Mathnasium

Item 7 lays out the financial entry: franchise fee of $49,000, total initial investment spanning $112,936 to $149,616, covering build-out, equipment, and three months' operating capital for these after-school learning centers. Ongoing fees bite at 10% royalty (minimum $1,500/month after 24 months), 2% brand fund, plus fixed $650/month base royalty, $250/month marketing, $1,000/month digital/local marketing, and $186/month tech fees—stacking up to potentially 12-15% of sales in total outflows. Yet Item 19 counters with optimism: average gross revenue hit $367,545 across 995 franchised units (4 corporate), median $316,794, and estimated profits ranged $107,187-$115,190 after expenses, implying 29-34% margins for top performers—a standout ROI in enrichment education where scale comes from repeat student sessions.

System health per Items 20-21 shows measured growth: 968 locations in 2023 swelled 3% to 995 in 2024, with 78 projected new units signaling confidence amid post-pandemic tutoring demand. But 92 transfers dwarf the 78 openings, suggesting owners are flipping centers profitably—potentially a buyer's market for undervalued math hubs. For investors eyeing steady cash flow over hyper-growth, Mathnasium's numbers substantiate a viable play if you nail local parent demographics; just weigh if those transfers reflect quick wins or quiet exits against modest expansion.