Franchise Review - Mathnasium

If you are a parent did you ever have trouble finding a tutor? Not anymore just check out your local strip mall!

Mathnasium locations assist young students with the difficulty of learning math. They are noted as to opening up 1 franchise per week now which is a rapid rate. As of today they could have over 200 locations with only a couple of them company owned. There is and always will be a need to assist kids in many areas of studies as parents want their kids to excel greatly in school. It really comes down to are they willing to pay for it.

Lets take a look at the basics.

Liability - Low (unless you teach them 2+2 is 2, then you may have a problem)

Franchise Fee - $15,500 at signing (on the light side but the $325 per month and 11% of revenues is steep)

Startup Cost - $50-70k (reasonable)

Risk - Low to moderate

I have seen a couple of general learning businesses around here fail but I am not sure they were as highly focused as Mathnasium is.

The costs from their website

“What do parents pay to enroll their children in Mathnasium?

Tuition in the US typically includes a one-time $100 registration and testing fee plus about $175 to $225 per month enrolled, for a 6-12 month commitment. Parents then bring their children to the center when convenient, typically twice a week, for about an hour. “

It seems like a lot then again it doesn’t. What would you pay a private tutor for the same amount of hours? I am sure a bit more then that but it is still a lot on top of everything else a kid needs, hey kids are costly period! The real upside is that any parent that wants to get their kid extra help would be willing to pay that price since it wouldn’t exactly be unreasonable to most.

The training seems light but if the developed their system as they said they did then maybe you do not need much training. I have a feeling you won’t need to be a math guru yourself to run this business so with their material and training one would assume you are all set.

I guess it is time to check those school ratings and wherever they have the lowest ratings it is time to setup shop because the profit potential on this one seems decent.

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