Personal services FDD 2026 Evidence confidence: High

Kumon franchise

The franchisee is a licensed instructor who owns and personally runs an after-school Kumon Math and Reading Center in leased retail space, enrolling children in worksheet-based math and reading programs delivered in-Center, online through the Kumon Connect platform, or in a hybrid of the two.

Total investment (Item 7)
$102K – $234K
Disclosed excl. real estate purchase
Franchise fee
$2,000
Disclosed
Royalty
$38–$43/month
Disclosed + ad fund $300/month
Average unit sales (AUV)
No Item 19
Not disclosed not disclosed
Outlets (2025-12-31)
1,710
Disclosed 1,705 franchised · 5 company
Franchised units, 2023–2025
+87 (+5.4%)
Derived from Item 20
Operating model:
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 15 — Obligation to participate in the actual operation
Page
PDF p. 47
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

If you are an individual, you must instruct the students personally.

An individual franchisee must instruct students personally, be present at the Center during all student sessions except in extraordinary personal circumstances, and devote full time to the franchise; outside employment or other business interests need Kumon's prior written approval. Assistants may instruct only under the franchisee's supervision unless Kumon grants an exception. A corporate or LLC franchisee must designate a Kumon-approved "Corporation Instructor" who carries the same personal and full-time obligations and must own at least 51% of the entity with power to direct its affairs. Kumon does not grant franchises to partnerships.

Conditions and responsibilities →

What stands out

  • Total initial investment of $101,630 to $233,780, with $6,500 to $7,500 payable to Kumon (Item 7, cover page).
  • Royalty is charged per student per subject per month: $38 after the Temporary License Period, $42.75 during it, plus $30 per new enrollment, so cost scales with enrollment rather than with sales.
  • No financial performance representation: Item 19 discloses no revenue, cost or profit data of any kind.
7 more observations
  • The franchisee must instruct students personally, attend all student sessions and work full time in the business; entity owners must also sign a personal guarantee.
  • No exclusive territory; Kumon may open Centers anywhere and sell through online and other channels.
  • 1,705 franchised and 5 company-owned Centers at December 31, 2025; franchised units grew by 87 over three years while company-owned Centers were sold down from 28 to 5.
  • 179 franchised openings against 92 closures, non-renewals and reacquisitions over 2023-2025, plus 210 transfers between franchisees in the same period.
  • Five-year term with five-year renewals; no arbitration provision and suits against Kumon must be brought in New Jersey.
  • Items 3 and 4 disclose no litigation and no bankruptcy.
  • Kumon may increase royalty rates on one year's notice with no contractual cap, and limits the registration fee a Center may charge.

Things to verify

  • Because there is no Item 19, ask current and former franchisees from Exhibits C and D about enrollment levels, tuition actually charged, staffing costs and how long a Center took to reach break-even.
  • Model the royalty at realistic enrollment: at $38 per student per subject per month, a Center with 100 math and 60 reading students pays about $6,080 a month before other fees.
  • Confirm which Item 7 subsidies apply to your situation. The furniture, signage, decorating and rent subsidies reflected in the table are generally not provided to franchisees taking over an existing Center.
5 more questions
  • Clarify how long the Temporary License Period is likely to last for you, since the higher royalty applies until cumulative enrollment of 600 math and 400 reading students and other requirements are met.
  • Ask how much time the Instructor Development Program actually takes before any revenue starts, given the roughly four-month first semester and the requirement to complete the second semester after opening.
  • Ask about the practical effect of having no territory: how close another Kumon Center may open, and how 'reasonable commutable distance' has been applied in the market you are considering.
  • Check the exit path: 270 days' notice to terminate voluntarily, an eight-month expected transfer approval timeline, a two-year bar on opening a new Center after selling, and liquidated damages for leaving early.
  • Verify what the registration-fee cap and any future tuition limit would mean for pricing, and whether Kumon has signalled plans to impose a tuition policy.

Economics: No calculator is offered because no annual average unit sales disclosed in Item 19. Model availability

Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.

Read the full research overview

A Kumon franchisee owns and personally teaches at an after-school Math and Reading Center. Students attend the Center or work through Kumon Connect, typically twice a week for 20-30 minutes per subject, and complete daily worksheet assignments at home. The Center must occupy at least 1,000 square feet of retail space on a lease of at least five years, and the franchisee must complete Kumon's Instructor Development Program before a franchise is awarded. Item 15 requires the individual franchisee, or an entity's designated Corporation Instructor, to instruct students personally, be present for all student sessions and devote full time to the business, so this is not a manager-run investment.

Item 7 puts the total initial investment at $101,630 to $233,780, of which $6,500 to $7,500 is paid to Kumon: a $1,000 training deposit credited against a $2,000 Initial Franchise Fee ($3,000 if the Center offers English as a Foreign Language), $2,000 for initial materials and $2,500 of pre-opening marketing. Leasehold improvements of $40,000 to $90,000 are the largest single item, and several lines are shown net of Kumon subsidies that are generally not offered to buyers of existing Centers. The royalty is not a percentage of sales: after the Temporary License Period it is $38 per month for each full-paying student in each of the math and reading Subject-Franchises ($42.75 during the TLP), plus a $30 royalty on each new enrollment. A required New Center Marketing Fee of $300 per month begins in month seven; local advertising of $4,800 a year is recommended but not required. Kumon may raise royalty rates on one year's notice without a contractual cap, and caps the registration fee a Center may charge.

There is no financial performance representation. Item 19 states plainly that Kumon makes no representations about future or past outlet performance, so this document says nothing about Center revenue, costs or owner earnings; a buyer of an existing Center may be given that Center's own records, and Exhibits C and D list current and departed franchisees to contact.

Item 20 shows a large, slowly growing system. Franchised Centers rose from 1,618 to 1,705 over 2023-2025, a net gain of 87 on 179 openings against 73 terminations, 9 non-renewals, 6 reacquisitions and 4 other closures, and Kumon projects 69 new franchised Centers in the next fiscal year with 8 agreements signed but not yet open. Company-owned Centers fell from 28 to 5, almost entirely through sales to franchisees. Transfers between franchisees ran at 64, 82 and 64 a year, roughly 4% of the system annually, which is high turnover of ownership for a system of this size. Items 3 and 4 disclose no litigation and no bankruptcy. The main contractual points to weigh are the absence of any exclusive territory, the full-time personal-instruction obligation, a five-year term, dispute resolution only in New Jersey with no arbitration clause, and a one-year, 20-mile post-term non-compete.

