Kumon vs Sylvan Learning
Kumon vs Sylvan Learning: Kumon costs $73K to $165K to open; Sylvan Learning costs $108K to $239K. Kumon has 1,689 units, Sylvan Learning has 218. SBA loan history: Kumon = 115 loans (7.0% default); Sylvan Learning = 256 loans (22.7% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Kumon vs Sylvan Learning: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Kumon requires the lower minimum capital commitment ($73K vs $108K for Sylvan Learning), a 32% spread. Initial franchise fees come in at $2K for Kumon versus $37K for Sylvan Learning, Kumon has the lower entry fee. Ongoing royalty load is 6% for Kumon and 11% for Sylvan Learning, giving Kumon the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Kumon operates 1,689 units to Sylvan Learning's 218, roughly 8× the system size. Kumon has been operating 68 years (founded 1958) versus 47 for Sylvan Learning (founded 1979), a 21-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Sylvan Learning has the deeper SBA lending track record, with 256 7(a) approvals compared with 115 for Kumon.
Risk Signal
SBA default rates are 7.0% for Kumon and 22.7% for Sylvan Learning, Kumon has the cleaner SBA loss record by 15.7 points. PeerSense FPI scores come in at 76 (Strong) for Kumon and 31 (Fair) for Sylvan Learning, giving Kumon the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 76/100 | 31/100 |
Health Tier | Strong | Limited |
Confidence | N/A | N/A |
Lending Trend | Stable | Declining |
SBA Lending
SBA Loans | 115 | 256 |
SBA Volume | – | – |
Default Rate | 7.0% | 22.7% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $73K to $165K | $108K to $239K |
Franchise Fee | $2K | $37K |
Royalty Rate | 6% | 11% |
Ad Fund | 2% | 5% |
Liquid Capital | N/A | $75K |
Net Worth Required | $150K | $150K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Disclosed |
System Size & Operations
Total Units | 1,689 | 218 |
Franchised Units | 1,671 | 218 |
Company Owned | 18 | – |
Term Length | 5 yrs | 10 yrs |
Brand Information
Year Founded | 1958 | 1979 |
Franchising Since | 1983 | 1960 |
Years Franchising | 43 yrs | 66 yrs |
Headquarters | SAN CLEMENTE, CA | Hunt Valley, TX |
Category | Exam Preparation | Exam Preparation |
Website | ||
FDD Year | 2026 | 2026 |
Which Is Better, Kumon or Sylvan Learning?
Lower upfront capital required
Kumon
Kumon: $73K starting · Sylvan Learning: $108K starting
More SBA lender confidence
Sylvan Learning
Kumon: 115 SBA loans · Sylvan Learning: 256 SBA loans
Lower SBA default rate
Kumon
Kumon: 7.0% · Sylvan Learning: 22.7%
Larger system & brand presence
Kumon
Kumon: 1,689 units · Sylvan Learning: 218 units
Lower ongoing royalty load
Kumon
Kumon: 6% · Sylvan Learning: 11%
More lender financing options
Sylvan Learning
Kumon: 63 unique lenders · Sylvan Learning: 97 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Kumon vs Sylvan Learning: Franchise Funding Comparison
Comparing Kumon and Sylvan Learning is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $73K to $239K.
Kumon has 115 SBA loans on record and Sylvan Learning has 256. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Kumon vs Sylvan Learning, Frequently Asked Questions
Which is a better franchise investment, Kumon or Sylvan Learning?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman