School closures, a shift to online learning and a lack of in-person instruction helped fuel the exponential growth that the education franchise market is now experiencing.
Kumon Centers throughout the U.S. and Canada experienced record enrollment numbers in 2022, and that increased demand for in-person instruction in Kumon’s centers is expected to continue into the future. An unintended consequence of the pandemic’s shutdowns was the creation of a widening education learning gap. That gap is the driver of the current surge in education franchises across the U.S. and Canada as parents continue to enroll their children in Kumon Centers.
“Kumon Centers are full of children whose parents don’t want them to fall behind,” says John Collins, Kumon’s vice president for center development in the U.S. “Parents are rightly concerned about their child’s education. We’ve already seen reports from the Nation’s Report Card last year that showed the widening education gap in both math and reading. Our Instructors are able to work individually with students and help them continue their education in a way that can close any gaps and get them ahead in their studies.”
A 2022 market study of the global private tutoring market by Global Industry Analysts Inc. reported the market was estimated at $124 billion in 2020 and projected to reach $202 billion by 2026, with a compounded adjusted growth rate (CAGR) of 8.4%. The online market also is expected to grow in the future, at nearly the same rate as in-person learning.
“The market report wasn’t surprising,” Collins adds. “We know the demand is there, in our U.S. and Canadian centers. We want Instructors who want to create an exciting career opportunity for themselves, have control of their own business and thrive on helping students in their community.”
But the ongoing growth isn’t all pandemic related. The need for supplemental enrichment education, like that offered by Kumon, is on the rise as competition intensifies among students to gain acceptance into the schools and colleges of their choice, the Nation’s Report Card says.
While the demand persists, the opportunities to open centers around North America abound. If you think there’s a center near you that already meets the demand of the community, think again. Many communities need multiple centers to keep up with both the online and in-person demand.
Kumon’s Area Development Team helps new Instructors find suitable locations to sustain a successful business with room to grow.
“The recruiters provide them demographics, so they have tools and data to look at,” Collins says. “That lets them see the number of children in the area, educational attainment and income levels.”
All of the information is taken into account when determining whether a new location is suitable for a Kumon Center. But that isn’t all that happens. When it comes to expanding within certain areas, Kumon takes a different approach, especially with its existing locations.
“We get our current Instructors involved in the expansion process,” Collins adds. “I know a lot of franchises out there are just going to say, ‘OK, area development says we are going to open here, so that’s where we are going to open, and you just need to deal with it. You have your territory, and we are going to open a new location just outside your territory because we can do that.’ We don’t work that way.”
The process in determining new locations that play into the company’s sustainable business model can be a complicated process. But when a new area is selected, new and existing instructors can know it’s been properly vetted.”
“We don’t want to open a center just to open a center,” Collins says. “We don’t want just a headcount. We know how stressful this can be for our Instructors. This is part of our business. We try to be as transparent as we can and get them involved.”
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In business for over 60 years, Kumon is consistently ranked #1 in the education category by Entrepreneur magazine and this year, Kumon was ranked #6 in the Top Ten of the entire Franchise 500® list. Investment starts at less than $65,000 and Kumon offers up to $34,000 in incentives—veterans may qualify for an extra $10,000 bonus. Opening a Kumon Franchise is ideal for individuals with a passion for education and for helping kids. See if Kumon Franchise is right for you.
For kids from pre-K to high school, Kumon is a math and reading academic enrichment program that goes well beyond traditional tutoring, unlocking the potential of children to achieve more. Through daily practice, the individualized approach helps children develop strong math, reading, writing, and grammar skills. Students develop confidence, increase focus, and improve study habits. Kumon Instructors guide kids through their individual curriculums, helping them set and achieve goals.