In this FDD Talk 2016 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 2016 FDD
- Section III – Presentation and analysis of Mathnasium’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015, 2014, and 2013 average annual gross receipts of Mathnasium’s existing centers that had been open for 12 months or longer as of December 31, 2015, 2014, and 2013, respectively, broken down by quartiles and halves
Section I – Background Information
Mathnasium Steadily Expands, Surpasses 600 Locations
Math can be a tough subject, whether you’re talking to a student struggling with the basics or an adult who remembers trying to master algebra. Mathematics education has evolved over the years, and among the methods that focus on tapping into students’ potentials is the Mathnasium Method, created by instructor Larry Martinek and used successfully by Mathnasium.
Martinek and co-founders David Ullendorf and Peter Markovitz opened the first Mathnasium center in 2002, but the concepts began years earlier. Martinek, a teacher, trainer of teachers, and consultant, developed his approach over three decades.
Within this development, a Los Angeles school started to teach from his materials rather than their textbooks. Amid much-improved test scores, Martinek’s methods and materials became a complete curriculum, covering everything from pre-K to 12-grade math. Mathnasium began with a center in Los Angeles that is still owned by Mathnasium LLC.
The company now has more than 600 locations around the world that have helped hundreds of thousands of students. Its home state of California has the most locations with 102; Texas has 89. Most U.S. states have at least one location, and the company offers live online tutoring in several states.
Locations are also in Canada and several countries in Asia. The company is seeking franchise units in the United States and Canada.
Mathnasium Enjoys Steady Growth, But Drops in Franchise 500
According to Entrepreneur magazine, the company posted a 16.2 percent one-year growth rate with 110 new units in 2015 and a 28.7 percent three-year growth rate with 194 new units.
Mathnasium was ranked 169th in Entrepreneur’s Franchise 500 list for 2016, down from 86th in 2015. It had climbed from No. 379 in 2006 and risen steadily each year until the 2016 drop.
Math and Fun Collide
Martinek is the company’s chief instructional officer. His Mathnasium Method uses a customized program developed from an initial assessment to determine what a student needs to improve his or her math skills.
Mathnasium provides personalized instruction, worksheets and games in a fun, supportive atmosphere designed to tap into each student’s potential and provide what each student needs to excel in this important subject.
Students do much more than work with computations on paper or on a blackboard. At Mathnasium, they:
- Use mental math exercises to avoid routinely working out problems on paper using traditional methods.
- Learn the meaning of root words used in math and how to verbalize their reasoning.
- Use visual materials such as pictures, charts and graphs to learn mathematical ideas and concepts.
- Learn math principles through tactile materials such as chips, dice and cards.
- Use written practice to develop their skills.
Mathnasium also helps students overcome negative attitudes toward math and poor self-esteem regarding their math skills.
The company also provides enrichment for advanced math students, using topics that are not found in traditional school math classrooms.
Section II – Estimated Costs
- Please click here for detailed estimates of Mathnasium franchise costs, based on Item 7 of the company’s 2016 FDD (updated).