View ratings and their supporting evidence

Transparent ratings

How these are computed

Each dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.

System performance

How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.

System Growth 4 / 5
+5.4% franchised units, 2023–2025
Inputs
  • Franchised outlets 1618 → 1705 (Item 20, Table 3)
  • Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Unit Stability 5 / 5
1.9% average annual franchised attrition
Inputs
  • Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
  • Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Investment Efficiency Not rated
Not enough evidence to rate
Inputs
  • No annual average unit sales disclosed
Evidence & disclosure quality

How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.

Financial Disclosure Quality 1 / 5
No Item 19 financial performance representation
Inputs
  • Item 19 not present
Evidence Confidence High
10 of 12 key fields disclosed (83%). Document current. AI-assisted extraction independently machine-verified against the cited source document: 56 of 65 material fields confirmed (52 with the exact page cite re-confirmed); 1 corrected during verification.
Details
  • Missing: Item 19 present, Annual AUV
Labeled indicators (not scored)
Franchisor Track Record
Franchising 43 years (since 1983) · 1,710 outlets · Item 3: no litigation disclosed · Item 4: none disclosed
Multi-Unit Scalability
The FDD does not offer an area development or multi-unit agreement. It contemplates a franchisee being granted a second Center: an FBI criminal background ch… · Owner-operator required
Operational Intensity
Owner-operator required

Initial investment

FDD Items 5 and 7

Format shown: One Kumon Math and Reading Center in leased retail space (storefront, shopping center or mall), minimum 1,000 sq ft and a lease term of at least five years

$101,630–$233,780 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.

View full investment breakdown — Items 5 & 7
Initial franchise fee (the named Item 5 fee only)
$2,000 Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 5
Page
PDF p. 14
As of
2026-03-27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

The Initial Franchise Fee is $2,000.

Increases to $3,000 only if approved to add the elective 'English as a Foreign Language' subject (not standard terms). A $1,000 deposit paid earlier for the Training Kit is credited toward this $2,000 total for first-time franchisees, leaving $1,000 due at signing. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only.

Other required initial payments to the franchisor (Item 5)
  • Initial materials purchase: $2,000 — Mandatory purchase of instruction answer books, tests, and promotional material needed to operate the Center; also applies to a second Center or takeover.
  • Pre-opening marketing contribution: $2,500 — Lump-sum, non-refundable payment to fund advertising initiatives before the Center opens; remitted by Kumon to third-party vendors.
Total Item 5 payments to franchisor/affiliates
$6,500 Derived
Method
Derived by arithmetic from disclosed figures in 2026 Franchise Disclosure Document — Kumon North America, Inc..
Formula
initial franchise fee + 2 other mandatory Item 5 payment(s): Initial materials purchase + Pre-opening marketing contribution
Total initial investment — low
$101,630 Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 7 — Estimated Initial Investment — TOTAL row
Page
PDF p. 25
As of
2026-03-27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Line items foot exactly to the disclosed total.

Total initial investment — high
$233,780 Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 7 — Estimated Initial Investment — TOTAL row
Page
PDF p. 25
As of
2026-03-27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Line items foot exactly to the disclosed total.

Midpoint of range
$167,705 Derived
Method
Derived by arithmetic from disclosed figures.
Formula
(Item 7 low + Item 7 high) ÷ 2
Real estate purchase included?No — assumes a leased site
Additional funds assumed3 months
Required liquid capital
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

No minimum liquid-capital requirement appears on the cover page or in Items 1, 5, 7 or 11 of the reviewed FDD.

Required net worth
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

No minimum net-worth requirement appears in the reviewed FDD.

Assumes a leased retail Center of at least 1,000 square feet on a lease of at least five years; no real estate purchase is contemplated and Kumon does not act as lease guarantor. Additional funds cover the first three months of operation. Several line items are shown net of Kumon subsidies and reimbursements (furniture and fixtures, exterior signage, up to $5,500 of carpet/blinds/paint, and a rent subsidy of up to $1,000 per month for 12 months); the FDD states these subsidies are not provided to franchisees taking over an existing Center, so a takeover buyer's costs for those items would be higher than the table shows. Kumon does not finance any part of the initial investment.

Item 7 line items (19)

ExpenditureLowHigh
Training Agreement deposit fee — Paid at signing of the Training Agreement; refunded if training materials are returned after cancellation, otherwise credited to the Initial Franchise Fee.$1,000$1,000
Initial franchise fee (net of deposit credit) — Stated as $2,000 ($3,000 if the Center offers EFL) less the $1,000 deposit for a first Kumon Center.$1,000$2,000
Initial purchase of Kumon Materials — Answer books, achievement and placement tests, promotional material.$2,000$2,000
Pre-opening marketing spend — Collected by Kumon and remitted to third-party vendors.$2,500$2,500
Architect design$0$15,000
Leasehold improvements — Net of Kumon's reimbursement of up to $5,500 for initial carpet, blinds, shades and paint; the FDD states costs would be $45,500-$95,500 without it.$40,000$90,000
Security deposit, if required$0$30,000
Rent (3 months) — Net of a rent subsidy of 50% of monthly rent up to $1,000/month for the first 12 months; the FDD states three months' rent would be $12,000-$30,000 without it.$9,000$27,000
Furniture, equipment, signage and supplies — Net of items Kumon supplies or reimburses ($10,000 of furniture and fixtures, plus $4,800-$10,000 of exterior sign cost); the FDD states costs would be $23,800-$31,000 without them.$9,000$11,000
Notebook computers and tablets$2,000$4,000
Professional fees$1,000$5,000
Liability insurance — Annual rate for Kumon's package policy assuming 100 Math students.$580$580
Business license, name registration$100$200
Kumon Lead Management System — Purchase and installation of the VoIP/CRM system; Kumon reimburses the installation cost.$0$100
Recommended Reading List books — Approximately 378 titles across Levels 7A-L.$3,000$3,700
Fingerprinting and FBI criminal background check$50$100
Payroll cost for assistants (3 months)$11,000$14,000
SAM (sexual assault and molestation) prevention training — Certification required for the franchisee and employees at all times.$400$600
Additional funds (3 months)$19,000$25,000

Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Kumon North America, Inc. (table begins PDF p. 25) — rows inherit the table's citation rather than carrying fifteen identical ones.

