Complete investment analysis based on official FDD data
Total Investment
$73,123 – $165,360
Franchise Fee
$2,000
Royalty Rate
N/A
The total initial investment to open a Kumon franchise ranges from $73,123 to $165,360, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $2,000.
Midpoint estimate: $119,242
$2,000
One-time initial fee
The Kumon franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Kumon brand and is included in the total initial investment range above.
Royalty Fee
N/A
Ad/Marketing Fund
N/A
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Initial Enrollment Royalty Fee | 30.0 | FIXED | For each reporting month, $30 times the number of newly enrolled students. Student can return without fee if within one reporting period (one calendar month). Fee waived if student already enrolled in one subject and registers for second subject. |
| Monthly Royalty During Temporary License Period (TLP) - Full Payment Students | 40.5 | FIXED | During TLP: $40.50 per full-payment student. Increases to $42.75 on January 1, 2026. Paid via EFT on the 17th or next business day. If underreporting occurs and not terminated, franchisee pays TLP royalty rate for 3 years. |
| Monthly Royalty During Temporary License Period (TLP) - Partially Exempt/Prorated Students | 20.25 | FIXED | During TLP: $20.25 per partially exempt/prorated student. Increases to $21.38 on January 1, 2026. Paid via EFT. |
| Monthly Royalty After Completing TLP - Full Payment Students | 36.0 | FIXED | After TLP: $36 per full-paying student. Increases to $38 on January 1, 2026. Paid via EFT. Royalty rates can change with 60 days notice; franchisee can terminate on 60 days notice if unwilling to pay increased rate. |
| Monthly Royalty After Completing TLP - Partially Exempt/Prorated Students | 18.0 | FIXED | After TLP: $18 per partially exempt/prorated student. Increases to $19 on January 1, 2026. Paid via EFT. |
| Administrative Fee for Late Payment | 1.5 | PCT | 1.5% on the overdue amount each month or $75, whichever is higher. Charged each month until past due amounts paid or promissory note signed. Paid through EFT. |
| Late or Inaccurate Report Fee | N/A | VARIABLE | $200 for first month; $500 for second month; $1,000 for third month, with increments of $1,000 per month thereafter. Applies to failure to submit complete and accurate reports on time for Instructor B Reports, Student Application Forms, Placement Tests, and Achievement Tests. Reports due by 11:59 PM local time on 6th day of following month. Paid through EFT. |
| Insufficient Funds | 25.0 | FIXED | $25 per EFT attempt that has insufficient funds to cover the amount owed. Covers Kumon's costs of failed EFT attempts. |
| Insurance | 4.8 | FIXED | $4.80 per Math student per year, billed twice yearly ($2.40 per invoice). Increases to $5.80 per year ($2.90 per invoice) on June 1, 2025. Optional participation in Kumon's insurance program. If not participating, must provide certificate of insurance meeting minimum requirements. |
| Shipping Costs for Materials | N/A | VARIABLE | Currently billed at $47 or actual shipping costs, whichever is less, for ground shipping of initial monthly order. Additional or expedited orders charged at cost. Kumon retains title to Materials until given to students. Costs subject to change with 30 days notice. |
| Relocation Fee | 2000.0 | FIXED | $2,000 payable when Center opens at new location if fewer than 80% of enrolled students transfer to the new location. If more than 80% transfer, fee is not charged. |
| Payments for Chargeable Items Purchased from Kumon | N/A | VARIABLE | See Exhibit A. Optional purchase of supplemental teaching materials and promotional items. Kumon can discontinue sale or change prices without notice. |
| Liquidated Damages | N/A | VARIABLE | Applies if: (1) franchisee voluntarily terminates without required advance written notice; (2) franchisee proposes transfer before final approval or fails to resume operating after disapproval; (3) Franchise Agreement automatically terminated under Section 14.3. Kumon may waive if reasons justified. |
| Temporary Transfer to Us | 10.0 | PCT | Applies if: (1) franchisee absent without proper management provision; (2) absent without acceptable arrangements; (3) franchisee/owners/employees charged with crime against children or involving moral turpitude; (4) conduct creating crisis or damage to Kumon Brand. Also includes reimbursement of out-of-pocket costs incurred by Kumon. |
| New Center Marketing Fee | 300.0 | FIXED | $300 per month commencing on the 7th month after opening (or takeover) of Center. Covers required participation in digital advertising services program conducted by third-party supplier designated by Kumon. Kumon collects and remits to third-party supplier. Equates to $3,600 per year. |
| Advertising Contribution | N/A | VARIABLE | Kumon recommends spending at least $4,800 annually on local advertising, but currently not required. Required to pay New Center Marketing Fee ($3,600/year). Kumon can establish national/regional advertising fund and reallocate local advertising funds to such fund(s) in its discretion. |
| Audit Fees and Expenses | N/A | VARIABLE | Applies if Kumon examines/audits Center's records and discovers underreporting, failure to report, or misrepresentation of any student enrolled or required to be enrolled. |
| Indemnification | N/A | VARIABLE | Franchisee must indemnify and hold Kumon harmless from any claim, liability, loss or expense arising out of franchisee's activities. Includes reimbursement for attorneys' fees, court costs, etc. |
Category
Education & Tutoring
System Size
1,671 units
Franchise Score
out of 100
Kumon operates an after-school tutoring franchise focused on mathematics and reading instruction through a self-learning methodology. The brand emphasizes individualized learning progression and building foundational skills in students worldwide.
Avg. Annual Closure Rate
1.7%
Low risk — below industry average
Net Unit Growth
+65 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 1606 | +43 | -28 | — | 1618 |
| 2023 | 1618 | +52 | -30 | — | 1637 |
| 2024 | 1637 | +65 | -20 | — | 1671 |
Based on the FDD data, here is a data-driven snapshot of the Kumon franchise opportunity:
Overall Score
65/100
Moderate opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
Low
1.7% annual closure rate
Kumon shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Kumon franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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