Profitability of a Kumon franchise depends on the number of students and operating expenses. Using the recommended student tuition of $75 per month and the $30 registration fee per student, and assuming at least 50 students by the end of the first year of operation, the monthly revenue would be $3,750. One of the numerous Kumon franchisees reportedly earns more than $12,000 per month, according to Entrepreneur.
Candidates for a Kumon franchise must pass a proficiency examination. They are granted a temporary licence training period (TLP) for the first 12 months after passing the test. During the TLP, a royalty fee of $31.50 per student per month must be paid; this fee will decrease to $28 per student per month following the conclusion of the TLP. During the first 36 months of operation, Kumon will provide up to 12 months of rent assistance. After paying the initial costs, testing expenses, and increased royalty payments throughout the TLP phase, a Kumon franchise has shown to be profitable. By keeping a large number of students, the earning potential is likely to be greater than that of a teacher.
