Mathnasium Franchise Owner Salary, Profit & Failure Rate 2024

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!

How Much Does A Mathnasium Franchise Owner Make

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 EXPENDITUREAMOUNT
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

Cost Or FeesAmount
Mathnasium Franchise Fee$49,000
Mathnasium Franchise Cost$112,860 – $148,655
Royalty Fee10% + $500/month
Advertising Fee2% + $250/month
Term of Agreement5 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 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.

This is how we calculated this figure:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%270000.00
Rent10.00%(27000.00)
Insurance5.00%(13500.00)
Salaries20.00%(54000.00)
Franchise Royalty Fees5.00%(13500.00)
Utilities2.00%(5400.00)
Cost of Goods Sold (COGS)25.00%(67500.00)
Labor (Variable)13.00%(35100.00)
Total (Expenses)80.00%(216000.00)
Net Profit20.00%54000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Mathnasium Franchise Failure Rate

To figure out the Mathnasium franchise failure rate, let us have a look at the number of Mathnasium centers that opened and closed between 2019-2021 below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019860935+75
2020935927-8
2021927948+21

For the Franchised outlets:

  • In 2019, the growth rate was (75)/860×100≈8.72%
  • In 2020, the failure rate was (8)/935×100≈0.86%
  • In 2021, the growth rate was (21)/927×100≈2.26%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019137-6
2020770
202173-4

For the Company-Owned outlets:

  • In 2019, the failure rate was (6)/13×100≈46.15%
  • In 2020, the failure rate was (0)/7×100≈0.00%
  • In 2021, the failure rate was (4)/7×100≈57.14%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019873942+69
2020942934-8
2021934951+17

For Total outlets:

  • In 2019, the growth rate was (69)/873×100≈7.90%
  • In 2020, the failure rate was (8)/942×100≈0.85%
  • In 2021, the growth rate was (17)/934×100≈1.82%

According to the above-mentioned data, we can see that the franchised outlets for Mathnasium grew in 2019 and 2021, showing a growth rate between 8.72% and 2.26%. However, the company also experince a decline in 2020, showing a failure rate of 0.86%.

On the other hand, for company-owned outlets, the failure rate of Mathnasium was lying in the range between 46.15% and 57.14% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Mathnasium franchise has expanded in the years 2019-2021 showing a total growth rate between 7.90% and 1.82%. But in 2020, the number of outlets declined, showing a failure rate of 1.82%.


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 PERCENTAGE20%
AVERAGE PROFIT PER YEAR$54,000
AVERAGE PAYBACK PERIOD3 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= $126,655/$54000 = 2.3 = 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 20%, the average profit per year is $54,000.

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?

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.

Who owns Mathnasium?

Mathnasium has been acquired by a private equity firm, Roark Capital Group.

Who founded Mathnasium?

Mathnasium is founded in the year 2002 by Larry Martinek, David Ullendorff, and Peter Markovitz. The company began franchising in 2003.

How many location does Mathnasium has?

Mathnasium has over 1,000 centers worldwide, including Australia, the United Arab Emirates, Bahrain, the United Kingdom, and many other countries.

Where is Mathnasium headquartered?

The headquarters of Mathnasium is located in LOS ANGELES, California, United States.

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