Investment

Key costs

The costs of setting up a Kumon franchise can vary according to many factors, including location, type of venue, advertising costs and staffing structure. These costs include:

Franchise Fee

Our initial franchise fee when you begin a Kumon franchise is only NZ$1,200. This one-off fee is much lower than other franchises.

New Franchisee Training

Our New Franchisee Training itself is free of charge. However, if you are not based in Melbourne, where our National Training Centre is located, you will need to pay for travel, accommodation and meals in Melbourne for two four-day training sessions.

Start-up costs

Similar to the initial costs involved in starting any business, costs to consider when opening a new Kumon Education Centre include business registration costs, business infrastructure such as a phone and office set-up, stationery for your education centre, marketing and promotion including Grand Opening advertising, and the relevant screen checks required to work with children (this varies depending on your state or territory).

Operating costs

Key operating costs to consider as a new Kumon franchisee are Public Liability Insurance, rent, staff wages and royalty fees. Kumon franchises operate from a variety of venues, including commercially leased premises, and hired venues such as libraries and community centres. At December 2014, 30% of Kumon franchises operated from commercially leased premises and supported over 50% of our enrolment numbers.

A range of estimated start-up costs, based on our current experience with leased commercial premises and hired non-commercial premises, is outlined on the following two pages. New franchisees typically commence operation from leased commercial premises.