The standard Education franchise in the U.S. costs $123,000 for a single franchise. The Education industry is one of the fastest growing sectors in the U.S. The industry itself is valued at over $2 trillion with over 1.4 million businesses. A standard education franchise should expect between $120,000 and $180,000 in sales the first year alone. By year three sales should be between $180,000 and $302,000. Be sure to check out all of these metrics on the Vetted Biz Education Profile.
Mathnasium charges a premium compared to other education businesses. There is a base of $500 paid for its royalty fee as well as 10% of monthly gross revenue. Similarly, the marketing fee is $250 plus 2% of gross sales. The industry norm is 5% for royalty and 3% for marketing.
A major competitor to Mathnasium is the Goddard School, which charges a 7% royalty and 2% marketing fee. The median Goddard School costs about $954,000 and earned $1,699,054. The median Goddard School takes about 5 years to recoup the investment from the time a franchise development contract is signed. Moreover, the median franchise sells for over $1.5 million once again making it a desirable competitor to Mathnasium Franchise.