- Founded
- 2003
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 78% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $35K | $45K |
| Equipment, build-out, other | $43K | $72K |
| Total initial investment | $127K | $166K |
Source: Mathnasium Learning Centers 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $127K – $166K
- Top 40% of category vs category
- Liquid capital req'd
- $35K – $45K
- Middle of category vs category
- Franchise fee
- $49K – $49K
- Middle of category vs category
- Royalty
- 10% of monthly Gross Receipts; beginning in the 24th mont…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Base Royalty of $650/month per franchisee (additional $650/month per Base Royalty Acquisition), separate from the percentage/minimum royalty above |
| Technology fee | $266 |
| Transfer fee | $7K |
| Renewal fee | $7K |
What do units actually make?
Average unit sales run 56% below the education norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Mathnasium Learning Centers until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, 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.
Total invested capital · disclosed
$187K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Mathnasium Learning Centers 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 royalty rate, ad fund rate, 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $385K
- Per unit, per year
- Median gross sales
- $326K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Sample size
- 914 outlets
- vs category median 16 · large
- Range (low → high)
- $67K→$1.5M
- Cohort dispersion (min → max)
- Quartile band
- $176K→$693K
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 204 Education brands
vs Education averages
How Mathnasium Learning Centers Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,047
- Opened
- 63
- Last reporting year
- Closed
- 15
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.4%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 63
- Closed (3yr)
- 15
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
- 85
- Loan volume
- $13.9M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 2.6%
- 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)
- 97.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 44
- Defaults
- 1
- Typical loan rate
- 8.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 6116
- Jobs supported
- 1,006
- 7.2 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 47% went to startups / new businesses, 53% to established operators
Vintage analysis
Mathnasium Learning Centers charge-off rate by loan vintage
Top lenders financing Mathnasium Learning Centers franchisees
Showing 3 of 44 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mathnasium Learning Centers's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 13-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 2.6% — 84% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 2,500 |
| Franchisor can compete | Yes |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 13 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California (franchisor's headquarters county) |
| Governing law | Delaware |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- On-the-job training
- 44 hrs
- Ongoing training
- Required
- Site selection
- Franchisor reviews and accepts/rejects franchisee-proposed sites
- Franchisor financing
- 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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mathnasium Learning Centers franchise?
The total investment to open a Mathnasium Learning Centers franchise ranges from $127K – $166K, 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 Learning Centers franchise owners earn?
According to Item 19 of the Mathnasium Learning Centers FDD, the average gross sales per unit is $385K. The median is $326K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Mathnasium Learning Centers 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 Mathnasium Learning Centers FDD and qualifies whose outlets they describe.
What is Mathnasium Learning Centers's franchise failure rate?
Based on SBA 7(a) loan data, Mathnasium Learning Centers has a charge-off rate of 2.6% across 85 loans, meaning 2.6% 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 Learning Centers franchise locations are there?
As of their most recent FDD filing, Mathnasium Learning Centers has 1,047 total units in the United States, including 1,043 franchised units and 4 company-owned units. 63 new units were opened in the latest reporting year.
Is Mathnasium Learning Centers a good franchise to buy?
FranchiseVerdict rates Mathnasium Learning Centers as a A-grade franchise with a verdict score of 95 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
Are you the franchisor?
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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.