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Investment

Investment

Estimated costs for a hired non-commercial venue

Some franchisees may wish to reduce initial costs and grow their business before committing to a commercial lease.

Franchisees who operate from non-commercial venues typically hire the venue only for the hours during which their classes run and as required for events such as new parent information nights, parent interviews, and enrolment sessions.

This can result in a significantly lower rental cost than that of commercially leased venues, but does not have the brand exposure, professional image or flexibility that comes with leasing commercial premises.

Estimated start-up costs (non-commercial venue)

Expense
Details
Venue hire
Amount: $300 - $900 per month
Due: Monthly
Payment made to:Venue
New Franchisee Training
Amount: $100
Due: Prior to commencement of operations
Payment made to:Individual suppliers
Franchisee to cover basic internet costs to join online training.
Paid to individual providers.
Franchise fee
Amount: $1000
Due: Prior to signing Franchise Agreement
Payment made to:Kumon Australia and New Zealand
Franchise agreement must be signed within three months of completing New Franchisee Training.
Business name registration
Amount: $35 - $82
Due: Annualy
Payment made to:ASIC
Additional, separate fees apply if a franchisee chooses to register a company.
National Police Check
Amount: $42
Due: During recruitment phase
Payment made to:Screening authority
Professional fees: legal, accounting, business advice
Amount: $500 - $1500
Payment made to:Individual Supplier
Public liability insurance
Amount: $400 - $600
Due: Annualy
Payment made to:Individual Supplier
Minimum $5 million coverage required.
Workers Compensation Insurance
Amount: $175 - $250
Due: Annualy
Payment made to:Individual supplier
Premium will vary by state and total wages payable.
Franchisees may choose not to employ staff immediately upon starting.
Furniture
Amount: $200 - $500
Due: Prior to commencement of operations
Payment made to:Individual suppliers
Computer equipment
Amount: $500 - $2000
Due: Prior to commencement of operations
Payment made to:Individual supplier
Kumon Australia and New Zealand has minimum requirements for computer equipment.
Stationery and sundry items
Amount: $100 - $300
Due: Prior to commencement of operations
Payment made to:Individual supplier
Total estimated start-up cost range
Amount: $100 - $7174