The country/regional partnership requires an investment of at least $650,000 USD. As a component of this investment, our licensees are required to own and operate a minimum of one Mathnasium Learning Center. We call this a company-owned location. You may own and operate more than one company-owned location, and in certain markets, you may also sell sub-franchises. The capital requirements increase as you open additional company-owned locations.
Mathnasium Investment Summary (Estimate)
The investment can be broken down into 3 phases:
|Rough Average||$1,125,000+ USD|
|Phase of Investment||Low End (USD)||High End (USD)|
|Phase 1: Franchise Fees||$100,000+||$500,000+|
|Phase 2: Commence Operations||$150,000+||$400,000+|
|Phase 3: Expansion||$200,000+||$400,000+|
|Phases 2-3: Buffer||$200,000+||$300,000+|
More detail on each phase:
1. Phase 1/Year 0: Investing in the Mathnasium Franchise License
- Initial Franchise Fee, Curriculum Adaption Fee, and a Website Presence Fee
- Ranges from $100,000 USD to $500,000+ USD per country/region. Initial fees are based on the size of the country/region, the number of learning centers, and the potential revenue your territory can generate.
2. Phase 2/Years 1-2: Learning Centers #1 through #3 Open
- Open the first learning center. On average, the capital required to develop a single learning center ranges from $75,000 USD to $125,000+ USD, per center.
- In some countries/regions, sub-franchising may begin at learning center #2; however, many partners own/operate more than one company-owned location.
- We do not have market-specific data for your country/region, however, as a rough guideline, you can see the investment required to open a single learning center in the USA, Canada, UK, and Hong Kong (excluding franchise fee):
- USA (USD) – http://www.mathnasium.com/franchise/investment/
- Canada (CAD) – http://www.mathnasium.ca/own-a-franchise/investment/
- UK (GBP) – http://www.mathnasium.co.uk/franchise-uk/investment/
- Hong Kong (HKD) – http://www.mathnasium.com.hk/franchise-hk/investment/
3. Phase 3/Years 3+: Regional Expansion
- Open additional company-owned locations and/or continue selling sub-franchise locations in markets where this is allowed.
- Phase 3 investment will range from $200,000 USD to $400,000+ USD based on the number of company-owned locations you will own/operate.
4. Capital Investment Buffer
- International business differs from country to country. As such, it is wise to have additional capital if needed.
- Plan on having access to an additional $200,000 USD to $300,000+ USD.
In general, the investment/risk/reward is determined by the number of company-owned and operated learning centers vs. sub-franchised learning centers.
- Sub-franchised network (own 1+, sub-franchise 20+) – lowest/lowest/lowest
- Company-owned network (own 20+, sub-franchise 0+) – highest/highest/highest
- Combination network (own 10+, sub-franchise 10+) – middle/middle/middle
Like a franchisor, if you have many sub-franchisees you are spreading your investment/risk/return across the sub-franchisees, however, your return is potentially less. If you own and operate all locations, all the investment/risk/return sits solely with you, yet the returns are potentially much larger.
When making the decision to become a Mathnasium franchisee, keep in mind that you are not only investing financially in a business. Even more importantly, you are investing the equity within yourself. What is that equity? It is your compassion, enthusiasm and your commitment to follow our systems – acting on every opportunity to make your business better. In turn, we are investing in you. Working together is the equation for success.
We look forward to working with you to prepare a more complete analysis for your market.