How much does a Kumon franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $68,000–$144,000. The franchise fee is only $1,000–$2,000 — the lowest of any major national education franchise. The primary variables are leasehold improvements (center-based vs. home-based) and working capital needs during the enrollment ramp.
How does Kumon's per-student royalty work?
Instead of charging a percentage of your gross revenue, Kumon charges a flat monthly fee per enrolled student — approximately $32–$36 per student per month. This means a center with 80 enrolled students pays roughly $2,560–$2,880/month in royalties regardless of what tuition rate you charge. The structure creates predictable royalty costs but also means lower-enrollment centers have royalty costs that represent a higher percentage of revenue.
Can I run a Kumon franchise from home?
Yes — Kumon offers a home-based program option that reduces the investment to the lower end of the $68K range. Home-based operations eliminate commercial lease costs but limit enrollment capacity. Most center-based Kumon operators eventually transition from home programs as enrollment grows.
Can I use SBA financing for a Kumon franchise?
Yes. Kumon is on the SBA Franchise Directory. SBA 7(a) and SBA microloans are both applicable depending on total project size.
What DSCR do lenders require for a Kumon franchise SBA loan?
SBA SOP 50 10 8 sets a minimum global DSCR of 1.15×. In practice, SBA participating lenders for education franchise startups require 1.25×+. For Kumon, the DSCR pro forma is built on projected enrollment × tuition rate, net of the per-student royalty ($32–$36/student/month), lease costs (center-based), and operating overhead. Year-one projections should use conservative ramp assumptions from FDD Item 19 comparable-center data — most centers do not reach target enrollment until month 12–24. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity injection is required for a Kumon franchise SBA loan?
SBA requires a minimum 10% equity injection of total project cost. At Kumon's $68K–$144K investment range, that is $7K–$29K from the borrower's own verifiable funds. Many Kumon operators enter with more than the minimum — the low absolute investment makes partial or full self-funding realistic, which can eliminate the need for SBA debt entirely at the lower end of the range. Borrowed equity (e.g., a personal loan used as the injection) is generally not acceptable. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.
Do I need a special license to run a Kumon center?
Kumon is a supplemental tutoring service, not a licensed school, so in most US states supplemental tutoring itself does not require an education license. However, home-based programs or centers serving young children may trigger childcare registration requirements in some jurisdictions. A standard state business license and local zoning compliance are required in all markets.
How long does it take a Kumon center to reach full enrollment?
Most Kumon centers take 12–24 months to reach target enrollment. Lenders model a conservative ramp trajectory for this period — early DSCR may fall below 1.0× until enrollment stabilizes — which is why working capital reserves covering 6–12 months of operating costs are the buffer underwriters typically require.
