Kumon

Kumon, a Kumon North America franchise, has been franchising since 1958 — 4 years after the concept was founded in 1954 , currently with 26,000 total locations in the education sector, headquartered in NJ. According to the 2024 FDD, the total initial investment ranges from $74K to $154K — a 108% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $1K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.1% of gross sales. Critically, Kumon does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $140K, meaning the typical unit pays roughly $7K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Kumon added units at a 0.8% net rate year-over-year (500 openings, 300 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.