Mathnasium uses an exclusive Master Franchise partnership model per country – see more at A Master Franchise is a great opportunity,
yet also comes with a sizeable investment and risk, which requires an investment of at least
$300,000 USD; however, it is important to understand this is the minimum and typically for a
Small market. Medium and Large sized markets will see a higher total investment.

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 while also selling sub-franchises. The
capital requirements increase as you open additional company-owned locations and/or as the
size of the country increases.

Small markets: Chile, China Provincial Small, Colombia, Czech Republic, Denmark, Finland, Hong Kong, Hungary, Ireland, Israel, Malaysia, Morocco, New Zealand, Peru, Philippines, Portugal, Qatar, Singapore, Thailand

Regional markets: Australia – Victoria & Tasmania, Australia – Queensland & N. Territory, Australia – Western & South Australia

Medium markets: Argentina, Austria, Belgium, China Provincial Medium, Indonesia, Netherlands, Norway, Poland, Saudi Arabia, South Africa, Sweden, Switzerland, Taiwan, Turkey

Large markets: Brazil, China Provincial Large, France, Germany, Italy, Japan, Mexico, Russia, South Korea, Spain

*Small/Medium/Large is not solely based on population/geographic size. Other variables are considered regarding overall size of the potential Mathnasium opportunity.

Mathnasium Investment Summary (Estimate)

The investment can be broken down into 3 phases:

Phase of InvestmentSmall and Regional Markets (USD)Medium Markets (USD)Large Markets (USD)
Phase 1: Franchise Fees$125,000 - $275,000$300,000 - $500,000$550,000 - $2,525,000
Phase 2: Commence Operations$75,000 - $125,000+$75,000 - $125,000+$75,000 - $125,000+
Phase 3: Expansion$100,000 - $150,000+$100,000 - $150,000+$100,000 - $150,000+
Phases 2-3: Extra Funds$0 - $125,000+$0 - $150,000+$0 - $175,000+
Total Investment Range$300,000 - $675,000+$475,000 - $925,000+$725,000 - $2,975,000+

More detail on each phase:

1. Phase 1/Year 0: Investing in the Mathnasium Franchise License

  • Initial Franchise Fee and Curriculum Adaption Fee
  • Ranges from $125,000 USD to $2,525,000+ USD per country. Initial fees are based on the size of the country, the number of learning centers, and the potential revenue your territory can generate.

2. Phase 2/Years 1-2: Open Learning Center #1

3. Phase 3/Years 3+: Regional Expansion

  • Open additional company-owned locations and begin selling sub-franchise locations.
  • Phase 3 investment will range from $100,000 USD to $150,000+ USD based on the number of company-owned locations you will own/operate.

4. Capital Investment Extra Funds

  • 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 $0 USD to $175,000+ 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.