Kumon

For entrepreneurs considering supplemental education, Kumon addresses parents’ desire to support academic growth and self learning through individualized math and reading programs for students from preschool through high school. The Kumon Method began in 1954, when Japanese mathematics educator Toru Kumon created worksheets for his son, Takeshi, who was struggling academically. The first Kumon math center opened in Osaka, Japan, in 1955, and Kumon Institute of Education Co., Ltd. was established in July 1958. Toru Kumon continued refining and expanding the method internationally. Takeshi became the first Kumon student and later served as president of the Institute. Hidenori Ikegami is the current President, and the brand is headquartered in Japan.

Kumon has more than 23,500 centers in 62 countries and regions and serves over 3.5 million students each year. North America has more than 2,000 centers. The specific franchise opportunity headquartered in San Clemente, California, reports 53 total units and 96 franchised units. Founded in 1958, it began franchising in 1960. In 2022, Kumon was the largest tutoring chain in the United States, with nearly 1,900 locations and almost 20% of all tutoring centers. Entrepreneur ranked Kumon No. 5 in its Top Franchise Brand list for January 2026 and No. 1 among education franchises for 24 consecutive years. As of April 2025, Kumon was also No. 1 on Entrepreneur’s Top 100 Franchises for Less Than $100,000 for six consecutive years. The global exam preparation and tutoring market was approximately $71.64 billion in 2023 and is projected to reach about $116.58 billion by 2032, with a compound annual growth rate of roughly 5.5% from 2024 through 2032.

Supplemental education is supported by demand for tutoring and exam preparation. The global market is projected to rise from approximately $71.64 billion in 2023 to $116.58 billion by 2032 at roughly 5.5% annual growth from 2024 through 2032. In the United States, the tutoring market is estimated to grow from $26.1 billion in 2022 to $89.2 billion by 2030, reflecting an 11.6% annual rate. Demand is associated with competitive examinations, academic pressure, and the continued use of standardized testing systems worldwide. Parents are also increasingly willing to spend on supplemental education. For a buyer, these figures describe market demand rather than a guarantee of performance for an individual center.

Private tutoring centers, including Kumon locations, are concentrated in communities with higher income and parental education levels. Centers also frequently operate in communities with substantial immigrant and Asian American populations, where academic achievement may receive strong cultural emphasis. In 2022, approximately 6% to 7% of U.S. families with children ages 6 to 17 paid for tutoring, spending about $437 in months when they made such purchases. The sector is also seeing greater use of online tutoring, personalized exam preparation, adaptive learning technology, on demand services, outcome based learning, AI driven tutoring, and flexible learning models. Competition remains fragmented, while Kumon held the largest tutoring chain position in the United States in 2022, with nearly 1,900 locations and almost 20% of the market.

For the San Clemente, California opportunity, the initial franchise fee is $28,250. The broader Kumon network generally lists an initial franchise fee of $2,000. The San Clemente entity estimates total initial investment from $40,000 to $500,000. Costs can vary with location, leasehold improvements, furniture and equipment, primary signage, initial materials and supplies, professional fees, and working capital, including three months of assistant payroll and other operating funds. A typical Kumon center in the broader network is estimated at $73,123 to $165,360, or $73,783 to $165,920 according to another source.

Applicants must have at least $150,000 in net worth. Specific royalty and advertising fund percentages for the San Clemente entity are unavailable. The broader system charges a $30 initial enrollment royalty for each newly enrolled student in each reporting month. During a Temporary License Period, the monthly royalty is $40.50 per full payment student and $20.25 per partially exempt or prorated tuition student for each subject franchise. On January 1, 2026, those amounts increase to $42.75 and $21.38. After the Temporary License Period, the monthly royalty is $36 per full paying student and $18 per partially exempt or prorated tuition student for each subject franchise, increasing on January 1, 2026, to $38 and $19. The system offers marketing support and incentives for new centers, although an advertising fund percentage is not consistently stated. Other charges include a late payment administrative fee of 1.5% or $75, whichever is higher, late or inaccurate report fees from $200 to over $1,000, a $25 charge for each insufficient funds EFT attempt, and an insurance fee of $4.80 per math student per year. That insurance fee is scheduled to increase to $5.80 on June 1, 2025. A relocation fee of $2,000 also applies. U.S. incentives can total up to $38,700, including first year rent reimbursement equal to 50% of monthly rent, capped at $1,000 per month and potentially worth $12,000, plus a signage package valued from $4,800 to $7,000. The signage package covers permits, manufacturing, installation, electrical hookups, and sales tax. Veterans may qualify for an additional $10,000 incentive.

The franchisee, called the Instructor, is expected to operate the center directly and apply Kumon’s individualized learning method. Responsibilities include assessing students, tailoring learning plans, supervising staff during class, communicating with parents about progress, and handling bookkeeping and financial management. This is an active business requiring about 25 to 40 hours each week, often during evenings. Several assistants per shift are central to delivering the program. Without enough staff, a center may function mainly as a worksheet distribution site rather than providing individualized instruction and student engagement. Kumon centers generally use dedicated physical locations, while specific drive through or kiosk formats are not detailed. New franchisees receive six days of virtual instructor training covering the curriculum, placement tests, parent meetings, and potential center locations.

Ongoing support includes additional training, annual conferences, and assistance from a dedicated brand manager and field consultant. Kumon is also developing technology such as Kumon Connect to help Instructors with administrative work and give students online access to instructional materials. Specific territory exclusivity terms are not extensively covered. Instructors must devote full time to operating their Kumon franchise. They must also have a four year college degree and proficiency in math and reading.

Kumon Head Office reportedly takes about 40% of that revenue as commission in that region. New centers may remain unprofitable for at least five years, so working capital and patience are necessary during the ramp up period.