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FDD Talk 2015: The Mathnasium Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on May 22, 2015

in Child-Related Franchises, Education Franchise, FDD Talk 2017: Children's Franchises, Franchise Earnings



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Mathnasium Photo from fastsigns.com

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Mathnasium franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Mathnasium franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Mathnasium’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • average annual gross receipts of Mathnasium’s existing centers that had been open for 12 months or longer as of December 31, 2014, 2013, and 2012, respectively, broken down by quartiles and halves

Section I – Background Information

When high school math teacher Larry Martinek realized his son was struggling with math, he knew he had to come up with a new way to teach the subject. Based on his experiences working with his son, who was tragically killed in a car accident at the age of 19, Martinek refined his experiences into the Mathnasium Method.

In 2002 he partnered up with David Ullendorf and Peter Markovitz to develop the Mathnasium franchise model, opening the first learning center in 2003. There are now more than 500 Mathnasium learning centers in the United States and 16 other countries where children can improve their math skills.

In 2005 the chain’s overall revenues amounted to $2.6 million, a figure that has exploded into $65 million in 2013.



Here’s how Mathnasium is transforming the way math education happens:

Solving Real Problems

Any business concept that involves solving people’s significant problems is a potential winner, and Mathnasium is tackling one of the toughest – how to teach math to children.

High school math test scores continue to decline while at the same time colleges and universities are raising the bar on math requirements for acceptance. This has many parents feeling super-nervous about their children’s math abilities.

Mathnasium provides a solution to this problem, helping children not only understand math, but learn to love it as well.

Simplicity Rules

Each school or teacher has their own way of teaching math. The challenge is that different children learn in different ways. The concept behind Mathnasium is both simple and powerful: Teach children math in a way that makes sense to them.

Martinek’s Mathnasium Method is based on the premise that a student’s dislike of math stems from the frustration and embarrassment of not understanding math the way it is taught in the classroom.

Tailored Approach

Mathnasium centers take the time to assess what children know as well as how they learn. Based on that assessment, a personalized and prescriptive learning program is created for each child.

The learning journey is facilitated by specially-trained tutors that provide both instruction and plenty of encouragement.

The Proof is in the Results

In short, the Mathnasium Method appears to work. The chain claims that improvements in student performance on standards-based tests routinely occur in 20 or fewer sessions. The statistics speak for themselves:

  • 82% of parents report an improvement in their child’s math skills and understanding.
  • 85% of parents report improved attitude toward math after attending Mathnasium.
  • 88% of students saw improvement in their school grades.

Franchisee Satisfaction

When it comes to franchising, another result that’s critically important is how the chain is viewed by its own franchisees. In 2014 and 2015, Mathnasium has ranked first and second, respectively, in the education category of Franchise Business Review’s annual survey of franchisee satisfaction.



Ambitious Goals

Back in January 2014, Mathnasium CEO Peter Markovitz stated his goal to triple the number of learning center locations to 1,500 in just three years.

Section II – Estimated Costs

  • Please click here for detailed estimates of Mathnasium franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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