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Mathnasium Franchise Cost & Fees

Date of Incorporation: 2002
Franchising Since: 2003
Headquarters: Los Angeles, California

Business Description: Mathnasium offers and awards franchises throughout the United States to independent operators for the operation of learning centers that provide math instruction using the Mathnasium education method at locations we have consented to. Mathnasium centers are open to the public at least five times a week during after-school hours for at least four hours per day. Children typically attend Mathnasium centers twice a week for approximately 60 minutes per session. Some children attend more than twice a week or for more than 60 minutes per session. The Mathnasium Method uses diagnostics, instruction, guided practice and manipulatives. The Mathnasium system includes worksheets for children between 4 and 17 years old.

Franchise Offer: A Mathnasium franchisee is granted the right to operate a learning center that provides math instruction using the Mathnasium system of learning.

Financial Assistance: The franchisor does not offer direct or indirect financing for the franchisee’s first center. The franchisor may finance initial fees for a franchisee’s second or subsequent center, if he or she qualifies.

Training and Assistance: The initial franchise training program typically consists of approximately 10 hours of online training, six days of live training instruction in a training facility designated by Mathnasium in Los Angeles, California, online training, assignments, and webinars completed on the franchisee’s own time, and four days of live training at a designated Mathnasium Learning Center. Mathnasium may also provide franchisees and their personnel with periodic ongoing or supplemental training, as specified in the Manuals. The franchisee must participate in ongoing and supplemental training as prescribed by Mathnasium during the term of the Franchise Agreement. Center Directors hired or promoted after the Center is already operating must attend either the initial training program or other training program designated by Mathnasium, as specified in the Manuals. Instructors the franchisee hires for the Center are also required to complete training courses, as specified in the Manuals. If Mathnasium hold an annual convention for franchisees, the franchisee must attend and pay the annual convention fee.

Territory: The franchisee will receive an exclusive territory subject to exceptions discussed in the FDD. The franchisee is granted the right to operate one center in the territory. Based upon the demographic data available, the franchisor will assign the franchisee a territory that it believes to contain at least 2,500 children between the ages of five and 19 years at the time the franchisee executes the Franchise Agreement. Mathnasium and its affiliates will not open another center within the territory nor grant franchises to other to operate a learning center within the territory, subject to its reservation of rights.

Term of Agreement and Renewal: The initial franchise term is for five years. If the franchisee is in good standing, he or she can execute a successor Franchise Agreement for an additional five-year term.

Obligations and Restrictions: The franchisee or a principal is required to personally participate in the management and direct operation of the franchise on a full-time basis regardless of whether there is a designated Center Director employee. It is the intention of Mathnasium to select only those franchisees whose principals plan to actively participate in the direct operation and daily affairs of the franchise. Additionally, the franchisee must act as or employ a Center Director for the center. The name of the Center Director must be disclosed to us and should the Center Director change, Mathnasium must be notified in writing. The Center Director must successfully complete the initial training program and the apprenticeship training program. The Center Director must devote his or her entire time during normal retail business hours to the management, operation and development of the franchise business at the center. A live person must answer the Center telephones during the minimum hours of 10 am to 3 pm Monday through Friday. Franchisees may offer only Mathnasium programs, and only in accordance with the system. Mathnasium must pre-approve the use of any additional services, programs or products that franchisees develop for their centers.

Estimated Number of Units: 675

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee
$40,000 for first franchise $26,500 for additional franchise $40,000 for first franchise $26,500 for additional franchise
Expenses While Training $1,500 $2,500
Rent (and Security Deposit, if Required) $6,000 $12,000
Base Royalty Fee $0 $500
Technology Fee $0 $110
Paint, Carpet and Tenant Improvements $2,500 $10,000
Furniture, Signs, Equipment and Supplies $10,000 $15,000
Insurance $2,000 $3,500
Business License, Name Registration $250 $1,000
Professional Services (Legal and/or Accounting) $1,500 $2,000
Phone and Utilities $500 $1,000
Video Surveillance and Related Equipment $1,500 $5,000
Early Stage Advertising $10,000 $15,000
Additional Funds (4 Months) $15,000 $30,000
ESTIMATED TOTAL (First Center) $90,750 $137,610
ESTIMATED TOTAL (For each Center after the First) $77,250 $124,110
Other Fees
Type of Fee Amount
Monthly Royalty Initially, 10% of the monthly gross receipts from all sources as a result of operating the center, plus a base royalty fee of $500 per month (payable on the first center only). Beginning in the 24th month of operation of the center, the base royalty fee plus the greater of (i) the 10% monthly royalty or (ii) $1,400
Monthly Marketing Fees $250 plus 2% of monthly gross receipts from all sources as a result of operating the center.
Technology License Fee Currently $110 per month, subject to increase.
Annual Convention Fee Currently $250 per franchisee if the franchisee stays in the hotel designated for the conference.
Administrative Fee for Late Payment $100 every 2 weeks until payment is made.
Administrative Fee for Late Submission of Reports $100 every two weeks until reports submitted.
Non-Compliance Fine $300 per month for each non-complying incident.
Returned Check Service Charge $60 per check returned by bank for non-sufficient funds.
Shipping costs Actual cost of shipping only.
Payments for "Chargeable Items" purchased from Mathnasium Prices determined by Mathnasium.
Transfer Fee $6,000
Training Fee $1,500
Initial Training Tuition for Additional Trainees $750 per day per person.
Initial training program for additional sessions $1,500 for up to 2 people.
Additional Marketing Assessment Pro rata amount to cover special advertising program.
Local or regional cooperative advertising As determined by cooperative. All money spent on cooperative advertising will be a credit against the local advertising requirement.
Reimbursement of Taxes Amount of taxes assessed against Mathnasium due to the operation of the franchisee’s center.

The above information has been taken from the FDD of Mathnasium. Year of FDD: 2016

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