With current labour shortages, there are career openings aplenty now. Kumon Australia and New Zealand has more than 40 opportunities for new franchises to start-up a new Kumon centre, and over 20 existing franchises for sale, ready for a new owner-operator to take the reins.
So, what are the advantages of becoming a Kumon franchisee? In this article, we explain the strengths of Kumon’s franchise system, and why becoming a Kumon franchisee is a competitive option:
- Own a business within a rapidly growing industry
Tutoring is a billion-dollar industry in Australia. One in seven Australia children will be enrolled with a tutoring provider at some point in their schooling, according to statistics released by the Australian Tutoring Association.
Furthermore, the Australian Government predicts strong jobs growth in the private tuition sector, with an increase of people employed from 44,300 in 2021 to 48,900 by 2025.
This growth is fuelled by global demographic changes and rising levels of educational attainment. While growth halted at the onset of the COVID-19 pandemic, the sector is growing again as parents seek support for their children. And, according to the New Zealand Tutoring Association, the domestic market is keeping pace with international growth.
- Low start-up costs and strong earnings potential
Total estimated start-up costs for a new Kumon franchise, in a commercially-leased venue, range from $9052 to $31,774. This includes the initial franchise fee of $5,000, one of the lowest within the franchising sector. Kumon’s low start-up costs mean franchisees often do not need to take out large loans to establish a brand-new franchise. This is an important consideration in the context of rising interest rates. For those considering purchasing an existing Kumon franchise, please note that estimated costs exclude the sale price.
In terms of earnings, there are several key factors that determine the financial viability. These include site exposure and signage, centre facility type, number of days and hours of operation, residential demographics, and the skill and effort that the franchisee contributes towards operating and promoting their business. Potential earnings for a Kumon franchise increase as the business grows.
- A franchise reporting 150 subjects with 10 new enrolments would likely have an annual operating income before tax of around $63,000.
- A franchise reporting 200 subjects with 10 new enrolments, could have an annual operating income of just under $82,000, before tax.
- If a franchise reports 300 subjects with 10 new enrolments, the annual operating income before tax is around $140,000. This trend continues as franchisees grow beyond 300 subjects.
- Stability. Join a tried-and-tested global franchise model, with intensive support provided for your business
Since its establishment in Japan in 1958, Kumon spread throughout the globe. Today, there are 3.61 million Kumon students studying our programmes across 61 countries. Of this number, 41,200 of these students are in Australia and more than 8,400 are in New Zealand.
Kumon’s method of learning and franchise system are tried and tested for students and franchisees, with proven results, even during the COVID-19 pandemic. For example, throughout the lockdowns of 2020 and 2021, while the Kumon Mathematics and English programmes were facilitated virtually to comply with restrictions, no Kumon franchise closed due to financial loss. Now, as many students have returned to in-centre study, Kumon franchises are growing again.
Kumon franchisees receive strong support from the franchisor to ensure their businesses succeed. This includes supply and delivery of all student worksheets, a new franchise launch kit containing, national and state-based marketing campaigns, an assigned professional consultant, and subsidies.