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Education 995 Units

Mathnasium Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$112,936 – $149,616

Franchise Fee

$49,000

Royalty Rate

10.0%

Initial Investment Range

Low: $112,936 High: $149,616

The total initial investment to open a Mathnasium franchise ranges from $112,936 to $149,616, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $49,000.

Midpoint estimate: $131,276

Franchise Fee

$49,000

One-time initial fee

The Mathnasium 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 Mathnasium brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

10.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 12.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Monthly Royalty 10.0 PCT Initially 10% of monthly Gross Receipts. Beginning in 24th month of operation, the greater of (i) 10% monthly royalty or (ii) $1,500. Due on 10th day of following month. Various royalty rebates available for existing franchisees acquiring certain centers. Additional Center Incentive may waive up to $1,500/month for 12 months if conditions met. Subject to CPI adjustments.
Monthly Marketing Fee 2.0 PCT $250 plus 2% of monthly Gross Receipts. Due on 10th day of following month. For franchisees who became franchisees on or prior to March 4, 2013, the fee is 2% only (no $250 base).
Digital and Local Marketing Fee 1000.0 FIXED Minimum $1,000 per month (franchisee may pay more). Credited against local marketing requirement. Must begin paying 2 months before anticipated opening. Due on 10th day of each month. Supports Centralized Digital and Local Marketing Program.
Technology License Fee 186.0 FIXED Currently $186 per Center per month. Covers use of proprietary technology system (Radius) and data storage. Due on 10th day of following month. Payable starting the month after Franchise Agreement execution. Subject to increase to cover technology costs.
Annual Convention Fee 500.0 FIXED Currently $500 per attendee. Generally due in May. Covers one person only; additional attendees pay additional $500 each. Attendance required. Non-refundable even if unable to attend.
Administrative fee for late payment 100.0 FIXED $100 every 2 weeks until payment is made. Due beginning 1st day after payment is due. Payable if 1 day late on payments. If more than 1-month delinquent, franchisor may withdraw 110% of base and monthly royalty from previous month plus other fees.
Administrative fee for late submission of reports 100.0 FIXED $100 every 2 weeks until reports submitted. Due beginning 1st day after report is due. Reports for completed month currently due 7th day of following month.
Non-Compliance Fine 300.0 FIXED $300 per month for each non-complying incident. Due 30 days following receipt of written notice. Applies if franchisee fails to make changes requested in written notice or quality assurance report.
Returned payment service charge 60.0 FIXED $60 per returned payment by bank for insufficient funds. Due when requested by Mathnasium. Covers processing costs.
Shipping costs N/A VARIABLE Actual shipping costs. Due when incurred.
Payments for Chargeable Items N/A VARIABLE Optional supplemental teaching materials or promotional items for use or sale. Prices determined by Mathnasium. Due as stated on invoice.
Transfer Fee 7000.0 FIXED $7,000 payable on approval of transfer if franchisee transfers franchise.
Training Fee 3000.0 FIXED $3,000 non-refundable fee for transferees purchasing existing and operating Center. Due before training begins. Covers initial training for up to 2 people. Does not cover hotel or incidental costs.
Renewal Fee 7000.0 FIXED $7,000 upon renewal. May be paid in 14 monthly installments of $500 each at franchisee option. If paid by installments, collected via electronic withdrawal beginning first month of renewal term.
Initial training program tuition for additional trainees 750.0 FIXED $750 per person if more than 2 individuals attend initial training program. Due before training begins.
Additional Marketing Assessment N/A VARIABLE Pro rata amount determined by majority vote of all franchised Centers (one vote per Center). Due when incurred.
Local or regional cooperative advertising N/A VARIABLE Amount determined by cooperative. All money spent credited against local advertising requirement. Cooperatives of 2+ Centers. Company/affiliate Centers participate with one vote per Center.
Reimbursement of taxes N/A VARIABLE Actual amount of taxes assessed against franchisor due to franchisee operation. Due upon demand. Payable if state imposes such tax on franchisor.

What You Get

Category

Education

System Size

995 units

Franchise Score

66

out of 100

Mathnasium operates a tutoring franchise specializing in mathematics instruction for students K-12 through proprietary curriculum and one-on-one instruction. The brand focuses specifically on developing math confidence and proficiency in struggling students.

Financial Performance (Item 19)

Median Revenue

$316,794

per year, per location

Mean Revenue

$316,794

per year, per location

Profitability Estimate

Estimated Owner Profit

$50,687

per year

Profit Margin

16.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 2.6 years

Based on midpoint investment of $131,276 and estimated annual owner profit of $50,687.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

+47 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 948 951
2023 951 968
2024 968 995

Is a Mathnasium Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Mathnasium franchise opportunity:

Overall Score

66/100

Moderate opportunity

Est. Payback Period

2.6 yrs

Fast payback

Risk Level

N/A

Insufficient data

Mathnasium shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $316,794 and a combined fee burden of 12.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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