Kumon Franchise Costs, Fees & FDD

Year Business Began: 1958

Franchising Since: 1958

U.S. Headquarters: Ridgefield Park, New Jersey

Country of Origin: Japan

Estimated Number of Units: 25,420

Franchise Description: The franchisor, Kumon North America, Inc., is a wholly owned subsidiary of Kumon Institute of Education Company, Ltd., a Japanese corporation. Franchisees operate an after-school center that provides math and reading programs using the Kumon Method of learning. Children are given the opportunity to attend Kumon centers twice each week throughout the year for approximately 20-30 minutes per subject and complete daily assignments at home on non-center days. There are 20 math levels and 27 reading levels covering material ranging from pre-school to high school level.
Training Overview: The Instructor Development Program consists of two semesters with two courses in the first semester and two courses in the second semester. Completion of the first semester of the program includes in-center training at an existing Kumon center designated by the franchisor, on-line training, homework assignments and study of the franchisor’s curriculum and worksheets. Franchisees must complete the first semester of Kumon’s Instructor Development Program to the franchisor’s satisfaction in order to be offered a franchise. If franchisees successfully complete the first semester of the Instructor Development Program and are awarded a franchise, they must complete the second semester and attend two additional online courses. The franchisor currently estimates that it will take approximately four months to complete the first semester of the Instructor Development Program. After completion of the temporary license period, franchisees must complete ongoing training, which continues for the term of the franchise. Ongoing training includes instructor achievement testing, attendance at monthly instructor meetings and/or online training, other professional development activities and completion of additional classroom training, in accordance with the training schedule set forth in the operations manual.

Territory Granted: Franchisees will not receive an exclusive territory within the Kumon franchise organization for the operation of the center(s). Franchisees may face competition from other franchisees, from centers owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor. Franchisees may operate their center only at the location approved by Kumon and specified in their Franchise Agreement.

Obligations and Restrictions: If franchisees are individuals, they must instruct the students personally. Franchisees must be at the center during all student sessions except in extraordinary circumstances of a personal nature. Franchisees must devote full-time to the operation of the Kumon franchise throughout the franchise relationship. If franchisees wish to form a corporation or limited liability company to operate the center, they must satisfy the corporation/LLC requirements stated in the Training Agreement and Franchise Agreement. The franchisor does not grant franchises to partnerships. Franchisees must ensure that their assistants are competent to perform the tasks assigned to them, are of good character, and are otherwise qualified to work with children. Franchisees may not permit activities at their center other than those activities that the franchisor, in its discretion, deems related to the operation of a Kumon Math and Reading center. Franchisees may offer only the Kumon math and reading programs, and only in accordance with the Kumon Method, using only Kumon Materials and the Operations Manual, Instruction Manual, Instruction Principles Series, Digital Kumon Instruction Handbook, and other instructional materials in the center.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing and have met the requirements for renewal, they can renew the Franchise Agreement for additional five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any promissory note, lease or other obligation franchisees may make to others.

Estimated Initial Investment

Type of Fee	Low	High
Training Agreement Deposit Fee	$1,000	$1,000
Initial Franchise Fee	$2,000 less, the $1,000 Deposit Fee if franchisee is obtaining their first Kumon Center
Initial Purchase of Materials	$2,000	$2,000
Architect Design	$0	$10,000
Leasehold Improvements	$30,000	$60,000
Security Deposit, if required	$0	$26,500
Rent	$3,000	$7,000
Furniture, Equipment, Primary Sign & Supplies	$5,000	$15,000
Notebook Computer at Kumon Center	$500	$2,000
Professional Fees	$1,000	$3,000
Liability Insurance	$480	$580
Business License, Name Registration	$100	$200
Kumon Lead Management System Suite	$200	$550
Recommended Reading List	$2,600	$2,600
Fingerprinting, Criminal Background Check	$18	$60
Payroll Cost for Assistants (3 Months)	$10,725	$12,870
Additional Funds (3 Months)	$15,500	$21,000
ESTIMATED TOTAL	$73,123	$165,360

 
Other Fees

Type of Fee	Amount
Royalty	Initial Enrollment Royalty Fee: For each reporting month, $30 times the number of newly enrolled students. Monthly Royalty During Temporary License Period (TLP): $40.50 times the number of full-payment students enrolled, and $20.25 times the number of partially exempt and/or prorated tuition students for each subject-franchise. On January 1, 2026, these fees will increase to $42.75 and $21.38, respectively. Monthly Royalty after completing the TLP: $36 times the number of full-paying students enrolled, and $18 times the number of partially exempt and/or prorated tuition students for each subject-franchise. On January 1, 2026, these fees will increase to $38 and $19, respectively. Franchisees must allow the franchisor to make monthly electronic debits to account equal to the amount owed.
Administrative Fee for Late Payment	1.5% on the overdue amount each month or $75, whichever is higher.
Late or Inaccurate Report Fee	$200 per month for the first month the franchisee is late; $500 for the second month the franchisee is late; $1,000 the third month the franchisee is late with increments of $1,000 per month thereafter.
Insufficient Funds	$25 per EFT attempt that has insufficient funds to cover the amount owed.
Insurance	$4.80 per math student per year. On June 1, 2025, this fee will increase to $5.80.
Indemnification	Amount incurred by the franchisor.
Shipping Costs for Materials	Charged on per-order basis.
Relocation Fee	$2,000
Payments for “Chargeable Items” Purchased from Kumon	As stated on invoice.
Liquidated Damages	Three times the average monthly royalty in the three months immediately prior to the franchisee’s last day of operating the center.
Temporary Transfer to the Franchisor	10% of the average tuition charged by the five Kumon centers that are closest to the center, multiplied by the number of students enrolled at the center for so long as Kumon has assumed operation of the center(s) and reimbursement of any out-of-pocket costs that it incurs.
New Center Marketing Fee	$300 per month.
Advertising Contribution	At least the minimum amount set forth in the Operations Manual.
Audit Fees and Expenses	The reasonable amount of fees and expenses incurred by the franchisor for the audit and/or examination, plus the amount of any unpaid royalties and reimbursement of any instructor awards or subsidies given to the franchisee based upon inaccurate enrollment reports.

The above information has been compiled from the FDD of Kumon. Year of FDD: 2025.
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