How Much Profit Can a Person Make From a Kumon Franchise?
The profit of a Kumon franchise varies depending on the number of students and the cost of operation. If the numbers are based on the recommended student tuition of $75 per month with a $30 registration fee per student, and assuming at least 50 students by the end of the first year of operation, revenues would total $3,750 per month. All franchises differ, but according to Entrepreneur, upwards of $12,000 per month have been reported from one of the many Kumon franchises.
Kumon requires that candidates taking on the franchise pass a proficiency test. When the test is passed, they are extended a temporary license training period (TLP) for the first 12 months. During the TLP, a royalty fee of $31.50 per student per month must be paid, which will drop to $28 per student per month when the TLP is over. During the first 36 months of operation, Kumon is willing to assist with rent for up to 12 months. After getting past the start-up fees, testing fees and higher royalty fees during the TLP stage, a Kumon franchise has proved to be a lucrative business. By maintaining a high volume of students, the earning potential is likely higher than a teacher’s salary.