How Much Can I Make as a Mathnasium Franchisee?

Mathnasium Learning Centers is a math-only tutoring franchise that provides individualized instruction in a fun and engaging learning environment to help kids catch up and get ahead in math. With a history of successful business operating systems, Mathnasium works closely with franchisees to ensure they have the support, tools and resources they need to thrive, and a large part of that equation is offering an attractive investment model.

According to Mathnasium’s 2023 FDD, the total investment necessary to begin operation of a Mathnasium franchise ranges from $112,891 to $149,346, or $90,891 to $129,846 for a second location. Those costs include:

• Initial Franchise Fee: $49,000 for your first franchise; $26,500 for an additional franchise
• Expenses While Training: $2,500 to $3,000
• Base Royalty Fee: $0 to $3,000
• Technology Fee: $141 to $846
• Rent (1st and Last Month’s Rent): $6,000 to $14,000
• Paint, Carpet, and Tenant Improvements: $5,500 to $13,500
• Furniture, Signs, Equipment, and Supplies: $10,000 to $17,000
• Insurance: $1,200 to $1,500 annually
• Business License, Name Registration: $250 to $1,000
• Professional Services (Legal and/or Accounting): $1,300 to $2,000
• Phone and Utilities: $500 to $1,000
• Video Surveillance and Related Equipment: $500 to $2,500
• Pre-Open Advertising: $4,000
• Additional Funds (4 Months): $32,000 to $40,000

But, the question remains: How much money can franchisees expect to see as a return on that investment?

The Mathnasium 2023 FDD and Item 19 offer the following snapshot of the financial performance of Mathnasium Learning Centers over the past three years:

Total Number of Mathnasium Centers Operating at Year End:

• 2022: 952
• 2021: 948
• 2020: 927

Average Gross Receipts:

• 2022: $311,473
• 2021: $271,794
• 2020: $225,261

Range of Gross Receipts (High to Low):

• 2022: $1,250,397 - $22,604
• 2021: $1,061,821 - $44,238
• 2020: $1,085,199 - $35,764

Growth of Average Gross Receipts from Prior Year:

• 2022: 13.8%
• 2021: 20.7%
• 2020: (19.6%)

Average Gross Receipts of Top 25%:

• 2022: $546,418
• 2021: $479,545
• 2020: $411,616

Average Gross Receipts of Mid-Upper 25%:

• 2022: $325,766
• 2021: $281,942
• 2020: $228,292

Average Gross Receipts of Mid-Lower 25%:

• 2022: $230,759
• 2021: $203,065
• 2020: $160,266

Average Gross Receipts of Bottom 25%:

• 2022: $143,015
• 2021: $123,322
• 2020: $100,870

Operating Profit for Average Center:

• $91,706

So, how do Mathnasium franchisees make money?

The private tutoring market is expected to be worth $290.8 billion by the year 2030. Especially after COVID-related learning disruptions, parents are constantly on the hunt for the resource that will best support their child in reaching academic goals.

Mathnasium has effectively established itself in the supplemental education sector by focusing on math and infusing learning with a fun element. This franchise provides face-to-face, personalized instruction that is available in-center, online or via a hybrid model, making it accessible to students at various levels of math proficiency. This singular focus on math, combined with an engaging and confidence-boosting teaching style, gives Mathnasium franchisees a unique edge in the educational franchise market.

“Franchisees who invest with Mathnasium are not only breaking into a high-demand market, but they’re also gaining access to a powerful support network that will stand behind them as they grow,” said Kevin Shen, Chief Development Officer. “There’s nothing like us in the space, meaning franchisees have a competitive edge in the markets they enter, and we’re constantly working to make their lives easier and free up time for them to focus on development rather than everyday tasks.”

Leveraging the expertise of seasoned franchise professionals, Mathnasium offers proven guidelines for efficiently running a business. This approach allows franchisees to devote more time to business growth rather than day-to-day tasks.

Mathnasium's effectiveness is evident in its consistent year-over-year growth in average unit volume, including a substantial increase last year. Beyond the financial benefits, franchisees experience a deep sense of fulfillment by making a positive impact in the lives of students and their families, helping them navigate academic challenges and enjoy learning.

“We’re very passionate about furthering education, but our model offers so much more,” said Shen. “For investors, this is a great way to get a better work-life balance while doing something meaningful. We’re open to talking to anyone who wants to start their own business and is passionate about connecting with their community and helping students gain confidence through math.”

Aiming to surpass 1,500 locations by 2028, Mathnasium is expanding rapidly, not just in the U.S., but also in key international markets like India and the Philippines. 

To find out more information on costs to buy this franchise, please visit 1851franchise.com/mathnasium/info