KUMON

Franchising since 1994, Kumon has built a robust network of 1,705 franchise locations alongside 5 corporate centers, reflecting steady expansion in after-school math and reading tutoring. Item 19's absence means no official earnings claims, forcing investors to scrutinize system health: 23 terminations and 5 non-renewals suggest moderate churn, while 64 transfers indicate owners reshuffling rather than exiting en masse. Projected 69 new units signal optimism, but the trajectory points to mature saturation over explosive growth—total locations have held firm without dramatic spikes, implying reliable but not rocket-ship scalability for new entrants.

Economics start strong with a $2,000 franchise fee, far below education peers, and unconventional fees: no ad fund or percentage royalty, just $38 monthly per full-paying student and $19 per partial after training (late fees apply). SBA data underscores real-world financing—98 loans averaging $224,736 with a low 6.1% default rate—suggesting franchisees secure funding and mostly repay, likely buoyed by low overhead in worksheet-driven centers. Absent Item 19, profitability hinges on student volume (targeting parents for preschool-to-high-school kids), but high transfers and terminations flag potential struggles scaling enrollment in competitive markets; this data-first view reveals a cash-flow-positive bet for educators, tempered by opaque revenues.