descriptionThe Franchise Dossier
FDD Sourced
Independent analysis. Not affiliated with, sponsored by, or endorsed by Mathnasium. All figures sourced from public FDD filings.
Franchise dossier · Education / tutoring

Owning a Mathnasium: what actually happens

VERDICT · ASSET — IF YOU SCALE
A cheap, steady membership business where one center is a modest job and the real money is in owning several.
You'd pocket / yr*
$30K–$130K
1 unit · before your salary
Your time
30–50 hrs/wk
semi-absentee OK
Becomes an asset at
~3 units
real wealth: 4-6 centers
Agreement term
5 yrs
then renewal
Year one, honestly

A math-only learning center opens with zero students and builds enrollment one family at a time on monthly memberships, so year one is a ramp: rent, a center director and part-time instructors are in place before the student count covers them. The buy-in is light for a storefront business ($127K-$166K), which keeps the ramp survivable, but the fixed monthly fee layers start right away and the $1,500 royalty floor arrives at month 24 whether or not the center has filled.

Where each sales dollar goes
Supplies / goods ~2%Labor ~32%Rent ~17%Franchisor fees ~12%Other opex ~27%Left before debt & you ~21%

Illustrative split for a typical unit (industry estimate). The green slice is store cash flow before your loan payment and before paying yourself a salary — not profit.

If you want out

Centers do change hands: one summary of the 2026 FDD counts 69 transfers against 15 closures in 2025, with no terminations or non-renewals, which points to a working resale market. Value tracks enrolled students and monthly recurring tuition. Buyers are usually other Mathnasium owners adding a center or a new owner-operator, and a transfer needs franchisor approval. A single small center sells as a job; a cluster of filled centers with directors in place sells as a business.

Smart for

Owner-operators who like running a kids' education business and plan to add centers once the first is full.

Dumb for

Anyone expecting one center to replace a professional salary quickly, or to run itself from day one.

The disclosure it's built on

The verdict above is our read of the numbers Mathnasium files with regulators — here they are, cited.

MathnasiumFDD 2026
Item 5 · Initial franchise fee
$49,000
Item 7 · Initial investment
$127,316 – $165,846
Item 6 · Royalty
10% + $650/mo base (floor $1,500/mo from month 24)
Item 6 · Ad / brand fund
2% + $250/mo
Item 19 · Avg unit revenue
$384,874
Item 20 · US units (~2025)
1,043
SOURCEFigures are from the 2026 FDD (issued April 2026) because it is the vintage two summaries agree on: Franzy and FranchiseInvestorData both give fee $49,000, investment $127,316-$165,846, 10% royalty, 2% brand fund, Item 19 average $384,874, 1,043 franchised US centers (high confidence). The 2025 FDD investment range was lower: $112,936-$149,616 per 1851 Franchise and FranchiseInvestorData ($113,113-$149,765 per Pulse), same $49,000 fee. Royalty mechanics (base fee, $1,500 floor from month 24, $250 + 2% marketing) per FranchiseChatter FDD Talk and Pulse: structure high confidence, base fee amount medium ($500 in the 2022 FDD, $650 in recent summaries). 'Fees averaged 17.4% of gross receipts' is from FranchiseInvestorData only (medium). Franchise term: sources disagree, 5 years per 1851 Franchise's reading of the 2024 FDD versus 10 years per FranchiseInvestorData and Pulse (low confidence, 5 used). SharpSheets could not be opened directly.
The catch

The headline is a 10% royalty plus 2% marketing, but the fee stack has fixed dollar layers on top: a monthly base royalty (about $650), a $250 monthly marketing add-on, a technology fee, a required local/digital marketing spend, and from month 24 a $1,500 monthly royalty floor. One FDD summary puts actual fees paid at about 17% of gross receipts on average, not 12%. Fixed layers weigh most on small centers, and a quarter of centers averaged only about $176,000 in gross receipts.

*How to read these numbers. Disclosed (FDD, via summaries): fee, investment, 10% royalty plus 2% marketing and fixed add-ons, Item 19 gross receipts. One summary also reports an Item 19 average operating profit of about $117,000 (30%), not independently confirmed, so it is used only as an upper guide. Cost-structure %, take-home and hours are ESTIMATES from tutoring-center norms. Franchise term is LOW confidence (5 vs 10 years in different sources). — "You'd pocket" is estimated owner cash flow for one average unit before a salary for your own full-time work, so it is not take-home pay. Averages are not promises; your unit could earn far less. This is analysis, not advice — read the current FDD in full and talk to current and former franchisees before you commit.

Seriously considering Mathnasium?

Pressure-test the affordability, then read the full FDD and validate Item 19 (or its absence) with existing franchisees. When we add vetted franchise-consultant and financing partners, they'll be clearly disclosed here and never change our analysis.

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