Mathnasium Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2003

Headquarters: Los Angeles, California

Estimated Number of Units: 1,165

Franchise Description: The franchisor is Mathnasium Franchisor, LLC. The franchisor offers and awards franchises throughout the United States for the operation of learning centers that provide math instruction using the Mathnasium education method at locations the franchisor has approved. 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 four and 17 years old.
Training Overview: The franchisor requires that the Center Director (if the Center Director is an owner of the franchise or the franchisee) and one owner who is the largest equity owner of the franchise or the franchisee (if that person is not also the Center Director) start and successfully complete to the franchisor’s satisfaction the initial training program within 180 days after the Franchise Agreement is signed. The initial training program is currently divided into four stages, plus a continued learning session. Stage 1 of the initial training program consists of approximately 30 hours of online self-paced training videos, written assignments, and knowledge checks. Stage 2 of the initial training program consists of 4 half-days of live training instruction in a virtual classroom. Stage 3 of the initial training program consists of approximately 40 hours of online self-paced training videos, written assignments, and knowledge checks. Stage 4 of the initial training program consists of 4 half-days of live training in a virtual classroom. Stage 4X of the initial training program consists of 3 full days of practical application of Mathnasium’s business and educational practices in Los Angeles, California. The continued learning session of the initial training program, currently known as “Building Blocks,” consists of 1 hour webinars each month over the first 12 months of operations. The franchisor will provide periodic ongoing or supplemental training, as specified in the manuals.

Territory Granted: Franchisees will be granted a designated territory with protective rights. If franchisees are complying with system standards, minimum enrollment, and gross receipts requirements, then the franchisor and its affiliates will not locate, and will not authorize a third party to locate another Mathnasium center within the designated territory. The territory will consist of the geographic area within the boundaries specifically described or depicted in the Franchise Agreement. The franchisor determines the size and boundaries of territories based upon demographic data available. The franchisor will assign franchisees a territory that it believes to contain at least 2,500 children between the ages of 5 and 19 years at the time the Franchise Agreement is signed. The actual location of the center must be inside of the territory’s boundaries and approved by the franchisor.

Obligations and Restrictions: The franchisee, whether they are an individual, corporation, limited liability company, partnership or other entity, they are at all times responsible for the management of the center. The franchisor is not seeking to license franchisees if the owners of these franchisees are merely seeking a passive investment. Additionally, as required by the Franchise Agreement, franchisees must act as or employ a Center Director for the center. The name of the Center Director must be disclosed to the franchisor and should the Center Director change, the franchisor must be notified in writing. The Center Director must successfully complete the initial training program or other training program designated by the franchisor. 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 minimum hours as set forth in the manuals. Franchisees must ensure that there are always at least two adults present when there are children in the center. Franchisees may offer only Mathnasium programs, and only in accordance with the system.Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing, they can execute successor franchise agreement for additional five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing for a first Mathnasium center unless the franchisee is employed as a Center Director at a Mathnasium center and meets certain eligibility requirements as set forth in the manuals. The franchisor offers a 25% discount off the initial franchise fee to all qualified teachers, former teachers or administrators of educational institutions (employed in the last 5 years with at least 3 years spent in that role), or college graduates with a bachelor’s, master’s or doctorate degree in education within the last 10 years who have held an education role within the last 5 years (and spent at least 3 years in that role). If franchisees are, or if one of the owners is, a veteran honorably discharged from the U.S. Armed Forces or on active duty in the U.S. Armed Forces on the agreement date, the initial franchise fee for the first new franchise will be reduced by 25%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee (for first center)	$49,000	$49,000
Expenses While Training	$2,500	$3,000
Technology Fee	$186	$1,116
Rent (1st and Last Month's Rent)	$6,000	$14,000
Paint, Carpet and Tenant Improvements	$5,500	$13,500
Furniture, Signs, Equipment and Supplies	$10,000	$17,000
Insurance (annually)	$1,200	$1,500
Business License, Name Registration	$250	$1,000
Professional Services (Legal and/or Accounting)	$1,300	$2,000
Phone and Utilities	$500	$1,000
Video Surveillance and Related Equipment	$500	$2,500
Pre-Open Advertising	$4,000	$4,000
Additional Funds (4 Months)	$32,000	$40,000
ESTIMATED TOTAL (for first center)	$112,936	$149,616

 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. 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) $1,500.
Base Royalty	$650 per month.
Monthly Marketing Fees	$250 plus 2% of monthly gross receipts from all sources as a result of operating the center.
Digital and Local Marketing Fee	A minimum of $1,000 per month.
Technology License Fee	Currently $186 per month per center.
Annual Convention Fee	Currently $500 per attendee.
Administrative Fee for Late Payment	$100 every two 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 Payment 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	$7,000
Training Fee	$3,000
Renewal Fee	$7,000
Initial Training Tuition for Additional Trainees	$750 per day per person.
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 the franchisor due to the operation of the franchisee’s center.

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