Kumon Australia & New Zealand

Established in 1958 in Japan, Kumon is a worksheet-based method of learning that develops students’ reading and mental calculation ability. The franchise has expanded worldwide with millions of students, in over 57 countries, who study Kumon worksheets every day. There are over 330 Kumon franchises across Australia and New Zealand. Owning and operating your own small business can be a big step. When researching a business opportunity, one important consideration is financial viability. With many prospective franchisees asking us about the costs involved in running a Kumon franchise, in this article we break down some key costs and the potential returns. **Key costs for establishing a Kumon franchise:** * An initial franchisee fee of $5,000 * Royalties are charged as follows: 50 percent royalty for each student’s $100 enrolment fee and 45 percent royalty for each student’s $140 tuition fee per subject, per month, (provisional licence). Once a franchisee obtains a full licence, this royalty decreases to 40 percent. Criteria for full licence includes a minimum of 12 months operation among other criteria. * Kumon covers the cost of the supply and delivery of all student worksheets, a new franchise launch kit containing the items you need to get started, national and state-based marketing campaigns, an assigned professional consultant, and various subsidies, among other support. * Total estimated start-up costs for a new Kumon franchise in a commercially-leased venue range from $9052 to $31,774. **Potential earnings from a Kumon franchise** Potential earnings for a Kumon franchise increase as the business grows. For example: * A franchise reporting 150 subjects with 10 new enrolments would likely have an annual operating income before tax of around $63,000. * A franchise reporting 200 subjects with 10 new enrolments, could have an annual operating income of just under $82,000, before tax. * If a franchise reports 300 subjects with 10 new enrolments, the annual operating income before tax is around $140,000. This trend continues as franchisees grow beyond 300 subjects. There are several key factors that determine the financial viability of a Kumon franchise. These include site exposure and signage, centre facility type, number of days and hours of operation, residential demographics, and the skill and effort that the franchisee contributes towards operating and promoting their business. We hope that this information will help your decision as to whether you would like to become a Kumon franchisee. To learn more, register for our next Information Meeting: [https://www.kumoninstructors.com.au/Franchise/Register](https://www.kumoninstructors.com.au/Franchise/Register) or [https://www.kumoninstructors.co.nz/Franchise/Register](https://www.kumoninstructors.co.nz/Franchise/Register) (NZ)

Kumon's costs and returns - how do we add up?