Mathnasium Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$112,936 - $149,616
Total US Locations
999
Business Summary
Mathnasium Learning Centers offer math instruction to children aged 4 to 17 using the proprietary Mathnasium MethodTM. These centers provide diagnostics to identify learning needs, create customized learning plans, and deliver engaging live instruction. Mathnasium Centers typically operate at least five days a week during after-school hours, with children usually attending twice a week for approximately 60-minute sessions.
Corporate History
Mathnasium Franchisor LLC was formed as a Delaware limited liability company on July 11, 2024, and began offering Mathnasium franchises in September 2024. This followed a secured financing transaction (Securitization Transaction) in August 2024, which restructured Mathnasium Holdings, LLC and its affiliates. As a result, Mathnasium Franchisor LLC became the franchisor for all Mathnasium franchise and development agreements outside Canada, taking over this role from its predecessor, Mathnasium Center Licensing, LLC (MCL). MCL, which offered Mathnasium franchises from late 2003 to August 2024, now provides support and services to franchisees under a management agreement. In November 2021, a private equity firm, Roark Capital Management, LLC, acquired a majority interest in Mathnasium Holdings, LLC.
Financial Overview
Investment Range
$112,936 - $149,616
Franchise Fee (High)
$49,000
Royalty %
10%
Marketing %
2%
Equipment Costs (Low)
$16,000
Equipment Costs (High)
$33,000
Working Capital
$36,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Mathnasium Franchisor LLC's audited financial statements for the fiscal year ending December 31, 2024, and its predecessor Mathnasium Center Licensing, LLC's audited financial statements for the years ending December 31, 2024, 2023, and 2022, do not contain any substantial doubt about the company's ability to continue as a going concern, as stated by the independent auditor.
Financing Details
Mathnasium Franchisor LLC generally does not offer direct or indirect financing for a franchisee's first Mathnasium Center. However, it may finance $15,000 of the $26,500 initial franchise fee for franchisees purchasing an additional center or for existing Center Directors who meet specific eligibility requirements. This financing is provided via a promissory note with simple interest at 10% per year, repayable over 20 months through electronic funds transfer. The note is secured by a personal guaranty from the franchisee and their spouse or, if an entity, by all owners and their spouses. The promissory note can be repaid early without penalty.
Performance Metrics
Total US Locations
999
Franchised Units
995
Corporate Units
4
Avg Square Footage
1,400
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Mathnasium Franchisor LLC discloses three litigation cases in Item 3, all involving affiliated programs rather than the Mathnasium brand itself. These cases primarily concern "no-poaching" provisions in franchise agreements and a cyberattack, which were settled or concluded in 2019 and 2020. Mathnasium Franchisor LLC states that these actions have no impact on its brand and do not allege any unlawful conduct by the company. No other litigation is required to be disclosed for Mathnasium Franchisor LLC.
Bankruptcy History
Mathnasium Franchisor LLC has no bankruptcy information required to be disclosed in Item 4.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Mathnasium franchise agreement, franchisees must notify Mathnasium in writing between 90 and 180 days before their agreement expires. They must be in strict compliance with their current agreement and manuals, have received no more than one written default notice per calendar year, and be current with all financial obligations. Franchisees are also required to maintain satisfactory customer service records and minimum customer satisfaction scores. Other conditions include executing a general release, signing Mathnasium's then-current successor franchise agreement (which may have different terms), relocating or renovating their center to meet current standards if required, and ensuring the Center Director and instructors complete any necessary training. Renewal is also contingent on Mathnasium offering new or successor franchises in the franchisee's territory at the time of the request and signing, and a renewal fee of $7,000 is due, which can be paid in installments.
Training & Support Program
Franchisor Assistance
Mathnasium Franchisor LLC provides comprehensive assistance to its franchisees, starting with pre-opening support that includes reviewing and approving the proposed site, designating a descriptive community name for the center, providing digital access to manuals, and verifying insurance and background check vendors. Mathnasium offers an initial training program with online, virtual classroom, and in-person sessions in Los Angeles, California, covering business operations, teaching methods, marketing, sales, hiring, and customer retention. After opening, franchisees receive ongoing access to the system and manuals, notifications of system modifications, and guidance on maintaining center appearance and standards through quality assurance reports and site visits. Mathnasium also provides supplemental training, requires attendance at an annual convention, and makes monthly marketing contributions to eligible franchisees. The franchisor manages national, regional, and local advertising efforts through a Marketing Fund and a Centralized Digital and Local Marketing Program, and negotiates purchase agreements with suppliers. Franchisees are required to use Mathnasium's centralized computer system, Radius, for business management.
Initial Training Hours
141
Training Location
Online & Los Angeles, CA
Ongoing Support
After opening, Mathnasium franchisees receive ongoing electronic access to the system and manuals, and are notified of any changes or modifications to the system. Mathnasium also provides periodic ongoing or supplemental training, as specified in the manuals, which franchisees are required to participate in, though they are responsible for their own travel and living expenses. Mathnasium conducts regular site visits, inspections, and provides quality assurance reports, requiring franchisees to implement recommended changes within 30 days. Franchisees must also participate in customer surveys. Mathnasium holds annual conventions that franchisees are required to attend (with a fee). The franchisor supports advertising efforts through a Marketing Fund and a Centralized Digital and Local Marketing Program for national, regional, and local marketing. Mathnasium also provides a policy for monthly marketing contributions to existing franchisees who acquire an additional existing franchise business.
Franchise Requirements
Ideal Candidate Profile
Mathnasium Franchisor LLC seeks franchisee candidates whose owners are committed to actively participating in the direct operation and daily affairs of their Mathnasium Center, as the company is not looking for passive investors. While not strictly required, Mathnasium offers discounts to individuals with backgrounds in education, such as credentialed teachers, educational administrators, or those with degrees in education who have spent at least three years in an education role.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Non-Exclusive
Territory Size Requirements
Mathnasium Franchisor LLC assigns franchisees a designated territory whose boundaries are specifically described in Attachment 1 of the Franchise Agreement. These territories are determined by Mathnasium and are believed to contain at least 2,500 children between the ages of 5 and 19 years at the time the agreement is signed. Mathnasium reserves the right to reconfigure territory boundaries to better reflect the center's target market, or due to changes in geographic data, zip codes, or demographic information, or to correct errors. This reconfiguration may occur not more than once during the agreement term, with efforts to maintain similar demographic makeup.
Staffing Notes
Mathnasium Franchisor LLC requires franchisees to act as or employ a Center Director who must successfully complete the initial training program and dedicate their full time during normal business hours to managing, operating, and developing the center. This includes overseeing parent communications, supervising staff, administering student assessments, managing session activities, and making marketing decisions. Franchisees may employ qualified assistants or instructors, for whom they must conduct background checks through a designated vendor according to manual procedures. During operating hours, a live person must answer the center's telephones, and Mathnasium may mandate the use of a designated answering service. Additionally, at least two adults must be present in the center whenever children are present.