About Mathnasium Exemptions Franchise
Mathnasium is a math tutoring franchise that has been franchising since 2003, backed by Mathnasium Holdings, LLC.
The brand operates learning centers where students receive individualized math instruction using the Mathnasium Method, a proprietary teaching approach that builds mathematical understanding from the ground up.
Students from elementary through high school attend regular sessions that supplement their school education.
Mathnasium Exemptions Franchise Cost & Fees
Minimum Investment
$113K
Average Investment
$131K
Maximum Investment
$149K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,000 | One-time payment upon signing |
| Royalty Fee | Initially, 10% of monthly Gross Receipts plus $500/month base royalty (for first center). After 24 months, base royalty plus greater of 10% monthly royalty or $1,500. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $250 plus 2% of monthly Gross Receipts | National brand fund |
| Total Investment Range | $112,860 – $149,155 | Includes build-out, inventory, working capital |
The investment range of $113K–$149K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Initially, 10% of monthly Gross Receipts plus $500/month base royalty (for first center). After 24 months, base royalty plus greater of 10% monthly royalty or $1,500.) and marketing fee ($250 plus 2% of monthly Gross Receipts) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $26,500 | $49,000 |
| Expenses While Training | $2,500 | $3,000 |
| Base Royalty Fee | $0 | $500 |
| Technology Fee | $110 | $110 |
| Additional Technology Fee | $0 | $45 |
| Rent (1st and last month’s rent) | $6,000 | $14,000 |
| Paint, Carpet and Tenant Improvements | $5,500 | $13,500 |
| Furniture, Signs, Equipment and Supplies | $10,000 | $17,000 |
| Insurance | $1,200 | $1,500 |
| Business License, Name Registration | $250 | $1,000 |
| Professional Services (Legal and/or Accounting) | $1,300 | $2,000 |
| Phone and Utilities | $500 | $1,000 |
| Video surveillance and related equipment | $500 | $2,500 |
| Pre-Open Advertising | $4,000 | $4,000 |
| Additional Funds (4 Months) | $32,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,000 |
| Renewal Fee | $7,000 |
| Technology Fee | $110 per month per Mathnasium Center |
| Annual Convention Fee | $250 per franchisee |
| Administrative fee for late payment | $100 every two weeks until payment is made |
| Administrative fee for late submission of reports | $100 every two weeks until reports submitted |
| Non-Compliance Fine | $300 per month for each non-complying incident |
| Returned payment service charge | $60 per returned payment by bank for insufficient funds |
| Shipping costs | Actual cost of shipping only |
| Payments for “Chargeable Items” | Prices determined by Mathnasium |
| Initial training program tuition for additional trainees | $750 per person |
| Additional Marketing Assessment | Pro rata amount to cover special advertising program |
| Local or regional cooperative advertising | As determined by cooperative |
| Reimbursement of taxes | Actual amount of taxes assessed against us due to your operation of your Center |
| Additional Technology Fee (for online instruction) | $45 per month per Mathnasium Center |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Within 180 days after signing the Franchise Agreement |
| Classroom Training | 32 hours |
| On-the-Job Training | 38 hours |
| Training Location | Online & Los Angeles, CA |
| Additional Training | Mathnasium provides periodic ongoing or supplemental training (online courses, live sessions, tutorials, job aids). Participation is required, but there is no fee for the training itself; franchisees must pay for their own travel and living expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Geographic area believed to contain at least 2,500 children between the ages of 5 and 19 years. |
| Description | You are granted a designated territory with protective rights, meaning if you comply with system standards, minimum enrollment, and Gross Receipts requirements, the franchisor and its affiliates will not locate another Mathnasium Center within your designated territory. The territory is a geographic area described in Attachment 1, believed to contain at least 2,500 children aged 5-19. The franchisor reserves the right to reconfigure territory boundaries based on market changes or relocation, while aiming to maintain similar demographic makeup. The franchisor retains all rights not explicitly granted, including operating other businesses, selling products/services online, and affiliating with competitive brands outside the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | additional 5-year terms |
| Renewal Fee | $7,000 |
| Renewal Conditions | To renew, you must be in good standing, have no more than one written default notice in any calendar year, be current with all monetary obligations, have a satisfactory record of customer service and operating standards, sign a general release, relocate/renovate the Center if required, provide evidence of lease continuation, and sign the then-current successor Franchise Agreement. The renewal fee is waived if your Center's Gross Receipts were in the top 30% of all individual Mathnasium Centers open for 24+ months in the preceding calendar year. |
| Transfer Fee | $7,000 |
