Opening a Kumon Learning center in the United States in 2025 requires an in-depth understanding of the financial commitments involved. The total amount of investment necessary to open the operation of a Kumon Centre franchise ranges from approximately $73,783 to $165,920. This estimate contains various expenditures essential for setting up and running the center.
Breakdown of the Initial Costs.
There are quite a few things that would cost you some amount of money before you open a Kumon center. A breakdown of these costs includes:
- Franchise fee: The initial franchise fee is $1000, and for first-time Kumon franchisees, a $1000 training agreement deposit fee is required. This is applied towards the franchise fee upon successful completion of the instructor Development program.
- Initial purchase of materials: An investment of about $2000 is required to make a purchase of the necessary materials, such as instructional answer books, student test books, promotional items, and so on.
- Tenants’ improvements: the cost of this is largely dependent on the location and condition of the facility of choice. The renovations can cost between $30,000 and $60,000.
- Security deposits: This is dependent on the lease agreement, if required. It can range from $0 to $26,500.
- Architectural designs: these services may range from $0 to $10,000. They can vary by project complexities or local requirements.
- Rent: the cost of rent is influenced by the location of the center and its size, and this can cost between $3000 to $7000.
- Technology: a notebook computer costs around $500 to $2000.
- Kumon lead management system suite: this costs between $200 and $550.
- Background checks: This is to ensure compliance with safety rules and regulations, and it costs $18 to $60.
- Professional fees: legal services, accounting services, and some other professional services might incur a few dollars. It is advised to estimate $1000 to $3000 for them.
- Business license and name registration: These cost about $100 to $200.
- Payroll for assistants: The budget for payment of staff for the first three months is estimated to be between $8,820 and $12,870.
- Additional funds: $16,000 to $21,660 can be budgeted for any unforeseen circumstance within the first three months, at least.
Financial qualifications.
Prospective franchisees are expected to have a net worth of at least $150,000 and $70,000 in liquid capital. This is to ensure that the franchisees possess the necessary resources required to start and sustain the Kumon Centre.
Ongoing expenses.
It is important to note that beyond the initial costs of setting up a Kumon center, there are a few additional costs that may arise as ongoing expenses. These include:
- Royalty Fees: This is approximately $30 per new enrolled student, with adjustments during the temporary license period.
- Insurance: this includes monthly premiums of $4.80 per student.
Kumon incentives.
Kumon offers up to $38,700 in incentives to assist with initial setup costs to franchisees. These incentives include:
- Primary Signage: provision of the main exterior signs, including permits and installation. This is valued between $4,800 and $7,000.
- Furniture and Fixtures: supply of necessary furniture, valued at about $10,000.
- Rent Reimbursement: this entails settling 50% of the rent for the first 12 months, which is up to $1000 per month.
- Paint, Carpet, and Window Coverings: reimbursements up to $5,500 are made for these interior elements.
- New Centre Marketing: contribution of up to $6,300 towards local digital marketing.
Establishing a Kumon Center in the U.S. in 2025 involves about $73,783 to $165,920. This covers all that is essential to get the center running.