Ongoing fees

FDD Item 6

Royalty

$38–$43/month Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 6 — Other Fees table — Royalty
Page
PDF p. 16
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Royalty is charged per enrolled student per subject per month, not as a percentage of sales. After the Temporary License Period (TLP) the rate is $38 per month for each full-paying student in each Subject-Franchise (math and reading are separate Subject-Franchises) and $19 for each partially exempt or prorated-tuition student. During the TLP the rates are $42.75 and $21.38. A separate initial enrollment royalty of $30 is due for each newly enrolled student. Kumon may change royalty rates on at least one year's notice, with no contractual cap; a franchisee who is unwilling to pay an increase may terminate. Underreporting enrollment can force a franchisee back to the higher TLP rate for three years.

Brand advertising fund

$300/month Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 6 — Other Fees table — New Center Marketing Fee and Advertising Contribution
Page
PDF p. 18
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

This is the required New Center Marketing Fee of $300 per month ($3,600 per year), payable from the seventh month after the Center opens or is taken over. Kumon collects it and remits it to a designated third-party digital advertising supplier; it is not a pooled national brand fund. Kumon separately contributes $3,600 of digital marketing for the Center allocated over the first 18 months. Kumon reserves the right to establish national and/or regional advertising funds and to reallocate required marketing spend into them.

Local marketing

Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

No minimum local advertising spend is currently required. Kumon recommends spending at least $4,800 per year on local advertising but states franchisees are not currently obliged to do so; the required marketing payment is the New Center Marketing Fee. Kumon may set a minimum in the Operations Manual.

Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.

View all recurring fees and conditions
Royalty
$38–$43/month Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 6 — Other Fees table — Royalty
Page
PDF p. 16
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Royalty is charged per enrolled student per subject per month, not as a percentage of sales. After the Temporary License Period (TLP) the rate is $38 per month for each full-paying student in each Subject-Franchise (math and reading are separate Subject-Franchises) and $19 for each partially exempt or prorated-tuition student. During the TLP the rates are $42.75 and $21.38. A separate initial enrollment royalty of $30 is due for each newly enrolled student. Kumon may change royalty rates on at least one year's notice, with no contractual cap; a franchisee who is unwilling to pay an increase may terminate. Underreporting enrollment can force a franchisee back to the higher TLP rate for three years.

Royalty is charged per enrolled student per subject per month, not as a percentage of sales. After the Temporary License Period (TLP) the rate is $38 per month for each full-paying student in each Subject-Franchise (math and reading are separate Subject-Franchises) and $19 for each partially exempt or prorated-tuition student. During the TLP the rates are $42.75 and $21.38. A separate initial enrollment royalty of $30 is due for each newly enrolled student. Kumon may change royalty rates on at least one year's notice, with no contractual cap; a franchisee who is unwilling to pay an increase may terminate. Underreporting enrollment can force a franchisee back to the higher TLP rate for three years.
Advertising / brand fund
$300/month Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 6 — Other Fees table — New Center Marketing Fee and Advertising Contribution
Page
PDF p. 18
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

This is the required New Center Marketing Fee of $300 per month ($3,600 per year), payable from the seventh month after the Center opens or is taken over. Kumon collects it and remits it to a designated third-party digital advertising supplier; it is not a pooled national brand fund. Kumon separately contributes $3,600 of digital marketing for the Center allocated over the first 18 months. Kumon reserves the right to establish national and/or regional advertising funds and to reallocate required marketing spend into them.

This is the required New Center Marketing Fee of $300 per month ($3,600 per year), payable from the seventh month after the Center opens or is taken over. Kumon collects it and remits it to a designated third-party digital advertising supplier; it is not a pooled national brand fund. Kumon separately contributes $3,600 of digital marketing for the Center allocated over the first 18 months. Kumon reserves the right to establish national and/or regional advertising funds and to reallocate required marketing spend into them.
Required local marketing
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

No minimum local advertising spend is currently required. Kumon recommends spending at least $4,800 per year on local advertising but states franchisees are not currently obliged to do so; the required marketing payment is the New Center Marketing Fee. Kumon may set a minimum in the Operations Manual.

Technology / software
$50/month Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 7 — Item 7 Note 6 — Kumon Lead Management System
Page
PDF p. 27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Vendor estimate of monthly cost for the Kumon Lead Management System (a required VoIP telephone and CRM package from the designated vendor, Vonage), plus applicable taxes. It is paid to the vendor, not to Kumon, and the FDD states Kumon earns no commission or revenue from it. Kumon's Online Scheduler and CRM platforms are provided at no cost, and Kumon supplies Kumon Materials at no additional charge beyond shipping.

Vendor estimate of monthly cost for the Kumon Lead Management System (a required VoIP telephone and CRM package from the designated vendor, Vonage), plus applicable taxes. It is paid to the vendor, not to Kumon, and the FDD states Kumon earns no commission or revenue from it. Kumon's Online Scheduler and CRM platforms are provided at no cost, and Kumon supplies Kumon Materials at no additional charge beyond shipping.
Transfer fee
$2,000–$3,000 one-time Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — Transfer of entire business — final approval
Page
PDF p. 53
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Item 6 lists no transfer fee payable by the selling franchisee. On final approval of a transfer the incoming transferee pays Kumon a new Initial Franchise Fee of $2,000 ($3,000 if the Center offers EFL) plus a $2,000 materials fee, and must complete the Instructor Development Program; Kumon expects final approval will usually come about eight months after tentative approval.

Item 6 lists no transfer fee payable by the selling franchisee. On final approval of a transfer the incoming transferee pays Kumon a new Initial Franchise Fee of $2,000 ($3,000 if the Center offers EFL) plus a $2,000 materials fee, and must complete the Instructor Development Program; Kumon expects final approval will usually come about eight months after tentative approval.
Renewal fee
Not disclosed in the reviewed source Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

Item 17 sets out renewal conditions (notice, background checks, compliance, at least 50 Professional Development Credits, a general release and signing the then-current Franchise Agreement) but the reviewed FDD does not disclose a renewal fee.

Royalty + ad fund (% of sales)
Not disclosed as percent of sales Not disclosed

Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Kumon North America, Inc.; we do not fill gaps with estimates or third-party figures.

