Risk Score
Pending analysis
Investment Range
$73,123 - $165,360
Franchise Fee
$1,000
Total US Locations
1,689
Business Summary
Kumon North America, Inc. operates after-school learning centers called Kumon Centers. These centers provide math and reading programs using the Kumon Method, which is a mastery-based system focused on speed and accuracy. Students typically attend Kumon Centers twice a week for 20-30 minutes per subject and complete daily assignments at home. Kumon North America, Inc. also offers a dedicated online platform, Kumon Connect, using digital worksheets for in-person, hybrid, or online learning.
Corporate History
Kumon North America, Inc. was incorporated in Delaware on December 4, 1989, and began offering franchises in 1994. The company's name was changed from Kumon U.S.A., Inc. to Kumon North America, Inc. on April 18, 2001. Kumon North America, Inc. is a subsidiary of Kumon Institute of Education Company, Ltd. ("KIE"), a Japanese corporation, which established a group management concept with six regional headquarters worldwide. The Kumon Method itself was developed by Toru Kumon in Osaka, Japan, in 1954, and Kumon Educational Japan Co., Ltd. was established in 1958.
Financial Overview
Investment Range
$73,123 - $165,360
Franchise Fee (Low)
$1,000
Franchise Fee (High)
$2,000
Equipment Costs (Low)
$8,300
Equipment Costs (High)
$20,150
Working Capital
$18,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kumon North America, Inc. appears to be in a strong financial position, showing consistent net income growth, healthy cash flows from operations, and declining liabilities over the past three fiscal years. The company's current assets significantly exceed its current liabilities, indicating strong liquidity and working capital. The independent auditor has issued an unqualified opinion on the financial statements, and management has determined there are no indicators that would raise substantial doubt about Kumon North America, Inc.'s ability to continue as a going concern.
Financing Details
Kumon North America, Inc. does not offer any direct or indirect financing options to its franchisees. Additionally, Kumon North America, Inc. does not guarantee any promissory notes, leases, or other financial obligations that a franchisee might incur with third parties. Franchisees are responsible for arranging their own funding.
Performance Metrics
Total US Locations
1,689
Franchised Units
1,671
Corporate Units
18
Avg Square Footage
1,000
Franchising Since
1994
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Kumon North America, Inc. has no litigation to report in Item 3 of its FDD. This indicates a clean legal record with no lawsuits, arbitrations, or legal disputes that are required to be disclosed.
Bankruptcy History
Kumon North America, Inc. has no bankruptcy history to disclose in Item 4 of its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
Kumon North America, Inc. franchisees wishing to renew their franchise agreement must provide timely notice, undergo and pass new background checks and fingerprint-criminal history records by the Federal Bureau of Investigation, and be in full compliance with the Franchise Agreement. They must not have received more than one written notice of default in any calendar year and must demonstrate compliance with the Kumon Method, satisfactory Center communication and management skills, and adequate proficiency in hybrid and online instruction if offered. Additionally, franchisees must earn a minimum of 50 Professional Development Credits (PDCs) and execute a General Release. They will also be required to sign Kumon North America, Inc.'s then-current form of Franchise Agreement, which may contain terms and conditions materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Kumon North America, Inc. provides extensive support to its franchisees before and after they begin operating their Kumon Center. Before opening, Kumon designates the Center's name and approves its facility. It provides an initial set of promotional and instructional materials (for a fee), verifies insurance coverage, and reviews corporate paperwork. Kumon also orders and installs the exterior sign, reimbursing the cost of fabrication and installation. It selects and delivers initial furniture and fixtures, and reimburses for the cost of initial carpet, window blinds, shades, and paint up to a specified limit. Franchisees also complete the Instructor Development Program. After opening, Kumon supplies necessary Kumon Materials like Placement Tests, Achievement Tests, and Worksheets. It licenses proprietary computer software and a customer management system. Ongoing assistance includes additional training, online modules, instructor conferences, and periodic meetings. Kumon assigns a Center domain name for a link on its website and an exclusive email address for business. It investigates unauthorized use of its Proprietary Marks and notifies franchisees of updates to the Kumon Method and operational manuals. Additionally, Kumon may review and potentially incorporate and compensate franchisees for any additional services or products they develop for their center.
Initial Training Hours
351
Training Location
Online, at a Kumon branch office, and at an existing Kumon Center
Ongoing Support
Kumon North America, Inc. provides ongoing support to its franchisees after their centers open. This includes additional training and educational opportunities such as online training modules, Instructor Conferences, and periodic instructor meetings, often held at branch offices. Kumon North America, Inc. also supplies necessary Kumon Materials, licenses its proprietary computer software and customer management system, and manages a Kumon Center domain name and email address for each franchisee. The franchisor investigates unauthorized use of its trademarks and notifies franchisees of any changes or modifications to the Kumon Method and operational manuals. Additionally, Kumon may review and potentially incorporate and compensate franchisees for any additional services or products they develop for their center. Ongoing training includes Instructor Achievement Testing, attendance at monthly instructor meetings and/or online training, professional development activities, and additional classroom training. Specific activities like Kumon branch-sponsored monthly meetings, voluntary study groups, annual national Instructor Conferences, study tours, and Kumon University training programs are available.
Franchise Requirements
Ideal Candidate Profile
Kumon North America, Inc. seeks franchisees who demonstrate adequate proficiency in both mathematics and reading, as determined by proficiency tests. Ideal candidates are also evaluated on their communication skills, business acumen, and ability to work effectively with Kumon staff and children. Franchisees must commit to full-time dedication to operating their Kumon Center throughout the franchise relationship.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Kumon North America, Inc. does not grant exclusive territories to its franchisees. There are no specific territory size requirements defined by a fixed radius, population, or geographic area. Instead, while franchisees can solicit students from any geographic area, they are restricted from enrolling students who reside beyond what Kumon North America, Inc. determines, in its sole discretion, to be a "reasonable commutable distance" from their Center.
Staffing Notes
Kumon North America, Inc. franchisees are responsible for hiring, training, and assigning work to their assistants. These assistants must be competent, of good character, and qualified to work with children. The franchisee (or Corporation Instructor) must personally conduct instruction or supervise assistants who do so, and cannot allow assistants to instruct unsupervised without an explicit exception from Kumon North America, Inc. Franchisees must conduct criminal background checks on all assistants aged 18 or older to ensure their suitability. Additionally, all assistants over 18 must sign a Confidentiality/Non-Competition Agreement. Either the franchisee or a trained assistant capable of scheduling assessments must be physically present when the Center is open for business.