Mathnasium Franchise Due Diligence

About Mathnasium Franchise

Math-only tutoring franchise using proprietary teaching methodology for K-12 students.

The total initial investment for a Mathnasium franchise ranges from $124,363 to $224,113, which includes the initial franchise fee of $49,500. These figures come from the most recently available Franchise Disclosure Document (FDD) filed with state regulators.

Beyond the initial investment, franchisees pay ongoing royalties of 10% of gross sales and marketing/advertising contributions of 2% of gross sales. These ongoing fees significantly impact your real profit margin, and they are often underestimated by prospective franchisees.

What the Mathnasium FDD reveals

Based on the Mathnasium Center Licensing, LLC 2025 Franchise Disclosure Document (fiscal year 2024 data), Franchise Chatter FDD Talk published July 2025, SharpSheets 2025 analysis, Franchise Payback 2024 database entries, and VettedBiz FDD summaries. Mathnasium was founded in 2002 in Los Angeles by Peter Markovitz, David Ullendorff, and Larry Martinek. The franchisor entity, Mathnasium Center Licensing, LLC, was formed as a California limited liability company on June 20, 2003 and began franchising that same year. Roark Capital, an Atlanta-based private equity firm with approximately 66,000 franchise locations generating $61 billion in systemwide sales across its portfolio (Subway, Jersey Mike's, Servpro, Arby's, Inspire Brands, Orangetheory through affiliates, and others), acquired Mathnasium in November 2021. This was Roark's 28th investment in a founder-owned company and its 98th franchise or multi-location brand. Shant Assarian serves as CEO. The brand has ranked on Entrepreneur Magazine's Franchise 500 list 15+ times since 2004.

Item 5 and 6: Fee Structure

Initial franchise fee is $49,000 (flat, no range). Per Item 7 of the 2025 FDD, total initial investment is $112,936 to $149,616, one of the narrowest and most accessible ranges in franchising. Ongoing royalty is 10% of monthly gross receipts with a $650 per month minimum. Brand fund contribution is 2% of monthly gross receipts plus a $250 per month flat base. Technology fees for the proprietary Learning Management System run an additional several hundred dollars per month. Combined cash fee burden on a franchisee grossing the $293,590 Item 19 average works out to roughly 14% of gross (10% royalty plus 2% brand fund plus roughly 2% in flat fees amortized), materially above typical franchise industry fee loads of 6 to 10% of gross. The 10% royalty alone sits above the industry median of 4% to 8% and is consistent with high-touch education and brand-intensive categories.

Item 19: Earnings Disclosure

The 2025 FDD Item 19 reports on 853 franchised Mathnasium Centers in the United States that were open and operated by the same franchisee for 12 months or longer as of December 31, 2024, broken down by quartiles. Average annual gross receipts were $293,590. Industry analyses estimate owner earnings after expenses at $35,231 to $44,039, implying approximately 19% to 23% EBITDA margin. Estimated franchise payback period is 3.8 to 5.8 years, meaningfully longer than senior care peers (Home Instead and Senior Helpers typically 2 to 3 years on higher AUVs). A critical sample caveat: the 853 reporting units excludes franchisees who had been in operation less than 12 months or who had changed ownership during the period. Item 20 shows 968 total US franchised outlets, meaning approximately 115 franchised locations are not captured in the Item 19 disclosure because they are either early-stage or post-ownership-transfer. Cost of sales, instructor wages, rent, technology fees, and owner compensation are not deducted in the Item 19 tables and must be modeled separately.

Item 20: Unit Count and Growth Trajectory

As of fiscal year 2024, the system includes 968 franchised US outlets plus 4 company-owned US outlets, for a total of 972 US units. The global network has over 1,000 learning centers across 46 states and 12 countries. Net unit growth has slowed in the post-acquisition period compared to the brand's rapid 2014 to 2021 expansion, and current emphasis per franchisee-side reporting is on same-store revenue optimization and technology platform rollouts rather than new territory sales. The 2025 FDD discloses lawsuits and/or bankruptcy information in Item 3 that prospective franchisees should review with counsel before signing. Franchise agreement terms and Protected Territory radius size are specific negotiation points; existing franchisee reviews indicate the Protected Territory definition can be narrow enough to warrant contract-level negotiation before signing, particularly for online student recruitment rights within the territory.