Fee schedule (18 fees; 18 verified against the source, 0 single-pass)

Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.

FeeAmountFrequencyMandatoryVerificationCiteNotes
Royalty (monthly, per Subject-Franchise) Tiered (base 38%) monthly Yes verified (tie-break) Item 6, p. 16 The lower post-TLP rate takes effect the next full reporting month after the TLP requirements for that Subject-Franchise are met; the franchisee reverts to the TLP rate for at least one year for failing the Ongoing Training and Performance Requirements and for three years if enrollment is underreported. Kumon may change rates on at least one year's notice, with no contractual cap. One entry covering both royalty states; Pass B's separate TLP entry is folded in as the high tier and range_high so the two states cannot be double counted.
Initial Enrollment Royalty Fee $30 per event Yes verified (tie-break) Item 6, p. 16 Charged again if a student re-registers after being absent more than one reporting period; not charged when a student already enrolled in one Subject-Franchise registers for a second. Frequency recorded as per_event because the charge attaches to each enrollment; the amounts are aggregated and billed monthly.
Administrative Fee for Late Payment 1.5% of other monthly No verified (tie-break) Item 6, p. 16 Charged each month until the past-due amount is paid or a promissory note is signed; amount is changeable at Kumon's discretion through the Operations Manual (Note 3). Pass B's percent encoding is kept: the printed amount is a stated rate (1.5%) with a $75 floor, so value should not be null.
Late or Inaccurate Report Fee Tiered (base $200) monthly No verified (2-pass) Item 6, p. 16 Applies only on failure to submit a complete/accurate monthly report on time; Kumon also estimates royalty at the last report plus 10% if a report is missed entirely.
Insufficient Funds Fee $25 per event No verified (2-pass) Item 6, p. 17 Only charged when an EFT debit attempt fails for insufficient funds.
Kumon-Sponsored Insurance Program $6 annual No verified (2-pass) Item 6, p. 17 Optional -- only charged if the franchisee elects to participate in Kumon's insurance carrier program rather than obtaining independent liability coverage meeting Kumon's minimums.
Indemnification Not stated varies Conditional verified (2-pass) Item 6, p. 17 Contingent on a covered claim/liability arising from the franchisee's operation of the Center; no dollar amount is set in the FDD. Item 6 table row has no stated Amount/Due Date -- text of Note 5 is the only content.
Shipping Costs for Materials $50 monthly Yes verified (tie-break) Item 6, p. 22 Kumon Materials (Placement Tests, Achievement Tests, Worksheets, Record Books, Progress Charts) are supplied at no charge but shipping is billed to the monthly statement. Kumon may increase freight costs on at least 30 days' notice. Page corrected to 22: the $50 figure appears only in Item 6 Note 6, not in the table row on page 17 that both passes cited.
Relocation Fee $2,000 per event No verified (2-pass) Item 6, p. 17 Charged under current policy only if fewer than 80% of enrolled students transfer to the new location.
Payments for "Chargeable Items" Purchased from Kumon Not stated varies No verified (tie-break) Item 6, p. 17 Optional supplemental teaching materials and promotional items for use or sale; Kumon may discontinue them or change prices without notice.
Liquidated Damages Not stated per event No verified (tie-break) Item 6, p. 18 Applies to voluntary termination without the advance notice required by Section 14.4, a proposed transfer where the candidate is not approved and the franchisee does not resume operating, or automatic termination under Section 14.3. Kumon may waive it if the reasons are justified (Note 8).
Temporary Transfer to Us (interim management fee) $10 monthly No verified (tie-break) Item 6, p. 18 Arises only if Kumon takes over interim operation of the Center - franchisee absence without acceptable arrangements, a charge involving a crime against children or moral turpitude, or conduct capable of creating a brand crisis (Note 9).
New Center Marketing Fee $300 monthly Yes verified (2-pass) Item 6, p. 18 Corresponds to record /fees/ad_fund.
Advertising Contribution (Local) Not stated annual No verified (2-pass) Item 6, p. 18 Recommended, not mandatory, as of the FDD's issuance date. Corresponds to record /fees/local_marketing.
Audit Fees and Expenses Not stated per event No verified (2-pass) Item 6, p. 19 Only arises if a Kumon audit discovers underreported, unreported, or misrepresented enrollment.
Kumon Lead Management System (VoIP/CRM) $50 monthly Yes verified (2-pass) Item 7, p. 27 Mandatory system for routing parent calls/scheduling; paid to the vendor, not to Kumon -- 'Kumon earns no commission or any revenue from your purchase or use of the System.' Corresponds to record /fees/technology.
Microsoft Office365 Subscription Not stated varies Yes verified (tie-break) Item 7, p. 27 Mandatory third-party subscription; no standalone dollar figure disclosed anywhere in the FDD. Item 7 Note 4's cross-reference to 'Note 10' is a source typo - additional funds are described in Note 11; Note 10 is SAM training.
SAM (Sexual Assault and Molestation) Prevention Training $400–$600 varies Yes verified (tie-break) Item 7, p. 25 Item 7 Note 10 requires the franchisee and employees to be certified 'at all times during the operation of the Center', which implies recertification and certification of new hires, but the FDD states no recurring amount or interval. Amount verified in the Item 7 table on page 25 ($400-$600, before opening, paid to vendors).

Kumon's fee structure is unusual for a franchise system: the royalty is a flat dollar amount per enrolled student per subject per month rather than a percentage of gross sales, so total royalty scales with enrollment rather than with tuition pricing. Kumon caps the registration fee a Center may charge (currently $80) and reserves the right, on 60 days' notice, to impose tuition limits; no tuition cap is currently in force. Kumon supplies ongoing Kumon Materials at no charge beyond shipping, which the FDD says is covered by the royalty. No advertising cooperative and no purchasing or distribution cooperative exist in the system.

Financial performance (Item 19)

What the franchisor actually disclosed

No financial performance representation. The 2026 FDD does not disclose sales, costs or profits for any outlet (Item 19). Any revenue or profit figure you see for Kumon elsewhere did not come from the franchisor’s disclosure document. We do not estimate an AUV where none is disclosed. There is no financial performance representation. A prospective franchisee cannot learn from this document what a Kumon Center collects in tuition, what it costs to run, or what an owner earns. The only quantitative anchors the FDD offers are inputs rather than outcomes: the estimated initial investment in Item 7, the per-student royalty in Item 6, the $80 registration-fee cap in Item 1, and Item 8's disclosure that Kumon's total revenue was $153,926,604 in fiscal 2025 across a system of roughly 1,700 franchised Centers. Anyone evaluating the economics would need to obtain figures directly from existing and former franchisees, whose contact details are listed in Exhibits C and D.

