Buying a Kumon Franchise
Top 20 Most Popular Franchises: Kumon
Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 2,600 franchises and knows the key facts and data that signal a successful franchiseA franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?... More system. Upon extensive review using a number of internet research tools, our team was able to compile a short list of the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: Kumon, as well as the requirements that encompass its franchise application process.
About Kumon
The Kumon method was developed more than 60 years ago in Japan by high school math teacher, Toru Kumon. At the time, Kumon’s son was struggling with second-grade arithmetic. After realizing that a strong foundation in the basics – addition, subtraction, multiplication and division – was essential for higher-level math Kumon created a series of math worksheets for his son to work on after school, that allowed his son to begin solving differential equations and integral calculus problems by the sixth grade. After other parents began taking notice in Kumon’s unique step-by-step self-learning method, so did the interestA payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. In Vetted Biz, it is typically the additional rate of a loan a business buyer would pay off over time to borrow in purchasing a business.... to franchise the concept. Today, Kumon currently has over 1500 franchises helping children across the US improve on their reading and math skills. Kumon is currently headquartered in Ridgefield Park, New Jersey and is run by president and director Minoru Tanabe, who has been with Kumon since 1991.
How Much Does a Kumon Franchise Cost?
The first factor to consider when interested in investing in a Kumon franchise are the financial requirements accompanying this investment opportunity. The total investment amount to establish a Kumon franchise ranges from $73,373 to $154,825 including the company’s franchise fee of $1,000. Once the learning center has been built and operations begin, franchisees are then expected to pay the parent company a royalty fee of $34-$38 per student every month, and invest at least $4,000 on marketing during its first three months of which Kumon will cover 50% of the costs. The franchisor is particularly looking for candidates who are residents or citizens of the United States, have a bachelor’s degree, are proficient in math and reading and are willing to commit themselves fulltime to the day-to-day operations of the individual center. Additionally, the minimum net worthValue of all the non-financial and financial assets of a business buyer. There is usually a minimum net worth requirement to qualify as a franchisee and for bank financing.... required to own a Kumon franchise is $150,000 and the applicant must have liquid assets totaling at least $70,000.
Kumon in Numbers
When evaluating a Kumon franchise’s potential for growth ones does not need to go beyond the Education Industry numbers to better understand the prospect for success of the opportunity at hand. The education industry as a whole currently makes up over 7.3% of the U.S.’s GDP out of which $7 billion is invested solely towards tutoring programs such as Kumon. Additionally, Kumon was ranked 12 in Entrepreneur’s 2019 Franchise 500, and the number 1 tutoring franchise due to its outstanding performance in areas including unit growth, financial strength and stability as well as brand power. Looking at the franchise’s internal performance, it was found that in 2018 the average number of enrollments after 12 reporting months for centers opened in 2018 was 81, out of which 40% of these franchises found themselves at or above this number. Moving forward, Kumon is looking to establish new units across the country, and particularly in locations where the franchisee already has an establishedThe year a Business for Sale was established. If the business has been running for a minimum of ten years, Vetted Biz will qualify the business for sale as a “Well-Established Business.”... tie with the community.
Summary
Investing in a Kumon franchise is an interesting opportunity, especially for individuals looking to invest in the Education industry. The prospects for growth and success within the industry and the Kumon franchise itself, are extensive and a number of markets continue to be available as Kumon learning centers haven’t saturated their presence across the country yet. If you are an individual with a bachelor’s degree, passion for teaching and are willing to invest an amount ranging from $73,373 to $154,825, Kumon is the right franchise for you!
