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Education & Tutoring 1,671 Units

Kumon Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$73,123 – $165,360

Franchise Fee

$2,000

Royalty Rate

N/A

Initial Investment Range

Low: $73,123 High: $165,360

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

Franchise Fee

$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.

Ongoing Fees

Royalty Fee

N/A

Ad/Marketing Fund

N/A

Other Ongoing Fees

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.

What You Get

Category

Education & Tutoring

System Size

1,671 units

Franchise Score

65

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.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.7%

Low risk — below industry average

Net Unit Growth

+65 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 1606 +43 -28 1618
2023 1618 +52 -30 1637
2024 1637 +65 -20 1671

Is a Kumon Franchise Worth It?

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.

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