Read: What Item 19 actually tells you.

System health (Item 20)

Outlets, openings, exits and transfers by fiscal year · U.S. only
03365 2023: 52 opened 2023: 33 exits 2023 2024: 65 opened 2024: 31 exits 2024 2025: 62 opened 2025: 28 exits 2025 1,637 1,671 1,705 franchised year-end opened / exits
OpenedExits (terminations, non-renewals, reacquired, ceased-other)Franchised outlets at year end
Openings (2023–2025)
179
Exits
92
73 terminated · 9 not renewed · 6 reacquired · 4 other
Transfers
210
resales between franchisees
Avg. annual attrition
1.9%
Derived exits ÷ start-of-year units
Projected openings next FY
69
Disclosed · 8 signed, not open
Franchised share
1%
Derived
View detailed Item 20 tables and source notes
Item 20 Table 3 — status of franchised outlets
Fiscal yearStartOpenedTerminatedNot renewedReacquiredCeased — otherEndTransfersCompany-owned (end)
20231,61852300211,6376422
20241,63765204431,6718218
20251,67162235001,705645

Disclosed 2026 Franchise Disclosure Document — Kumon North America, Inc., Item 20, Tables 1–3 (PDF p. 55). All Item 20 counts are stated as of December 31 of each year, and where multiple events affected a Center the table shows the last event in time. Every table foots: Table No. 3 reconciles for all three years, and Table No. 1's 2025 totals (1,705 franchised plus 5 company-owned) equal the reported 1,710 outlets. Franchised Centers grew by 87 over the three years (1,618 to 1,705) on 179 openings against 73 terminations, 9 non-renewals, 6 reacquisitions and 4 other closures. The company-owned estate shrank from 28 to 5, driven almost entirely by sales to franchisees (30 over three years) rather than closures (3). Transfers between franchisees are heavy relative to system size at 64, 82 and 64 per year, roughly 4% of franchised Centers annually. An independent franchisee association, the International Association of Kumon Franchisees, asked to be listed in the FDD.

Source data notes (11) — inconsistencies found in the FDD itself during verification

Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.

  • [D/minor] Table No. 3: Pass B: all three TOTAL rows of Table No. 3 foot exactly and carry forward correctly. — Re-verified on page 63: 1618+52-30-0-2-1=1637; 1637+65-20-4-4-3=1671; 1671+62-23-5-0-0=1705, and each year's start equals the prior year's end. Confirmation, not a defect.
  • [D/minor] Table No. 1: Pass B: Table No. 1 reconciles with Tables 3 and 4 in every year and the net-change column is arithmetically correct. — Re-verified on page 55 against pages 63 and 65: 1637+22=1659, 1671+18=1689, 1705+5=1710; net changes +19/+34/+34 franchised and -6/-4/-13 company-owned are correct. No discrepancy.
  • [D/minor] Table No. 3 / Table No. 4: Pass B: Table No. 3 'Reacquired by Kumon' matches Table No. 4 'Outlets Reacquired from Franchisees' in all three years (2, 4, 0). — Confirmed: Table 3 TOTAL row (page 63) shows 2/4/0 and Table 4 Totals row (page 65) shows 2/4/0. The two tables agree.
  • [D/minor] Table No. 2: Pass B: Table No. 2 state entries sum exactly to the printed totals (64, 82, 64); transfer volume is high relative to system size (about 3.8% of franchised Centers in 2025). — Printed totals confirmed on page 59 (2023 64, 2024 82, 2025 64). The high transfer rate is a real characteristic of the system, not a data problem.
  • [D/minor] Table No. 3 / Table No. 4 2025: Pass B: Table No. 3 has no column for outlets acquired from the franchisor, yet Table No. 4 shows 9, 9 and 12 company Centers sold to franchisees in 2023-2025, so those conversions must sit inside Table 3's 'Centers Opened' figures (52, 65, 62). — Legitimate table-definition difference, not an error: the FTC Table 3 format has no 'acquired from franchisor' column, so company-to-franchisee conversions are reported as franchised openings. Both tables foot and both agree with Table No. 1 and with Item 1 (5 company-owned, 1,705 franchised), so the totals are corroborated. The practical effect is that franchised openings overstate new-build activity by up to 12 units in 2025 (62 reported openings, at least 50 of them new builds).
  • [D/minor] Table No. 4 / Table No. 5: Pass B: company-owned Centers fell 28 to 22 to 18 to 5, almost entirely through sales to franchisees (9, 9, 12) rather than closures (1 a year), and Table No. 5 projects zero new company-owned outlets. — Verified on pages 65 and 66: Table 4 totals foot (28+2+2-1-9=22; 22+2+4-1-9=18; 18+0+0-1-12=5) and Table 5's company column is zero throughout. A real strategic trend, correctly disclosed; no numeric issue.
  • [D/minor] Table No. 5 2025: Pass B: Table No. 5 projects 69 new franchised outlets against 62 actually opened in 2025 and only 8 agreements signed but not yet open. — Total row confirmed (8 signed but not open, 69 projected franchised, 0 projected company-owned, Table No. 5, pages 65-66). A forward-looking estimate is not an inconsistency with the historical tables; note only that the projection exceeds the most recent actual by about 11% with a thin signed backlog.
  • [D/minor] Table No. 3 2025: Pass B: 2025 shows a mix shift in exits - terminations 23 and non-renewals 5, with reacquisitions and 'ceased for other reasons' both zero. — Confirmed from the 2025 TOTAL row on page 63 (1671, 62, 23, 5, 0, 0, 1705). The row foots, so the mix shift is a real disclosure, not a footing problem; total 2025 franchised attrition is 28 units.
  • [C/minor] Table No. 1 2025: Pass B: Table No. 1 is captioned 'System-wide Outlet Summary' but every supporting table covers only U.S. states plus the District of Columbia, while Item 1 reports the same counts under the label 'in North America'. — The two printed statements label the same numbers differently. Item 1 (page 10): 'in North America, ... we operated 5 company-owned Kumon Centers, and there were 1,705 franchised Kumon Centers'; Table No. 1 (page 55) is headed 'System-wide Outlet Summary' and its supporting Tables 2-5 list only U.S. states and D.C. Since Kumon Canada and Kumon Mexico franchise separately (Item 1, page 9), the figures are U.S.-only and Item 1's 'North America' wording is loose. The TOTAL itself (1,705 franchised, 5 company-owned) is corroborated by both places, so the counts stand; only the geographic label is wrong.
  • [D/minor] Table No. 3 2023: Pass B: largest single-state contraction is New York 2023 (107 start, 0 opened, 8 terminations, 1 reacquisition, 98 end), with Colorado 2025 and Montana 2025 the other declines. — New York row verified on page 63: 107+0-8-0-1-0=98, and 2024/2025 carry forward (98, then 98+5-0-1=102). The state rows foot; this is an observation about system mix, not an error.
  • [D/minor] Table No. 3 / Table No. 5 2024: Pass B: a stray '.' appears under the state name in the Michigan 2024 row of Table No. 3, and Table No. 5 abbreviates state names ('N. Carolina', 'S. Dakota') that Table No. 3 spells out. — Typography only. The Michigan rows still foot (2023 45+3-3=45; 2024 45+3-0-1-2=45; 2025 45+2-1=46), and the abbreviations name the same states. No numeric impact on any derived metric.
Company-owned outlets (Table 4)
YearStartOpenedReacquired from franchiseeClosedSold to franchiseeEnd
202328221922
202422241918
202518001125

