Are you looking for an investment opportunity in the education sector? Well, what better than a franchise that is not only profitable but also affordable to invest in?
Yes, we are talking about Mathnasium!
If you want to know how much does a Mathnasium franchise owner make? What is its profit earning potential, investment amount requirement, etc. then make sure you read this guide till the end!
About Mathnasium
Mathnasium is an American supplemental math learning franchise and education brand that was founded by entrepreneurs Peter Markovitz and David Ullendorff in the year 2002.
The company started with a goal to make math learning easy and understandable so that kids can enjoy this subject.
In 2003, they started offering franchises, and today Mathnasium has grown to nearly 1,100 locations worldwide, including centers in North America, Europe, South America, Asia, and the Middle East.
Mathnasium is one of the lowest-cost franchises that you can invest in and has been named the best-bet franchise opportunity by Franchise Business Review, Franchise Gator, Entrepreneur magazine, and many more.
If you want to know about this franchise opportunity in detail, then keep on reading!
((https://mathnasiumfranchise.com/))
How Much Does A Mathnasium Franchise Owner Make?
As per Mathnasium FDD 2022, a Mathnasium franchise owner makes an average of $270,000 in revenue, with the top 50% of Mathnasium franchise owners making as much as much as $336,945 in revenue.
This is an average figure, and based on the skills, location, teaching ability, etc., of the franchise owner and their staff, you might be able to make more or even less than this average revenue amount.
Mathnasium Franchise Investment Breakdown
| TYPE OF EXPENDITURE | AMOUNT |
| Initial Franchisee Fee | $49,000 for first franchise, $26,500 for an additional franchise |
| Base Royalty Fee | $500 per month |
| Expenses While Training | $2,500 to $3,000 |
| Technology Fee | $110 per month |
| Rent (1st & last month’s rent) | $6,000 to $14,000 |
| Additional Technology Fee | $45 |
| Furniture, Signs, Equipment & Supplies | $10,000 to $17,000 |
| Paint, Carpet & Tenant Improvements | $2,500 to $10,000 |
| Insurance | $2,000 to $3,500 annually |
| Professional Services (Legal and/or Accounting) | $1,300 to $2,000 |
| Business License, Name Registration | $1,200 to $1,500 |
| Phone & Utilities | $500 to $1,000 |
| Pre-Open Advertising | $4,000 |
| Video surveilance & related equipment | $500 to $2,500 |
| Additional Funds (4 Months) | $32, 000 to $40, 000 |
| TOTAL (1st Center) | $112,860 to $149,155 |
| TOTAL (Subsequent Center) | $90,360 to $126,655 |
Startup & Ongoing Cost of Mathnasium Franchise
| Mathnasium Franchise Fee | $49,000 |
| Mathnasium Franchise Cost | $112,860 – $148,655 |
| Royalty Fee | 10% + $500/month |
| Advertising Fee | 2% + $250/month |
| Term of Agreement | 5 Years |
| Is franchise term renewable? | Yes |
| Renewable Franchise Fees | $7,000 |
How Much Does A Mathnasium Employee Earn?
According to Payscale, Mathnasium pays an average of $14.35 an hour to its employees; with the average pay ranging between $9.16 an hour to $31.16 an hour.
So a Mathnasium employees who have the job title of Mathematics Teacher make the most money with an average of $15.70 an hour, while employees who have the job title of Tutor make the least with an average rate of $12.34 an hour.
Pros & Cons Of Mathnasium Franchise
Pros Of Mathnasium Franchise
- Tried-and-tested marketing strategy
- Low-cost tools and simple techniques
- Allocates a Startup Specialist (SUS)
- Low-cost investment
- Provides training
- Simple qualification process
Cons Of Mathnasium Franchise
- External competition
- Minimal profitability
Mathnasium Franchise Average Revenue & Profit
Mathnasium Franchise owner easily makes an average revenue of $270,000 a year, with the top 50% earning as much as $336,945 a year.
After taking the franchise fee, royalty fee, and all other expenses into account and after considering a profit margin of 15%-20%, a Mathnasium franchise owner makes an estimated net profit of $40,500–$54,000 annually.
The revenue and profit-earning potential of the Mathnasium franchise may vary depending on the skills of the teacher, location, advertisement, demand in the area, etc. So you might be able to make slightly more or less than this average figure.
