Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Franchise Chatter Exclusive: A Letter from the President of the International Association of Kumon Franchisees, Nicole Smith

by Franchise Chatter on September 21, 2011

in Child-Related Franchises, Franchise Reviews, Franchisee Spotlight



Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List Find the Ideal Business for You

(Ambrosio’s note:  I woke up to discover a very interesting comment left for my post on Kumon Learning Centers.  The letter from Nicole Smith, president of the International Association of Kumon Franchisees, deserves as much exposure as I can give it, so with her permission, I’ve decided to publish the entire letter in a separate blog post.  Nicole and I have exchanged a few emails and I look forward to presenting more exclusive, insider information on Kumon with her help.  Thank you, Nicole!)

Hi there,

I am the president of the International Association of Kumon Franchisees, which is the only association for Kumon franchisees in Canada and the US. This is one of the best overviews of Kumon that I have seen from an “outsider,” very objective and fair, and accurate in nearly every respect. Thank you for writing it.

I have a few comments.

Kumon Math and Reading Center workbook photo by sachkumon1.  You’re right about the good fit being essential. One aspect of Kumon that franchisees need to know before starting is that it is completely hands-on. The franchise agreement requires that the owner be on site for all class sessions (except for the inevitable occasions when he or she cannot attend, for reasons of illness or business travel for professional development, e.g.).



2.  The franchise fee is $2,000. Also, few Kumon centers of a viable size require only 2 to 3 staff. I have run a successful center for years and sold it at the end of last year due to relocation, and at the same time opened a new Kumon center. I have about 50 subject-students (some students study both math and reading and thus count as two subject-students) at the time of writing, and have 4 staff coming in one day and 3 staff the other day. Average center size in North America is currently about 160 or 170 so it is much more common for there to be 6 or more staff in a center at a time. Staffing is a significant cost in terms of profitability, one of the primary ones along with royalties and (especially when in commercial space) rent.

Retail space is required of US franchisees. In Canada, new franchisees must in almost all cases also open in commercial spaces, though existing franchisees are grandfathered in, so still nearly half of Canadian centers operate in non-commercial spaces.

3.   Social Media – when Kumon hired Mullen almost two years ago to assist them with marketing, Mullen began developing the Kumon website Kumon Math and Reading Center workbook photo by sachkumonand started working on its online presence including the Facebook page, with a fan base currently of over 27,ooo, its Twitter feed followed by over 1,000, and active ongoing engagement with hundreds of mom bloggers. I met with a Mullen representative last week by teleconference and was impressed with how well-developed their strategy is.

4.  Other technological innovations – Kumon North America has made significant strides in developing computer management systems for its franchisees. The current program, CMS Standard, permits franchisees and their staff to plan and record students’ work online, network with multiple computers and generate a number of reports facilitating communication of progress with parents, among other functionalities. Beta-testing of scan-in software is currently being done to assess feasibility for further center management tech support. There are other IT projects in process that are at earlier phases, but in summary, Kumon in North America has come a long way in this regard.

5.  Final thoughts on profitability – this is one significant area for potential franchisees of Kumon to take a hard look at. There are franchisees who are making very good incomes at Kumon — many of these have student enrollments significantly above the average, i.e. 300 or more subject-students, and/or charge tuitions significantly above the “suggested tuition.” For start-ups — location, location, location. Some areas permit for rapid growth to 100 subject-students within the first year and 200 or more in the second or third year. Other areas, though, will require a lot of work to develop, and you need to come in with enough liquid cash to see you through until you are profitable, and have a very well-defined business plan.

For more information, feel free to contact us at info@kumonfranchisee.com

Best wishes,

Nicole



Franchise Matching Quiz



{ 2 comments… read them below or add one }

Stacey H. October 25, 2011 at 8:32 pm

Rethink This Post

Stephanie Albaugh Bauer
I have two children that are currently enrolled in Kumon in Murrieta, CA and am extremely pleased with the progress they are making. I believe in the Kumon methods but am questioning their business practices. 1 week ago we received a notice from Kumon that our center was being closed and that 10/31 would be the last day the center would be open. The owner was not even made aware that these notices were sent out, even though her child is a student there. The parents and owner want to keep the center open but they are being forced to close against their will.
Like · · Saturday at 12:31am ·
Nicole Israelsen likes this.

Stephanie Albaugh Bauer In an effort to appease the parents and of course keep their royalties from students who choose to transfer to the next closest center, they are offering a voucher for 1 subject free for 1 month. The lack of communication, the disregard for the center, its owner, staff, and students astounds me. The notice that was sent had a number to call with questions which was in an incorrect number…..when I was able to get the correct number they were of no help. As a paying customer I feel I should have the right to know why a successful center that we are happy with is being closed! I was told that the information was confidential and was given the brush off. Again, I’m very happy with Kumon’s teaching methods but am utterly disappointed in their business practices. Shame on you Kumon North America!
Saturday at 12:31am · Like

Kumon Hi Stephanie, Thank you for your support of the Kumon Method of Learning, and we apologize for the inconvenience of having to transfer to a new center. Kumon North America makes decisions that are in the best interest of our students. For further questions call: 310-225-2968 x216.

Reply

Nicole Smith December 1, 2011 at 7:35 am

I also posted this on the other blog where you commented:

Dear Stephanie,

I have had many conversations over the years with the owner of that centre, a delightful, intelligent and deeply dedicated instructor who struggled for many months with a mystifying series of confusing directives before being closed down against her will. I feel very much for you and other families who no longer have the benefit of her caring and well-informed instruction.

Because of this and other such cases, I have been in close contact with the new president of KNA, Mr Akira Hamanaka, to request an in-depth look at the way that KNA deals with its franchisees around terminations, especially in the US. There has been some progress made but I still have many questions about a number of recent cases including this one.

Feel free to get in touch with me if you have any further questions through our website at info@kumonfranchisee.com

Warm regards,

Nicole

Reply

Leave a Comment

Previous post:

Next post: