About Math Reactor Franchise
Math Reactor is a children's math education franchise offering fun first learning programs, math competitions, and fundraiser events under the Math Reactor brand.
The concept is available in two formats: Math Reactor Centers operating from dedicated retail spaces of 1,000 to 1,400 square feet, and Math Reactor Studios operating from secondary use spaces like schools, colleges, and community centers.
The franchise fee is $20,000, and Math Reactor has been franchising since 2021 under Graham Ventures, Inc.
Math Reactor Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 | One-time payment upon signing |
| Royalty Fee | 8% to 12% of Net Sales or $500 per month, whichever is greater of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 5% of Net Sales | National brand fund |
| Total Investment Range | $42,050 – $221,750 | Includes build-out, inventory, working capital |
The investment range of $42K–$222K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% to 12% of Net Sales or $500 per month, whichever is greater) and marketing fee (Up to 5% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $17,500 | $20,000 |
| Business Licenses & Incorporation | $200 | $1,000 |
| Build-out and Permits | $0 | $65,000 |
| Fixtures, Furnishings & Equipment | $1,500 | $45,000 |
| Computer Equipment and Technology | $1,250 | $4,350 |
| Signage | $1,000 | $13,000 |
| Architect/Engineering Fees | $0 | $10,000 |
| Rent, Security Deposits and Utility Deposits | $200 | $7,000 |
| Other Professional Fees | $500 | $3,000 |
| Insurance Deposit | $800 | $1,400 |
| Office Supplies | $100 | $1,500 |
| Training Expenses | $1,000 | $2,500 |
| Grand Opening Advertising | $8,000 | $8,000 |
| Additional Funds (for the initial 3 months of operations) | $10,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 under the Franchise Agreement; $10,000 for Area Developers for each undeveloped Math Reactor Center or Studio, but not less than 50% of the Area Development Fee. |
| Renewal Fee | $2,000 |
| Technology Fee | $250, plus $50 for each security camera in your Franchised Location, per month. |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs. |
| Local Advertising and Promotion | The greater of (i) 3% of Net Sales or $500 per month |
| Call Center Fees | From $200 to $1,000 per month, plus a commission of a percentage of any customer acquisitions |
| Annual Convention Registration | $799 per attendee |
| Additional Training and Assistance | $500 per additional person; $500 per diem charge per trainer plus out-of-pocket costs |
| Product/Supplier Testing and Evaluation Costs | Varies – the costs of testing and evaluation |
| Charges for Inspections and 'Mystery Customer' Quality Control Evaluation | Will vary under circumstances |
| Late Fee and Interest on Overdue Payments | 5% of your overdue amount, and interest equal to 1.5% per month (but not more than any maximum rate set by law) |
| Dues and Assessments Imposed by a Franchisee Advisory Council | As determined by a franchisee advisory council (if established) |
| Center Refurbishment | Will vary under circumstances |
| Prohibited Product, Service, Supplier or Advertising Fee | $250 per day of use or offering of unauthorized products, services, suppliers, or advertising |
| Insurance Procurement | Our cost to obtain insurance coverage if you fail to do so |
| Relocation Fee | $2,000, provided that if our actual expenses exceed this amount, you must pay the amount which exceeds the fee |
| Securities Offering | Our actual expenses |
| Tax Assessment | Our actual expenses |
| Costs and Legal Fees | Will vary under circumstances |
| Standard Default Fee | Up to $500 per month per violation |
| Additional Cure Expenses, Collection Costs, and Post Termination / Expiration Expenses | Our cost and expense if we take action to cure any default |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | $500 per month for each month remaining in the Franchise Agreement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 104 hours |
| Classroom Training | 60 |
| On-the-Job Training | 44 |
| Training Location | As we determine, online, at Math Reactor headquarters (currently in Pearland, Texas) and/or at designated Math Reactor Centers |
| Additional Training | If additional training or assistance is requested or deemed necessary by the franchisor, a per diem training fee of $500 per trainer plus out-of-pocket costs (lodging, food, travel) will be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | One-half (1/2)-mile radius to a three-mile radius for Centers; one-mile radius to a four-mile radius for Studios. |
| Description | The Franchise Agreement may specify a protected territory, with size and scope determined by the franchisor's sole discretion based on factors like urban/suburban area, resident population, primary/secondary school students, and demographics. The territory is not exclusive, and the franchisor reserves rights to operate or license other outlets and distribution channels outside the territory, and may face competition from other franchisees or company-owned outlets. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 additional terms of 10 years each |
| Renewal Fee | $2,000 |
| Renewal Conditions | To renew, the franchisee must provide written notice 6-12 months prior to term end, satisfy all monetary and other outstanding obligations, not be in default, execute a mutual general release, sign the then-current franchise agreement (which may have different terms/fees), comply with current qualification and training requirements, renovate/modernize premises to current standards, provide evidence of right to possession of premises, and satisfy financial responsibility standards. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Transfers require franchisor's prior written consent. Conditions for approval include: all monetary and other outstanding obligations satisfied, no default, execution of a general release, transferee designated as an owner and guarantees performance, transferee meets application qualifications, transferee executes current franchise agreement (which may have higher fees), transferee upgrades location to current standards, transferor remains liable for prior obligations, transferee attends training, and payment of a transfer fee. Transferor must agree to comply with personal covenants. Subject to state law. |
| Termination for Cause | The franchisor may terminate for cause, including defaults under the Franchise Agreement, bankruptcy, or abandonment. Curable defaults (7-day cure period) include failure to pay monies, refusal to permit inspection, failure to operate during specified hours, or failure to afford access to the Computer System. Non-curable defaults include insolvency/bankruptcy, felony conviction or crime involving moral turpitude, threat to public health/safety, loss of premises, unauthorized transfer, false books/records, disclosure of confidential information, failure to comply with non-compete, misuse of Proprietary Marks, repeated defaults, abandonment, or inability to obtain/renew visa. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the franchise term, the franchisee may not divert business to competitors, perform acts prejudicial to goodwill, or hold more than a 1% interest in a Competitive Business (defined as any business offering educational opportunities for children or similar to Math Reactor). This includes a prohibition on disparaging the franchisor or System. After termination or expiration, a two-year prohibition applies to operating a Competitive Business within 20 miles of the former Franchised Location or any other Math Reactor Center/Studio. The franchisee is also prohibited from subleasing, assigning, or selling their interest in the former location or assets to a third party for a Competitive Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or its Designated Principal, if an entity) must be involved in the general oversight and management of the franchised location. A Designated Principal must own at least a 10% beneficial interest in the franchisee entity. A Manager (who can be the franchisee or Designated Principal) must assume full-time responsibility for daily supervision and operation. Replacements for the Designated Principal or Manager must be designated and complete initial training. |
| Required Suppliers | FranchiCzar and Fundio (customer payment processing services); mandatory vendor for exterior signage; mandatory vendor for public relations services; required vendor for specific furniture, fixtures and design aspects. |
| Supply Restrictions | Franchisees must purchase all additional products and other Required Items solely from manufacturers, distributors, and suppliers who meet franchisor's standards and specifications, possess adequate quality controls and capacity, and have been approved by the franchisor. |
| Franchisor Revenue from Suppliers | Rebates generally range from 5% to 15% of purchases from vendors; fixed rebates may also be paid. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Guidant Financial Group, Inc. offers services for using retirement funds (401(k) business financing/ROBS) to buy a business without tax penalties or loans, assists with SBA loans, unsecured financing, equipment leasing, and Portfolio Loans. Benetrends, Inc. also provides programs for using retirement funds (Rainmaker Program) and brokers SBA loans. |
Math Reactor Franchise Earnings — Item 19
Math Reactor does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Math Reactor Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Math Reactor System Growth
Math Reactor currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Salmon Sims Thomas & Associates, PLLC for year ending December 31st.
Math Reactor Franchise — FAQ
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