Mathnasium Franchise Failure Rate
To figure out Mathnasium franchise failure rate let us have a look at the number of Mathnasium centers that opened and closed between 2019-2021 below:
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 2020 2021 | 860 935 927 | 935 927 948 | +75 -8 +21 |
| Company-Owned | 2019 2020 2021 | 13 7 7 | 7 7 3 | -6 0 -4 |
| Total Outlets | 2019 2020 2021 | 873 942 934 | 942 934 951 | +69 +8 +17 |
As you can see from the data in the table above, the Mathnasium franchise failure rate is low.
This is a very low-cost franchise opportunity, and for any other education franchise, you would need to cash out no less than $1 million.
Given all these facts, we believe that Mathnasium is one of the best education franchises to invest in.
Mathnasium Franchise Payback Period
To find out the Mathnasium franchise payback period, let us do some calculations considering the average investment, revenue, profit percentage, etc.
| AVERAGE INVESTMENT | $126,655 |
| AVERAGE REVENUE PER OWNER | $270,000 |
| AVERAGE PROFIT PERCENTAGE | 15% |
| AVERAGE PROFIT PER YEAR | $40,500 |
| AVERAGE PAYBACK PERIOD | 3 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= $126,655/$40,500 = 3.1 = approximately 3 years based on median
The average investment for the Mathnasium franchise is $126,655 and the average revenue per owner is $270,000.
With an average profit percentage of 15%, the average profit per year is $40,500.
This means that the average payback period for the Mathnasium franchise is approximately 3 years, as the total investment of $126,655 would be recovered within this period.
What Is Mathnasium Best Known For?
Maths is one of the subjects that millions of students struggle with, and Mathnasium was built to tackle this problem.
Today, Mathnasium is known for its easy-to-understand concept of teaching maths to kids.
The idea on which Mathnasium was built was to make maths a friendly subject for kids so that they end up falling in love with it.
For this, the founders curated a tutoring concept that would make sense to the kids.
Because of their unique concept and maths teaching method, Mathnasium has grown to over 1,100 locations worldwide today.
((https://mathnasiumfranchise.com/why-open-a-mathnasium-franchise/))
Is Mathnasium Franchise Profitable?
So far, everything looks good! So now, you might be wondering if the Mathnasium franchise is even profitable. To answer in short- Yes, but not so much.
As we saw in the article above, Mathnasium franchise owner makes only $40,500–$54,000 annually. Since Mathnasium is a very low-cost franchise opportunity expecting high profits from it is not viable.
Considering what you are getting back for a lesser investment, we believe Mathnasium is a good franchise to invest in.
If the profit range of $40,500–$54,000 annually seems good to you as well, considering the investment of $112,860 – $148,655, then go for buying this franchise.
Mathnasium Franchise Earning Potential
According to statistics, the global tutoring industry is expected to reach $279 billion by 2027.
So it is obvious that if the tutoring industry grows, then education-related franchises, including Mathnasium, will also see positive growth in revenue and profit.
As of now, there is only a decent amount of profit that you can make from Mathnasium franchise, but if the global tutoring industry grows as expected, then you will be able to make more profit from Mathnasium franchise.
Wrap Up
So now it all boils downs to whether or not you should invest in the Mathnasium franchise.
Well, as we saw, this is one of those franchises that require investment on the lower end of the franchise spectrum and is considered as “best-bet” by many industry experts.
The qualification and approval process is quite flexible, and although this franchise can’t make you rich, it is profitable on any given day.
If we talk about Mathnasium’s popularity, then there is no flaw even there.
Overall, we think Mathnasium is a good franchise opportunity, and if you are okay with making $40,500–$54,000 on average, then go for this business opportunity.
Frequently Asked Question
How much does Mathnasium charge as franchise royalty fees?
Mathnasium charges a base fee of $500 per month, along with 10% of monthly gross sales revenue. Along with this, they charge $250 plus 2% of gross sales as advertisement fees. Both the royalty and marketing fee of Mathnasium is higher than the industry average of 5% and 3%, respectively.
What is the total cost to open a Mathnasium franchise?
You are required to put in between $112,860 – $148,655 to open a Mathnasium franchise. This amount is inclusive of franchise fees, months of working capital, marketing campaigns, and other one-time expense.
Does Mathnasium offers any discount on its franchise?
Mathnasium does offer discounts to qualifying candidates. However, they have not shared much information about this. You can get in touch with Mathnasium to learn about the discount they offer on their franchise.
Do I need to be a math expert in order to own Mathnasium franchise?
As per the company’s website, you do not need to be a Math expert in order to open Mathnasium, and they hire people from all kinds of educational backgrounds, be it corporate executives, engineers, etc. They only need you to have passion for the community, and rest they will give you the required training.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.