Read: How to read Item 20.

Ownership and operations

Items 11, 12, 15, 17
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 15 — Obligation to participate in the actual operation
Page
PDF p. 47
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

If you are an individual, you must instruct the students personally.

An individual franchisee must instruct students personally, be present at the Center during all student sessions except in extraordinary personal circumstances, and devote full time to the franchise; outside employment or other business interests need Kumon's prior written approval. Assistants may instruct only under the franchisee's supervision unless Kumon grants an exception. A corporate or LLC franchisee must designate a Kumon-approved "Corporation Instructor" who carries the same personal and full-time obligations and must own at least 51% of the entity with power to direct its affairs. Kumon does not grant franchises to partnerships.

. Read the supervision, training and territory conditions before assuming passive ownership.

Risk and legal observations ↓

View operating requirements, territory and contract term
Owner involvement (Item 15)
Owner-operator required Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 15 — Obligation to participate in the actual operation
Page
PDF p. 47
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

If you are an individual, you must instruct the students personally.

An individual franchisee must instruct students personally, be present at the Center during all student sessions except in extraordinary personal circumstances, and devote full time to the franchise; outside employment or other business interests need Kumon's prior written approval. Assistants may instruct only under the franchisee's supervision unless Kumon grants an exception. A corporate or LLC franchisee must designate a Kumon-approved "Corporation Instructor" who carries the same personal and full-time obligations and must own at least 51% of the entity with power to direct its affairs. Kumon does not grant franchises to partnerships.

An individual franchisee must instruct students personally, be present at the Center during all student sessions except in extraordinary personal circumstances, and devote full time to the franchise; outside employment or other business interests need Kumon's prior written approval. Assistants may instruct only under the franchisee's supervision unless Kumon grants an exception. A corporate or LLC franchisee must designate a Kumon-approved "Corporation Instructor" who carries the same personal and full-time obligations and must own at least 51% of the entity with power to direct its affairs. Kumon does not grant franchises to partnerships.
Initial training
Initial training is the Instructor Development Program, run under Kumon University and completed before a franchise is awarded and a Center opens. It has two semesters of two courses each. The first semester is estimated to take about four months and must be completed to Kumon's satisfaction to be offered a franchise; it combines pre-training reading and online modules (roughly 24-32 hours of self-study including a business plan), Course 101 and Course 201 at four days of classroom training each delivered online or from home, about 26 hours of further self-study, 61 hours of curriculum study for new-Center franchisees (94 hours for those taking over an existing Center), and in-Center training at a designated Kumon Center of about 40 hours over one week plus two days outside operating hours. Discovery Day, held at a Kumon branch office on the day the Franchise Agreement is signed, takes one day. The second semester is Course 301 (three classroom days, a minimum of three months after opening and after 10 subject enrolments) and Course 401 (four classroom days, about six months after Course 301), each with roughly 45-50 hours of self-study. Centers offering EFL complete additional curriculum study and 32 hours of in-Center training. Failure to complete the second semester terminates the Franchise Agreement. Ongoing training continues for the term of the franchise. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 11 — Training and Training Program tables
Page
PDF p. 33
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

The person who must attend is the individual franchisee or, for an entity, the designated Corporation Instructor.

Multi-unit / development options
The FDD does not offer an area development or multi-unit agreement. It contemplates a franchisee being granted a second Center: an FBI criminal background check is required to open a second Center or take over an existing one, the $2,000 materials fee applies again to a second Center, and a franchisee buying another franchisee's Center must meet Kumon's requirements for a second Center, be free of default and have a good record of student service and compliance. A franchisee who sells a Center may be barred, at Kumon's discretion, from opening a new Center for at least two years. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 1 — Application and approval procedures; see also Items 5 and 17
Page
PDF p. 11
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Territory (Item 12)
No exclusive or protected territory is granted. Kumon and its affiliates may open and franchise other Centers anywhere, operate company-owned Centers, and sell through alternative channels including the internet, catalogue, telemarketing and direct marketing, regardless of proximity to a franchisee's Center. The franchisee may operate only at the Kumon-approved site and needs written consent to relocate, with a $2,000 relocation fee applied under current policy if fewer than 80% of enrolled students move to the new site. Kumon imposes no geographic limit on soliciting students, but a franchisee may not enrol anyone living beyond a reasonable commutable distance from the Center (Kumon decides case by case), may not target advertising near another Kumon Center or solicit another Center's students, and may not enrol students residing outside the United States. Online students who move within the U.S. may stay enrolled; in-Center and hybrid students must transfer. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 12 — Territory
Page
PDF p. 44
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

You will not receive an exclusive territory within the Kumon franchise organization

No minimum performance condition attaches to territory rights because no territory is granted.

