This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.
Highlights of Mathnasium’s Item 19 Financial Performance Representations (2012 FDD)
- As a Mathnasium franchisee, you will operate a learning center that provides math instruction using the Mathnasium system of learning. Children typically attend Mathnasium centers two or more times per week for approximately 60 minutes.
The total investment necessary to begin operation of a Mathnasium center ranges from $82,250 to $136,000. This includes the initial franchisee fee that must be paid to Mathnasium which ranges from $19,500 to $37,000, depending on whether you are purchasing your first or an additional franchise.
- The following is a historic financial performance representation for the period from January 1, 2011 through December 31, 2011, and for the period from January 1, 2010 through December 31, 2010.
- It includes average Gross Receipts of Mathnasium’s existing centers that had been open for 12 months or longer as of December 31, 2011 or December 31, 2010, respectively, broken down by quartiles and halves.
- “Gross Receipts” means your monthly gross receipts from all sources in your operation of the Center, including student tuition, registration and testing fees, sales of learning materials, hourly per student private tutoring, and any other approved services.
- “Gross Receipts” excludes only sales tax receipts that you must by law collect from customers and that you pay to the government, any customer refunds actually paid, and coupons or promotional discounts approved by the company.
- As of December 31, 2011, there were 284 Mathnasium Centers in operation. Of the 284 Mathnasium Centers, 71 were not included in this financial performance representation because they had not been open for 12 months or longer as of December 31, 2011. In addition, an additional 19 Mathnasium Centers who had been open for at least 12 months were not included because they had not reported their Gross Receipts to the company for the full 12 month period.
- As of December 31, 2010, there were 226 Mathnasium Centers in operation. Of the 226 Mathnasium Centers, 63 were not included in this financial performance representation because they had not been open for 12 months or longer as of December 31, 2010. In addition, an additional 5 Mathnasium Centers who had been open for at least 12 months were not included because they had not reported their Gross Receipts to the company for the full 12 month period.
- Mathnasium Centers may not mature until they are at least 24 to 36 months old. As of December 31, 2011, 47% of Mathnasium Centers had been open 24 or fewer months. As of December 31, 2010, 53% of Mathnasium Centers had been open 24 or fewer months.
- The financial information below does not reflect the costs of sales, operating expenses, or other costs or expenses that you will incur and that must be deducted from the gross receipts to obtain your net income or profit.
2011 Average Gross Receipts for Mathnasium Centers Operating 12 Months or More
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I looked into purchasing one of these and although they look good on the surface – the franchise is growing rapidly and many existing owners feel like they are left on their own after the purchase. They try and sell you on the locations that do well, but many seem to have trouble making ends meet. What really turned me off was how they are locating franchise territories so close to one another – similar to Kumon. Can result in competition among owners.
Hi all
I am the effectee of mathnasium franchise.I was denied by mathnasium to sign an agreement for filling my E2 visa.This was done at a time where I was all set to go for discovery day and bought my flight tickets,made the business plan,transferred the required funds for franchise setup and right at that moment the franchise director reveals that as he is oblivious of the company policy once he talked to his boss that the legal team is now now more conservative and they would not allow to go ahead with this agreement and was ready to remburse the ticket cost for the discovery day.This is ridiculous that there employees are so naive of company policy’s that have wasted my time money efforts and my other business ventures.I would recommend not to get trapped by these franchise as they have protected so much of themselves that eltimately it is the loss of franchisee who have every thing at risk once going business with these franchise.
Hi Faisal
I read your story about buying Mathnasium and an agreement of filling E2. Can you tell me who was the person in the mathnasium HQ who told you about new policy.