Your Investment

If you are applying for your first Kumon Centre franchise, the Deposit Fee is $500 if you request one Training Kit for Start-Up Training. If you intend to have a two-person Partnership, or if you intend to have a Corporation with two Corporation Instructors (see Item 15), you will require two Training Kits for use at Start-Up Training, but the Deposit Fee then increases to $800. We will apply the Deposit Fee towards your Initial Franchise Fee if you successfully complete Start-Up Training and sign a Franchise Agreement.

The fee for your purchase of the materials you will need to operate your Kumon Centre, such as instruction answer books, student achievement tests, student placement tests and promotional posters, is $1,000. You must pay this entire fee when you sign the Franchise Agreement. This fee is not refundable.

Our Start-Up Training Program consists of preliminary homework assignments, training in a Kumon Centre, on-line training, study of our worksheets and curriculum and two (2) sessions of classroom training at Kumon University in Teaneck, New Jersey. If you successfully complete Start-Up Training and are awarded a franchise, you will be required to attend one (1) additional classroom training session at Kumon University, Teaneck, New Jersey. For both Start-Up training and training that occurs after you are awarded a  franchise, you will be required to travel to Kumon University at your own expense. Expenses you will be required to pay may include transportation, lodging, meals and other expenses. Our Training Agreement (Attachment 1 to our Franchise Disclosure Document) governs the Start-Up Training Period and our Operations Manual contains the requirements for training that occurs after the award of a franchise (see Item 1 and 12, Training).

The fee for your purchase of the materials you will need to operate your Kumon Centre, such as instruction answer books, student achievement tests, student placement tests and  promotional posters, is $1,000. You must pay this entire fee when you sign the Franchise Agreement. This fee is not refundable.

You must equip the Centre at your own expense. At a minimum, you will need tables, chairs, and at least one digital clock. You must purchase the furniture for the separate Junior Kumon instruction area from us; or from a vendor you select, subject to our prior approval in writing. Unless we give prior approval in writing for the vendor you have selected (in which case, you shall be responsible for the purchase), we shall process your order for you. The Junior Kumon furniture consists of one (1) table and four (4) chairs and is included in the Junior Kit, which costs either $750.00 or $950.00 depending on the size of table selected. If your Centre offers Junior Kumon instruction, you must purchase the furniture for the separate Junior Kumon instruction area from our approved vendor; or from a vendor of your choice if we determine the furniture offered by the vendor you select offers furniture of acceptable quality. Unless we approve the vendor you have selected (in which case, you shall be responsible for the purchase), we shall process your order for you. The current cost for this furniture is $510.00 for one table and $204.50 for four chairs, inclusive of shipping. This cost is included in the Junior Kumon Opening Kit that you must purchase from us. Kumon receives no commission or other compensation on account of your purchase of furniture for your Junior Kumon area. Pursuant to Kumon’s Signage Policy contained in our Operations Manual, we will loan one exterior sign to you and install it at your Centre at our expense. We retain ownership of the exterior sign and will remove it at our expense if our relationship with you ends. When affixing signage, the Kumon logo (KUMON and “Thinking Face” design) must be separated from all Centre information (i.e., Centre name, phone number, hours of operation, and website address).

If you are entering into your first Franchise Agreement with Kumon; open a second Centre; or takeover an existing Centre, you must implement the Junior Kumon program at your Centre. If you entered into your first Franchise Agreement with Kumon before 2009 (if you are renewing your Franchise Agreement), you have the choice of offering Junior Kumon at your Centre. The Junior Kumon program is a specially designed program that is provided in a dedicated area of a Kumon Centre. The purpose of the Junior Kumon program is to standardize proper instruction of Kumon worksheets and supplemental materials to preschool children; and is fully described in our Operations Manual. If you offer the Junior Kumon Program at your Centre, you must employ an assistant at your Centre whom you have trained in Junior Kumon instruction to our satisfaction. You must purchase the Junior Kumon Opening Kit (inclusive of a table and 4 four chairs, see note 5 above) at a maximum cost of $950. You must purchase one complete set of books on our Junior Kumon Library of books at a cost of approximately $1,000 - $1,500. You may purchase the books on the Junior Kumon Library of books from a vendor of your choice, including directly from Kumon’s preferred vendor. Whether or not you offer the Junior Kumon program at your Centre, we recommend that you purchase one complete set of our Recommended Reading List from our levels 2A – L at a cost of approximately $1,500 - $2,000. You may purchase the books from a vendor of your choice.

If you are entering into your first Franchise Agreement with Kumon; open a second Centre; or takeover an existing Centre, you must implement the Junior Kumon program at your Centre. If you entered into your first Franchise Agreement with Kumon before 2009 (if you are renewing your Franchise Agreement), you have the choice of offering Junior Kumon at your Centre. The Junior Kumon program is a specially designed program that is provided in a dedicated area of a Kumon Centre. The purpose of the Junior Kumon program is to standardize proper instruction of Kumon worksheets and supplemental materials to preschool children; and is fully described in our Operations Manual. If you offer the Junior Kumon Program at your Centre, you must employ an assistant at your Centre whom you have trained in Junior Kumon instruction to our satisfaction.  You must purchase the Junior Kumon Opening Kit (inclusive of a table and 4 four chairs, see note 5 above) at a maximum cost of $950. You must purchase one complete set of books on our Junior Kumon Library of books at a cost of approximately $1,000 - $1,500. You may purchase the books on the Junior Kumon Library of books from a vendor of your choice, including directly from Kumon’s preferred vendor. Whether or not you offer the Junior Kumon program at your Centre, we recommend that you purchase one complete set of our Recommended Reading List from our levels 2A – L at a cost of approximately $1,500 - $2,000.  You may purchase the books from a vendor of your choice.

When you open your Centre, you will need to hire and train to our satisfaction an assistant for Junior Kumon instruction (see Note [9]). You may also hire additional assistants as the number of students enrolled at your Centre increases. You will determine when to hire assistants and the salary to pay them. Your payroll costs will depend on many factors such as the number of assistant you hire and the prevailing wage rate. This figure is an estimate and we cannot guarantee that you will not incur greater payroll expenses.