Kumon
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As a leader in the after-school enrichment programs industry, Kumon is one of the largest and most established franchises in the world. With nearly 310,000 students enrolled in over 1,500 centers in North America, Kumon tailors highly effective after-school math and reading programs specializing in individualized, self-paced learning. Services cater to both students who need extra help and advanced students who need a challenge. The individualized programs provide students a richer and more successful learning experience, fostering the confidence that is necessary to accomplish more on their own.
Kumon is looking for achievement-oriented franchisees who love to work with children. A background in education is not necessary, as Kumon provides all the training and support you will need in order to run a successful business and help children with their goals in education.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
1,281 |
1,293 |
1,589 |
| | % Change | -- |
0.9% |
22.9% |
| | Company-Owned |
23 |
28 |
30 |
| | % Change | -- |
21.7% |
7.1% |
| | Total |
1,304 |
1,321 |
1,619 |
| | % Change | -- |
1.3% |
22.6% |
| | Franchised as % of Total |
98.2% |
97.9% |
98.2% |
Investment Required
The fee for a Kumon franchise is $1,000.
Kumon provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Training Agreement Deposit Fee | $500 | $800 |
| |
Initial Franchise Fee | $1,000 | $1,000 |
| |
Expenses While Training |
$3,945 |
$5,460 |
| | Initial Purchase of Materials | $1,000 | $1,000 |
| | Architect Design | $0 |
$9,500 |
| | Leasehold Improvements |
$30,000 |
$60,000 |
| | Security Deposit (if required) | $0 | $4,500 |
| | Rent | $1,500 | $4,500 |
| | Furniture, Signage, Personal, Equipment and Supplies |
$10,000 |
$20,000 |
| | Notebook Computer |
$800 |
$1,500 |
| | Professional Fees | $1,000 | $3,000 |
| | Liability Insurance | $400 | $400 |
| | Business License, Name Registration | $100 | $200 |
| | Separate Business Phone Line and Answering System |
$200 |
$400 |
| |
Grand Opening Advertising | $500 | $2,000 |
| | Junior Kumon Kit | $800 |
$1,000 |
| | Junior Kumon Library of Books |
$900 |
$1,500 |
| | Recommended Reading List |
$0 | $1,700 |
| | Fingerprinting, Criminal Background Check | $18 | $60 |
| | Payroll Cost for Assistants | $3,600 | $3,600 |
| |
Additional Funds (3 Months) | $12,000 |
$24,000 |
| |
Total Initial Investment |
$67,763 |
$145,320 |
Ongoing Expenses
Kumon franchisees pay an initial enrollment fee of $15 for each newly enrolled student, and monthly royalty fees equal to $36 times the number of full-paying students enrolled and $18 times the number of partially exempt and/or prorated tuition students during the Temporary License Period. After completion of the Temporary License Period, franchisees pay monthly royalty fees equal to $32 times the number of full-paying students enrolled and $16 times the number of partially exempt and/or prorated tuition students. Kumon franchisees also pay insurance fees of $4 per math student per year.
What You Get—Training and Support
Before awarding a franchise, Kumon requires applicants to complete Start-Up Training, which consists of training in a Kumon center, online training, and study of Kumon curriculum and worksheets. Once this is completed, the franchisee will attend a comprehensive eight-day program conducted in Chicago, IL. The program, which is divided into two four-day cycles, covers the Kumon curriculum, as well as business strategies for owning and operating a Kumon franchise center. Kumon offers continuous support to franchisees both in program administration and center growth and development by providing follow-up training and monthly instructor meetings at branch offices. Kumon reviews student materials to keep learning methods updated and efficient. Kumon marketing efforts have become increasingly aggressive to support current franchisees in their efforts to reach as many potential students as possible.
Territory
Kumon does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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