| Transfer Conditions | Transfer requires Mathnasium's prior written approval. Conditions include the Center being open for at least 6 months, compliance with all obligations, advance notice with proposed contracts, and the proposed transferee meeting current franchisee requirements (including training and signing the current franchise agreement). The transferee may need to upgrade/relocate the Center. The transferor must sign a general release, provide landlord agreement for lease transfer, pay off any promissory notes, and pay a $7,000 transfer fee (waived if transferring to an entity owned by current owners). |
| Termination for Cause | Non-curable defaults include misrepresentations in application or performance reports, felony conviction of owner/director, unauthorized site/relocation, infringement of IP, unauthorized transfer, failure to respond to communications for 2 weeks, repeated defaults, failure to meet minimum performance for 2+ months, disclosure of confidential information, breach of legal requirements, or appointment of receiver/trustee. Curable defaults (monetary) have a 10-day cure period; other defaults have a 30-day cure period. |
| Non-Compete Period | During the term of the franchise and 1 year after termination or expiration |
| Non-Compete Details | During the term, you and your owners cannot be involved in a competing business without consent. After termination/expiration, for one year, you/owners cannot operate a competing business within 50 miles of your Center. For two years after termination/expiration, you/owners cannot contact Mathnasium customers to enroll them in a competing business. A 'Competing Business' offers educational services to children (academic instruction, tutoring, test prep, etc.) or grants franchises for such businesses. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or one of its owners is required to personally participate in and devote sufficient time and effort to the support and management of the franchise. The Center Director (who can be an owner or an employee) must devote their entire time during normal retail business hours to the management, operation, and development of the franchise business at the Center. The franchisor intends to approve only candidates whose owners plan to actively participate in the direct operation and daily affairs of the franchise, not merely passive investors. A live person must answer the Center telephones during minimum hours. |
| Required Suppliers | Franchisees must purchase required insurance and conduct background checks of employees from designated suppliers. Proprietary Math Dictionaries, chess sets, or Mathnasium Playing Cards must be purchased from the franchisor or a designated supplier. Items bearing Mathnasium marks must be purchased from the franchisor or approved sources. |
| Supply Restrictions | The franchisor must pre-approve any instructional materials not already specified in the Manuals. Approved suppliers are listed in the Manuals and are the only approved suppliers. The franchisor formulates standards and specifications for products from approved suppliers. |
| Franchisor Revenue from Suppliers | $16,123 or less than 0.1% of total revenues (approximately $40 million) in 2021, from purchases by franchisees of Mathnasium Math Dictionaries and other Mathnasium-branded merchandise. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Mathnasium may finance $15,000 of the $26,500 initial franchise fee for additional franchises or for eligible Center Directors purchasing their first franchise. This is paid through a promissory note over 20 months at 10% simple interest per year (or maximum legal rate). Security is a personal guaranty from the franchisee and their spouse or all owners of the franchisee entity. |
Mathnasium Exemptions Franchise Earnings — Item 19
Average Revenue
$271K
Median Revenue
$251K
Revenue Range
$44K – $2.0M
Sample Size
896 units
Past financial performance does not guarantee future results. Individual results will vary.
Mathnasium Exemptions Litigation & Risk Flags
Clean Litigation RecordMathnasium Exemptions has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mathnasium Exemptions System Growth
Total Units
951
Franchised
948
Company-Owned
3
Mathnasium Exemptions currently operates 948 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 98 | 23 | 935 |
| 2020 | 48 | 56 | 927 |
| 2021 | 52 | 31 | 948 |
Transfers: 40 | Closures: 31
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$38.8M
Net Income
$18.4M
Total Assets
$156.0M
Audited by ArmaninoLLP for year ending December 31.
Mathnasium Exemptions Franchise — FAQ
The total investment to open a Mathnasium Exemptions franchise ranges from $112,860 to $149,155, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Mathnasium Exemptions charges a royalty fee of Initially, 10% of monthly Gross Receipts plus $500/month base royalty (for first center). After 24 months, base royalty plus greater of 10% monthly royalty or $1,500. of gross sales, plus a $250 plus 2% of monthly Gross Receipts contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mathnasium Exemptions Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Mathnasium Exemptions to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Mathnasium Exemptions franchise owners report average revenue of $271K and median revenue of $251K. This is based on a sample of 896 units. Past performance does not guarantee future results.
Mathnasium Exemptions has been franchising since 2003. The FDD shows an investment range of $112,860-$149,155, a Initially, 10% of monthly Gross Receipts plus $500/month base royalty (for first center). After 24 months, base royalty plus greater of 10% monthly royalty or $1,500. royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,000 and the total investment ranges from $112,860 to $149,155 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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