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COVID-19 has positively impacted the tutoring market, but it doesn’t mean that demand for good education support will not slow down. While STEM education is making a significant impact on the K-12 online tutoring market for Kumon, the threat from open resources and private tutors is a big issue.
Kumon’s after-school franchise provides mentoring and learning programs to over 4 million students enrolled across 50 countries. The tutoring franchise has more than 24,700 centers worldwide. The company has been extensively working for more than 50 years; in providing the best educational resources, worksheets, exam papers, enhancing the conceptual understanding of all age group students.
However, in providing you unbiased information about every franchise, we keenly study the FDD. Some of the past evidence from FDD unveils a possible red flag about the Kumon franchise opportunity.
In light of recent data, it would seem that franchises in tutoring services and additional education space are suffering from more than 25% of transfer rate.
Out of 1827 franchise agreements, 375 were either discontinued or ended in closure or transfer to a new franchise owner.
Suppose you are interested in a Kumon franchise opportunity. In that case, you should be wary about more than 20% transfer in Kumon and other tutoring franchise opportunities like Eye Level, Sylvan, Tutor Doctor, Club Z, LearningRx, Mathnasium JEI Learning, Huntington The Tutoring Center.
A high transfer rate could either mean a franchise indulgence in churning activity or an unhappy franchisee owner exiting the system at a loss.
Moreover, the process of clearing an initial prerequisite test for owning a franchise is quite lengthy and time-consuming. And one has to go through many steps to be able to buy a Kumon’s Franchise.
It might seem Franchise opportunities at Kumon’s are easy to run. On the contrary, Kumon’s requires many personal and professional skills to execute the operation and maximize the return.
Is a Kumon franchise a great business to own?
Before buying the Kumon franchise, one should go through all the disadvantages and risks of buying it. And one should not take any step without careful consideration of all the aspects.
Fransmart helps the potential franchise buyer make rational decisions by providing information only after properly researching franchise complaints, company financial background, industry trends, lawsuits, and customer complaints.
Some of the valid reasons you must consider before buying a Kumon’s Franchise are:
Reasons Why Not To Buy Kumon Franchise
There are various benefits of buying a Kumon franchise as the brand has created an excellent reputation and trust in the market. But there are also some cons of buying a Kumon’s Franchise which one must consider.
#1 Heavy Investment Needed To Cope With Changing Time
In today’s digital era, all the brick shops are going down. Therefore, as you think of buying a Kumon’s franchise, you should consider that many educational businesses are also turning to be online. Turning to a digital platform may be more convenient and a faster process in delivering the demands of students, but at the same time, it needs investment in sound technology, which might be expensive.
#2 Think About A Cost-Effective Way To Run Your New Business
Setting up an offline or online tutoring franchise can be very challenging. It is just not the initial investment on the franchise fee but also includes the electricity bills, marketing expenses, expenses of the furniture, and much more. The initial estimated cost of starting a Kumon franchise is around $ 64,458 to $ 139,890. Apart from this, there are some recurring expenses too. For making the business profitable, marketing expenses also occur to keep students enrolled constantly. Therefore, consider the working capital required before you spend a hefty amount buying a Kumon franchise.
#3 Competitors May Make It Difficult For You To Survive In The Market
Competition is fierce in the tutoring industry. When a competing center opens near you, you have to face comparison and worry about dividing the students. Running an after-school is nothing like walking in the park with the additional pressure of managing staff and creating a proper schedule. Prior experience in the educational field can be advantageous, but there is a tough road for someone outside the industry.
#4 The training can be difficult and tiring
Kumon’s center trains you on how to run a franchise successfully with their extensive training programs. They have training programs for everyone, the teachers, the franchise owners, for marketing and management of your business in the long term. They teach every aspect of teaching and also constantly check your progress through exams. But this training session can sometimes be very time-consuming, exhaustive, and monotonous. The long Training session prolongs the starting up of the new location, which can also frustrate the franchise owner.
Take Away
Owning your own business can be a big commitment and can require a lot of dedication, even with tutoring franchise leader Kumon. But before coming to a big decision of buying one consider all the aspects, look for their policies, research the company and most importantly look for the post corona effects on the sector.
Kumon’s is a big name in the education sector and is helping students throughout the world with their study centers. But investing all your money and savings at once; requires a lot of risk and dedication. So, think twice and thrice and take a deeper look at all the aspects and conditions before deciding to buy a franchisee.
Sources:
https://www.technavio.com/report/k-12-online-tutoring-market-industry-analysis
https://www.unhappyfranchisee.com/kumon-franchise-great-business/