Kumon Franchise Cost, Profit & Failure Rate 2024

Do you want a business with a learning or educational background? The Kumon franchise is one of the options you can consider.

Kumon is the largest after-school learning program in the world. It offers a special way to help children do well in school.

It is one of the top 10 education franchises you should think about owning.

Kumon lets you make a difference in your community and run your own business. With over 27,000 locations around the world and more than 4 million students, Kumon has a history of doing well.

Keep reading to learn about the cost, fees, and what you need to start a Kumon Franchise.

Kumon Franchise

About The Kumon

Kumon is the leading after-school program for math and reading for kids from kindergarten to 12th grade.

Kumon’s goal is to help all children become better learners. They focus on making kids do well in school and in life, and they hope to improve education everywhere.


Kumon History

Kumon started because Toru Kumon, the founder, wanted to help his son with math. Since he was a high school teacher, he made math worksheets for his son.

After some time, he found a way to help his son and started helping others too. He opened an office in 1958, and many students began to join.

The business was first called Osaka Institute of Mathematics but was renamed in 1983.


What Are The Main Responsibilities Of A Franchisee?

A study center is open for classes two to six days a week. You will need to be ready to change your schedule to fit your business needs.

Your main job will be to help your students do their best. But you will also handle everything in the business, from talking to parents to running the daily tasks at your center. Being a Kumon Instructor is rewarding but takes hard work.


Kumon Franchise Model

ParameterValue
Initial Investment for franchise$64,400 to $160,975
Net-worth Requirement$150,000
License Fee$5,000
Land Area1,000 square feet
Total Outlets1,500

Kumon Franchise Revenue & Profit

The estimated average franchise revenue for 2021 was $260,629. If we assume a profit margin of 29% as per the industry, then we can calculate that Kumon franchise owner make $39,094 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%260629.00
Rent10.63%(27691.83)
Insurance5.31%(13845.92)
Salaries21.25%(55383.66)
Franchise Royalty Fees5.31%(13845.92)
Utilities2.13%(5538.37)
Cost of Goods Sold (COGS)26.56%(69229.58)
Labor (Variable)13.81%(35999.38)
Total (Expenses)85.00%(221534.65)
Net Profit15.00%39094.35

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.


Kumon Payback Period

With a midpoint investment of $112,687 and an estimated 15% profit on the average net sales of $260,629 from 2021, the yearly profit would be $39,094.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $112,687/$39,094= 2.8 years

As you can see it would take around 3-4 years to pay back the initial investment for a Kumon franchise based on these figures. This time could be more or less depending on things like sales, costs, and how the business is running, etc.


Kumon Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20181,4901,507+17
20191,5071,547+40
20201,5471,568+21

For the Franchised outlets:

  • In 2018, the growth rate was (17)/1,490×100≈1.14%
  • In 2019, the growth rate was (40)/1,507×100≈2.65%
  • In 2020, the growth rate was (21)/1,547×100≈1.35%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20182623-3
20192321-2
20202127+6

For the Company-Owned outlets:

  • In 2018, the failure rate was (3)/26×100≈11.5%
  • In 2019, the failure rate was (2)/23×100≈8.6%
  • In 2020, the growth rate was (6)/21×100≈28.5%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20181,5161,530+14
20191,5301,568+38
20201,5681,595+27

For Total Outlets:

  • In 2018, the growth rate was (14)/1,516×100≈0.92%
  • In 2019, the growth rate was (38)/1,530×100≈2.48%
  • In 2020, the growth rate was (27)/1,568×100≈1.72%

The number of Kumon franchises grew between 2018-2020, so the failure rate of Kumon franchises is very low, lying between the range of 1.14% to 1.35%.

However, we saw a decrease in the number of company-owned outlets, so the failure rate of Kumon company-owned outlets is between 11.5% and 8.6%. However, the company experienced growth, showing a growth rate of 28.5% in 2020.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Kumon franchise has expanded in the years 2018-2020, showing a total growth rate between 0.92% and 1.72%.


Kumon Franchise Required Qualifications

You need a strong wish to work with children and believe in education.

Math and English skills are required, along with a college degree. You also need to be good at understanding, talking to people, and giving good service.


Kumon Franchise Support And Training

Kumon is proud of how friendly and supportive they are. All new owners get full training and a lot of help when they start. They want to make sure that everyone feels welcome and gets the help they need.

Aspiring entrepreneurs in the education franchise realm have choices like Mathnasium, Code Ninjas Franchise, Kiddie Academy, Kidzee Franchise and Legal Academy Franchise to consider.


Kumon Comparison

CompanyKumon Mathnasium
Founded In19582002
Initial Investment$64,400 to $160,9750 $112,750 – $149,110
Franchise-Fee$5,000$49,000
Total Outlet15001100
Annual Revenue$18 Million$21.1 Million

Frequently Asked Questions 

Is it possible for me to buy an existing Kumon center?

Yes. Each year, several existing Kumon centers become offered for purchase.

Is Kumon a franchise?

Kumon is a wholly owned subsidiary of Kumon Institute of Education Company that offers franchises.

How much does a Kumon franchise cost?

Who is the Owner Of Kumon?

Kumon was founded by Toru Kumon, a Japanese math teacher, in 1954. He developed individualized learning plans for each of his students and soon realized the effectiveness of this approach to education.

The company is now owned by Masayoshi Son, founder and CEO of SoftBank Group Corp., who purchased it from Benesse Corporation in 2015. Under Son’s leadership, Kumon has expanded its global reach to serve over 4 million students in 53 countries and regions worldwide.

How many locations does Kumon franchise has?

There are more than 2,000 Kumon franchise locations in North America.

Where is Kumon headquartered?

Kumon Institute Education Co. is headquartered in Moriguchi City, Osaka, Japan.

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