Mathnasium Franchise Analysis 2026

What is Mathnasium?

Founded in 2002, Mathnasium operates 1,000 US locations specializing in after-school math tutoring using proprietary assessment and teaching methods. The franchise has grown rapidly by addressing the math proficiency gap and offering franchisees a recession-resistant education service business.

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Investment & Fee Data

Investment Overview

Franchise Fee$49K

Total Investment$113K – $150K

Royalty Rate10.0%

Ad/Marketing Fund2.0%

Total Fee Burden12.0%

System Size & Growth

US Locations1,000

Unit Growth Rate+8.0%

Founded2002

Franchising Since2003

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$344K

Owner Earnings$65K

SBA Default RateN/A

5-Year Survival90%

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💡 What This Means For You

The combined fee burden of 12.0% is above the industry average of 8-10%, which means a larger share of your revenue goes to the franchisor before you see any profit. Beyond the listed investment, expect approximately $117K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $248K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$344K

Net Profit Margin22%

Est. Owner Earnings$65K

Breakeven12-18 months

Payback Period3-5 years

Capital Requirements & Operations

Liquid Capital Required$100K

Net Worth Required$200K

Staff Required5-10

Training4 weeks

TerritoryDesignated area

Multi-Unit RequiredNo

Term Length10 years

Risk & SBA Safety Data

SBA Default RateNo Data

5-Year Survival90%

Renewal FeeVaries

Transfer FeeVaries

💡 Financial Analysis

A revenue-to-investment ratio of 2.6x is solid and in line with industry norms. At estimated owner earnings of $65K/year, the simple payback period is approximately 2.0 years. A net margin of 22% is strong for a franchise — this means the business retains a healthy share of revenue as profit.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$50K

Legal & Accounting$15K

Insurance (Annual)$15K

Tech/Software (Monthly)$800/mo

Lease Deposit Est.$20K

Grand Opening$12K

Total Hidden Costs$117K

👤 Owner Reality Check

Hours Per Week40-50

Absentee Owner Friendly?No ✗

Manager-Run Possible?Yes ✓

Seasonal VariationHigh

Labor Cost (% of Revenue)38%

Owner-managed operations. Expect to invest 40-50 hours per week managing day-to-day activities, staff oversight, customer acquisition, and brand compliance. Focus on operational efficiency and franchisee standards adherence.

📊 Franchisee Health

Satisfaction Score74/100 (Good)

Annual Turnover Rate7.0%

Litigation Count (Item 3)15 cases

5-Year Closure Rate5%

Avg Franchisee Tenure6 years

Franchisee AssociationYes ✓

🚪 Exit Strategy & Resale

Resale Value Multiple1.8-2.5xx earnings

Transfer RestrictionsFranchisor approval required; right of first refusal

Non-Compete Period1 years

Non-Compete Radius2 miles

Avg Time to Sell6-12 months

Exit DifficultyDifficult

📋 FDD Transparency Report

Item 19 QualityLimited

Item 19 Includes:

✓ Average unit volume

Territory ProtectionLimited

Territory scope varies by location; limited exclusivity provided

Required Suppliers?No

Supplier Markup RiskNone

Renewal Terms10-year term; renewal terms subject to brand standards compliance

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

High combined fee burden (>8%) (12.0% total)Litigation count: 15 cases

✅ Positive Signals:

Item 19 comprehensive financial disclosureEstablished system with strong unit baseTrack record data available

💡 Due Diligence Verdict

Exiting this franchise is rated as difficult. Plan your exit strategy before you buy — not when you're ready to leave.

AI Disruption Risk Assessment

⚠️ AI Disruption Risk: Moderate

44/100

AI-Proof Disruption Timeline: 3-5 years High Risk

Moderate risk. Mathnasium offers more personalization than Kumon, but AI tutors now match that level. As parents discover AI tutoring works and costs less, center-based tutoring faces structural headwinds. The franchise model is under pressure but not doomed.

AI Threats:

AI tutoring competing on personalizationAI tutors available 24/7 vs. center hoursParents choosing AI tutors over center-based learning

Defensive Moat:

Proprietary teaching methods, trained instructor network, real estate, growing brand recognition.

🤖

AI Risk Analysis

See how AI will impact Mathnasium over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.30

Units per 100K pop.

0.18x

Saturation Index

vs. Education & Childcare avg (1.68/100K)

States with Presence

Low Saturation

Mathnasium has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Vermont	21	645,000	3.26
Washington DC	21	671,000	3.13
Wyoming	18	581,000	3.10
North Dakota	19	781,000	2.43
Delaware	24	1,031,000	2.33

Least Saturated States

State	Units	Population	Per 100K
Florida	22	23,555,000	0.09
Texas	27	30,503,000	0.09
California	35	39,029,000	0.09
Pennsylvania	22	12,961,000	0.17
New York	31	18,777,000	0.17

Growth Opportunity States

High-population states where Mathnasium has minimal or no presence — potential expansion territories.

Arizona Arkansas Nebraska

Investment Thesis

Mathnasium carries a HOLD signal with a FutureScore of 69/100. A math-focused niche with strong demand fundamentals. Low entry cost but also low absolute revenue. The 12% total fee burden on $344K AUV is painful. Best for owners who plan to own 2-3 locations to build meaningful income.

Ideal Investor Profile: Education-passionate operator planning multi-unit ownership

Strengths

Low total investment ($113K-$150K)8% unit growth rateMath-focused niche with clear demandEducation discount on franchise fee available

Risk Factors

10% royalty + 2% ad = 12% total feesLow absolute AUV ($344K)Seasonal enrollment fluctuations

Mathnasium