How Much Does a Kumon Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$74K – $166K
Franchise Fee
$2K
Royalty
$36 times the number of full-paying students enrolled, and $18 times the number of partially exempt and/or prorated tuition students for each Subject-Franchise
Ad Fund
$220 per month for 18 months for New Center Marketing; thereafter, at least the minimum amount set forth in the Operations Manual
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Kumon is $2K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Kumon franchise requires a total investment of $74K – $166K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $16K to $22K.
Ongoing Costs
Beyond the initial investment, Kumon franchisees pay ongoing fees. The royalty structure is: $36 times the number of full-paying students enrolled, and $18 times the number of partially exempt and/or prorated tuition students for each Subject-Franchise. The ad fund contribution is: $220 per month for 18 months for New Center Marketing; thereafter, at least the minimum amount set forth in the Operations Manual.
Net Worth & Liquid Capital Requirements
Kumon requires working capital of $16K – $22K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Kumon does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Kumon?
SBA Loans Issued
53
Default Rate
15.4%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Kumon has 53 SBA-backed loans on record. The default rate is 15.4%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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