Initial term
5 years Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — a. Length of the franchise term
Page
PDF p. 49
As of
2026-03-27
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Renewal
Renewal is for successive five-year terms if the franchisee is in good standing and meets Kumon's requirements: timely notice; new background and FBI fingerprint checks; full compliance with the Franchise Agreement; no more than one written notice of default in any calendar year; compliance with the Kumon Method; satisfactory Center communication and management skills; adequate proficiency in hybrid and online instruction if offered; at least the minimum Professional Development Credits set in the Operations Manual (currently 50); and a general release. The renewing franchisee must sign Kumon's then-current form of Franchise Agreement, which may contain materially different terms. No renewal fee is disclosed. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — b. and c. Renewal or extension of the term
Page
PDF p. 49
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Staffing
The Center must give students the opportunity to attend for at least the minimum Center hours in the Operations Manual, currently four Center sessions per week totalling 14 hours, with no session shorter than three hours. Existing franchisees renewing under the Veteran Instructor Addendum must hold at least two sessions per week of at least four hours each, though four days is strongly recommended. Item 7 budgets $11,000 to $14,000 of assistant payroll for the first three months. Assistants are hired, trained and supervised by the franchisee, must pass a criminal background check if 18 or older, and must be SAM-prevention certified. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 11 — Center hours; see also Items 7 and 15
Page
PDF p. 40
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Risk and legal observations

Items 3, 4, 8, 15, 17 — summarized neutrally

Litigation: None disclosed Disclosed · Bankruptcy: None disclosed Disclosed

View legal disclosures, restrictions and guarantees
Litigation (Item 3)None disclosed Disclosed
Item 3 states that no litigation is required to be disclosed. No pending or concluded matters involving the franchisor or its management are listed in the reviewed FDD.
Bankruptcy (Item 4)None disclosed Disclosed
Item 4 states that no bankruptcy is required to be disclosed.
Personal guaranty
Required Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 15 — Corporation/LLC
Page
PDF p. 47
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500

Where the franchise is held by a corporation or LLC, the Corporation Instructor and all other owners must sign a Personal Guarantee of the entity's obligations to Kumon and a Confidentiality and Non-Competition Agreement. Item 17 repeats the requirement for entity transferees. An individual franchisee signs in their own name and is directly liable.

Non-compete
During the term, neither the franchisee nor their spouse may be involved in a Competing Business without Kumon's prior written consent, and may not do so indirectly through another person or entity. A Competing Business is any business offering academic instruction, self-guided instruction, tutoring, test preparation or other supplemental educational services to children in high school or younger that Kumon deems competitive, whether delivered in person, by telephone or online. After termination or expiry the restriction runs for one year within 20 miles of the former Center or any other Kumon Center. For two years after termination the franchisee may not contact Kumon students to enrol them in another supplemental education programme. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — q. and r. Non-competition covenants
Page
PDF p. 54
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Transfer restrictions
No transfer may occur without Kumon's consent, and the process runs in two stages. For tentative approval the franchisee must have been a Kumon franchisee for at least two years, submit a Transfer Proposal Form and be in compliance with all obligations. Final approval requires the transferee to satisfy all franchisee qualification requirements including completing the Instructor Development Program, sign the then-current Franchise Agreement, arrange Center upgrades, and pay a new Initial Franchise Fee of $2,000 ($3,000 with EFL) plus a $2,000 materials fee; entity transferees must have their owners execute the Guarantee. The selling franchisee must sign a general release, obtain the landlord's written agreement to assign the lease, and repay any promissory note owed to Kumon. Kumon expects final approval will usually take about eight months after tentative approval, and the outgoing and incoming franchisees must work together at the Center beforehand. Leaving the business before final approval, or failing to resume operating after a candidate is rejected, triggers liquidated damages of three times average monthly royalty. Kumon has no right of first refusal and no option to purchase the business. A seller may be barred, at Kumon's discretion, from opening a new Center for two years. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — k. to o. Transfer provisions
Page
PDF p. 52
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Termination / non-renewal
Kumon may not terminate without cause. Curable defaults carry a 30-day cure period. Non-curable defaults include underreporting, failing to report or misrepresenting enrolled students; failing to open within six months; abandonment; being charged with a crime against children or involving moral turpitude, or conduct capable of creating a crisis or immediate substantive damage to the Kumon brand; being charged with or convicted of a felony; unauthorised relocation or transfer; intellectual property piracy; repeated defaults even if cured; absence from the Center without prior written notice or adequate arrangements; appointment of a trustee or receiver; material misrepresentation in the franchise application; denying Kumon audit or inspection access; and unsatisfactory background check results. Kumon may also terminate if it terminates any other Franchise Agreement with the same franchisee for default. A franchisee may terminate at any time on at least 270 days' written notice; giving less notice triggers liquidated damages of three times the average monthly royalty for the prior three months. On termination the franchisee must fully de-identify the Center, hand over student records and databases, assign the telephone number and online presence to Kumon, and reimburse Kumon for removing the exterior sign. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — d. to i. Termination provisions
Page
PDF p. 50
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Supplier restrictions (Item 8)
Only Kumon's proprietary Kumon Materials may be used at the Center, and they must be obtained from Kumon; beyond the $2,000 initial purchase they are supplied at no additional charge, with the franchisee paying shipping (currently $50 or actual ground cost, whichever is less, for the initial monthly order). Optional "Chargeable Items" such as extra answer books, solution manuals and awards must be bought from Kumon if bought at all. Designated vendors must be used for two categories: Vonage for the Kumon Lead Management System and School Outfitters for Center furniture. Amazon, Barnes & Noble, Verified Credentials and Staples are listed as optional vendors. Kumon must approve the site and the Center must meet Kumon's design requirements. Kumon reported receiving $1,050,507 from franchisees for Chargeable Items in fiscal 2025, 0.7% of its total revenue of $153,926,604, and $714,670 for liability insurance (against $900,400 paid out), about 0.6% of revenue; it reported no revenue from franchisee furniture purchases and no vendor rebates in 2025. Kumon estimates purchases from Kumon or to its specifications at about 1% of total purchases in establishing a Center and about 2% of ongoing purchases. There are no purchasing or distribution cooperatives and no supplier approval process. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 8 — Restrictions on sources of products and services
Page
PDF p. 29
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Dispute resolution
The Franchise Agreement contains no arbitration or mediation provision. Subject to state law, the franchisee must sue Kumon where Kumon then has its corporate headquarters, currently Rutherford, New Jersey, while Kumon must sue the franchisee in the state where the Center is located. New Jersey law applies, subject to state law. The FDD's state-mandated risk factors highlight that disputes must be resolved in New Jersey and that out-of-state proceedings may cost more and may lead to a less favourable settlement. Disclosed
Source
2026 Franchise Disclosure Document — Kumon North America, Inc.
Document
FDD 2026, issued 2026-03-27
Item
Item 17 — u. to w. Dispute resolution, choice of forum and law
Page
PDF p. 54
Obtained
Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640500
Other observations
  • Royalty rates may be changed by Kumon on at least one year's notice with no contractual limit on the increase; the franchisee's remedy is to terminate. This is highlighted as a state-mandated risk factor on the cover.
  • No exclusive territory is granted, and Kumon may open company-owned or franchised Centers and sell through online and other channels without regard to a franchisee's location.
  • The franchisee must instruct personally and devote full time to the business, so the model is not passive or manager-run and outside employment requires Kumon's written approval.
  • Kumon caps the registration fee a Center may charge (currently $80) and reserves the right, on 60 days' notice, to limit tuition, which constrains a franchisee's pricing.
  • Royalties are charged per enrolled student per subject, so the royalty burden rises with enrollment regardless of the tuition actually collected, and it is higher during the Temporary License Period until performance requirements including cumulative enrollment of 600 math and 400 reading students are met.
  • Voluntary exit requires 270 days' written notice; shorter notice triggers liquidated damages of three times average monthly royalty.
  • Kumon may take over operation of a Center and charge a management fee if the franchisee is absent without adequate arrangements, is charged with a crime against children or involving moral turpitude, or creates a reputational crisis.
  • Underreporting enrollment is a non-curable default and can also trigger audit costs, repayment of subsidies and three years at the higher TLP royalty rate.
  • Item 7 amounts are shown net of Kumon subsidies (furniture, signage, carpet and paint reimbursement, and a rent subsidy); those subsidies are generally not available to franchisees taking over an existing Center.

Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.

Illustrative unit economics

Not disclosed

No model is offered for Kumon because no annual average unit sales disclosed in Item 19. We do not manufacture estimates where the disclosure does not support them.

Sources and provenance

Primary source: 2026 Franchise Disclosure Document — Kumon North America, Inc. · issued 2026-03-27. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.

View all sources, provenance and verification notes
DocumentObtained fromDatesStatus
2026 Franchise Disclosure Document — Kumon North America, Inc.
Registry file 640500 · 235 pages
Registered in Wisconsin with a registration effective date of 3/27/2026; issuance date on the cover is March 27, 2026. This is the most recent Kumon FDD available from the reviewed registry.
Wisconsin Department of Financial Institutions — Franchise Registration SearchIssued 2026-03-27
Retrieved 2026-08-29
Newest available at retrieval
Extraction record

AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-03. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 56 of 65 material fields confirmed (52 with the exact page citation re-confirmed), 1 corrected, 0 unresolved, 9 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.

Fields flagged as uncertain (4)
  • franchisor.business_since — Item 1 gives several possible start dates: Kumon North America, Inc. was incorporated December 4, 1989; its predecessors offered Kumon franchises in the U.S. from March 1983; the Japan regional headquarters has conducted a similar business since 1958; and Toru Kumon developed the method in 1954. 1983 is recorded as the earliest U.S. operation of the concept by the franchisor or a predecessor.
  • fees.royalty.unit — recorded as usd_month because the royalty is a flat dollar amount per enrolled student per subject per month rather than a percentage of sales. The per-unit royalty depends entirely on enrollment and cannot be expressed as a single monthly figure per Center.
  • fees.ad_fund — Kumon operates no national or regional advertising fund today. The recorded $300 per month is the mandatory New Center Marketing Fee, which Kumon collects and remits to a designated third-party digital advertising supplier; Kumon reserves the right to create funds later.
  • fees.technology — the $50 per month is the vendor's estimate for the required Kumon Lead Management System, paid to Vonage rather than to Kumon; Kumon's own software is supplied at no charge.
Extraction notes (8)
  • Item 19 contains no financial performance representation, so headline_auv, headline_median, annualized_auv and all Item 19 metrics are null or empty. No sales, cost or profit figure appears anywhere in the reviewed FDD.
  • investment.franchise_fee_low/high is the sum of the mandatory initial payments to Kumon rather than the $2,000 Initial Franchise Fee line alone, per the extraction rule on splitting mandatory components. The franchisor states the same $6,500-$7,500 range on the cover page, and Item 7 line items foot exactly to the disclosed totals of $101,630 and $233,780.
  • Validator warning on fees.local_marketing: the value is null with evidence 'disclosed' rather than 'not_disclosed' because the FDD is not silent. Item 6 expressly states that franchisees are not currently required to spend anything on local advertising and that $4,800 a year is only a recommendation, so no required amount exists to record.
  • All Item 20 tables reconcile. Table No. 3 totals foot for 2023, 2024 and 2025, Table No. 4 totals foot for all three years, and Table No. 1's 2025 figures (1,705 franchised plus 5 company-owned) equal the stated 1,710 outlets.
  • Item 20 counts are treated as U.S. only: Tables No. 2 to No. 5 are broken out by U.S. state and total to Table No. 1. Item 1 describes the same 1,705 franchised and 5 company-owned figures as 'in North America', but Kumon Canada and Kumon Mexico are separate subsidiaries that franchise in their own countries.
  • No liquidity or net-worth requirement is disclosed on the cover or in Items 1, 5, 7 or 11, and no renewal fee is disclosed in Item 17.
  • The FDD covers one concept only. Variations noted but not given separate Item 7 tables are Centers offering English as a Foreign Language (higher Initial Franchise Fee and extra training) and Centers Kumon designates as 'non-traditional market' locations, which may be excused from some operating requirements.
  • Verification 2026-09-02: correct /franchisor/franchising_since 1994 → 1983

We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.

Franchisor
Kumon North America, Inc.
Parent: Kumon Institute of Education Company, Ltd. ("KIE"), a Japanese corporation based in Osaka, Japan; Kumon North America is KIE's North American regional headquarters
HQ: Rutherford, NJ
In business since 1983 · franchising since 1983

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