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How Much Does It Cost To Open a Kumon Franchise?

Opening one of the world’s most established education franchises might be more attainable than you think, and it includes free and reimbursable options.

If you have a passion for education and are considering franchising in the field, Kumon might be the brand for you. The well-established education franchise has around 25,000 after-school Centers in 58 countries and provides a structured program designed to help students excel academically. 

As with any business venture, understanding the costs involved is crucial. Here's a comprehensive overview of the expenses associated with opening a Kumon franchise.

Initial Investment and Incentives

One of the key highlights of choosing a Kumon franchise is the low initial investment and the attractive incentives offered to new franchisees. Kumon's franchise fee of just $2,000 is relatively low compared to other opportunities, making it an accessible option for aspiring business owners.

The total investment range to open a Kuman is between $67,428 and $145,640, and varies based on factors such as location and build-out needs. Some areas may require even lower investments, so it's advisable to consult with a Kumon franchise specialist for specific details. 

Initial investments include: 

  • Training Kit: $1,000
    • This kit is essential for the Instructor Development Program (IDP), and its cost is applied to the franchise fee upon successful completion. Kumon does not charge for the IDP, and the training kit cost is applied to the franchise fee upon successful completion.
  • FBI Fingerprint Check: $18-$60
  • Materials Purchase: $2,000
    • After the initial materials purchase, ongoing worksheet orders only incur shipping costs.
  • Recommended Reading List: $2,600
  • Laptop for Kumon Center: $500-$2,000
  • Architect Design: $10,000
  • Leasehold Improvements: $30,000-$60,000
  • Security Deposit (If Required): $0-$15,000
  • Business License and Name Registration: $200
  • Professional Fees: $1,000-$3,000

Notably, Kumon provides substantial incentives of up to $37,100, including reimbursements and free items, to help new franchisees offset initial costs. These include: 

  • Rent Reimbursement: Up to $12,000
  • Kumon reimburses 50% of rent for the first 12 months, up to $1,000 per month.
  • Free Primary Signage: Valued at $4,800-$7,000
  • Free Furniture and Fixtures: Nearly $10,000
  • Reimbursement for Paint, Carpet and Window Coverings: Up to $5,500
  • New Center Marketing: $2,000 for Free

Prospective franchisees are advised to have around $13,500 to $18,000 in additional funds for operating expenses during the first three months.

Ongoing Expenses

Franchisees should also be aware of several ongoing expenses throughout ownership, including: 

  • Monthly Rent, Before Factoring in the 50% Subsidy of up to $1,000 for the First 12 Months: $5,000
  • Quarterly Payroll For Assistants: $8,820
  • Recommended Marketing for Your Center, Yearly: $2,400
  • Kumon Lead Management Telephone System, Monthly: $40
  • Liability Insurance: $480

Opening a Kumon franchise presents an affordable opportunity with a well-established brand in the education sector. The franchise fee, initial investment range and incentives make it an attractive option for franchisees who are passionate about fostering academic excellence in their communities. As with any business venture, careful consideration and consultation with a Kumon Franchise Specialist are essential to ensure a successful and financially sound investment.