Top 3 Red Flags

1. Combined ongoing fees consume approximately 14% of gross on a $293,590 average unit, compressing operator take-home well below franchisee-investor expectations. The 10% royalty alone is materially above the US franchise industry median of 4% to 8%. Add the 2% brand fund, the $250 monthly brand fund flat fee, the $650 royalty minimum in off-peak months, and LMS technology fees of several hundred dollars per month, and total fee burden approaches 14% of gross sales at the Item 19 average revenue. With estimated franchisee EBITDA margins of 19% to 23% (per independent industry analyses), the gap between gross revenue and franchisee take-home is narrow. On the $293,590 Item 19 average, projected owner earnings of $35,231 to $44,039 is less than median US household income and below what many prospective franchisees assume they are buying when they invest $113,000 to $150,000 in a brand with Mathnasium's profile. Model your pro forma on conservative AUV, not the Item 19 average.
2. Roark Capital private equity ownership is approaching the typical 5 to 7 year hold-to-exit window, which historically pressures royalty structures, technology fee additions, and operational requirements during the exit push. Roark acquired Mathnasium in November 2021 and has now held the brand for approximately 4.5 years as of April 2026. Private equity holds of this vintage typically resolve through sale, IPO, or strategic combination within the next 12 to 24 months. Roark separately backs Youth Enrichment Brands (a platform company formed around i9 Sports in 2021), and strategic combinations within Roark's portfolio remain a live possibility. Existing franchisee reporting (publicly visible on Wefranch and similar review platforms) notes that since the Roark acquisition, corporate focus has shifted toward financial metrics and away from educational and curriculum-based investment. Existing Jersey Mike's franchisees face identical dynamics under Blackstone (also analyzed in this directory) and the pattern should not be ignored. New franchisees signing in 2026 should model the possibility that fee structures, technology requirements, or operational mandates shift during the exit push.
3. Payback period of 3.8 to 5.8 years and 115-unit gap between Item 20 and Item 19 signal that early-stage and transferred units perform materially below the reporting cohort. Mathnasium's 3.8 to 5.8 year payback is roughly double what senior care or home services franchises typically project (2 to 3 years). Combined with the Item 19 structure, which excludes units open less than 12 months and units that changed ownership during 2024, the Item 19 average materially overstates expected first-year and first-ownership-period performance. The roughly 115 franchised units not captured in Item 19 represent approximately 12% of the US network. That cohort's exclusion is legitimate by FDD standards but important to understand: your unit will not match the Item 19 average in year one, and if the franchise does not succeed in your hands, your resale unit's buyer will face the same underperformance until year 2+. Demand your franchise broker introduce you to at least 5 current franchisees whose units are 12 to 36 months old, not 5+ year veterans, to pressure-test real-world ramp curves.

Verdict

Best fit for first-time franchise owners with $150,000 to $200,000 in liquid capital positioned in affluent suburban markets where families treat supplemental academic tutoring as a non-discretionary parental investment, who have existing professional or community relationships in the K-12 parent segment, who are willing to personally own the local sales funnel rather than rely on corporate lead generation (existing franchisee reporting flags corporate lead-gen inconsistency), and who can accept a 3.8 to 5.8 year payback horizon. The brand's proprietary Mathnasium Method curriculum and Learning Management System, 20-plus year track record, and 853-unit Item 19 sample provide legitimate operational infrastructure. The accessible $113K to $150K Item 7 range is genuinely among the lowest in the education category. Not a good fit for operators seeking fast cash-on-cash returns in years 1 to 2, buyers in markets without demonstrated willingness among families to pay $250 to $450 per month for supplemental math tutoring, investors who cannot absorb the risk profile of an aging private equity hold period, or franchisees unwilling to negotiate Protected Territory radius and online-recruitment rights at contract signing. Before signing, demand written answers to: what is the current Protected Territory radius definition (geographic and online), what is the Roark exit timeline per publicly disclosed materials, and what technology fee changes are anticipated in the next 24 months.

This analysis reflects patterns visible in the Mathnasium 2025 FDD (fiscal year 2024 data), Franchise Chatter July 2025 FDD Talk, SharpSheets 2025 FDD summary, Franchise Payback database entries, VettedBiz FDD references, and publicly visible franchisee reviews. Your specific deal terms, Protected Territory definition, technology fee schedule, and Roark-era Franchise Agreement language are not publicly disclosed. Have our AI FDD Analyzer review your specific franchise agreement for deal-level red flags.

Compare Mathnasium with similar franchises

Buyers evaluating Mathnasium typically also review these related FDD analyses for structural, unit-economics, and ownership comparison.

• Kumon Math & Reading Centers - Tutoring franchise comparison: Mathnasium's personalized instruction versus Kumon's self-study worksheet method

Key Questions Before Investing in Mathnasium

These are the due diligence questions most buyers skip before signing a franchise agreement. They go beyond what's in the FDD.

• What is the realistic Year 1 take-home pay? After royalties (10% of gross sales), ad fund contributions (2% of gross sales), rent, labor, COGS, insurance, and debt service. What do you actually keep? Use our Profit Margin Calculator to find out.
• What is the closure rate? Check Item 20 of the FDD. How many Mathnasium locations have closed, been terminated, or "ceased operations" in the last three years? A high number is a red flag.
• Are the territories truly protected? Item 12 defines your territory. Does Mathnasium reserve the right to sell through alternative channels (delivery apps, online, grocery) in your territory? Many do.
• What happens when you want out? Item 17 covers renewal, termination, and transfer. What does Mathnasium charge to transfer? Is there a non-compete after you leave? How long?
• What do current and former franchisees say? The FDD lists every franchisee's name and phone number. Call at least 10 current and 5 former ones. Our Validation Call Scripts tool gives you the exact questions to ask.
• Does the franchisor make money from you or with you? Check Item 21 (audited financials). Does Mathnasium earn most of its revenue from royalties on operating franchisees, or from selling new franchise licenses? The latter is a warning sign.
• Can you afford to lose this money? If Mathnasium fails in 18 months, what is your total financial exposure including the lease, SBA loan personal guarantee, and sunk costs? If the answer makes you sick, reconsider.

Other Education Franchises to Compare

Smart due diligence means comparing alternatives. Here are other education franchises you should evaluate alongside Mathnasium.