Pros & Cons of Taking Over a Business vs. Building a New One

You’ve decided you want to become a Kumon Instructor. How exciting! Now you get to make some very big decisions about your Kumon Center. One of the first things you’ll need to consider are the advantages and disadvantages of taking over a business in the education industry as opposed to building a new Kumon Center.

Let’s look at the pros and cons of building a new Kumon Center and buying an existing Kumon Center.

Education franchise owner standing in her new location in front of students studying in the background.

What are the advantages of building a new Kumon Center?

The biggest advantage to building your own Kumon Center is that you can get exactly what you want. You can choose the location and make sure it’s convenient for you. Plus, the paint, furniture and more are fresh and clean when your students and parents visit.

Kumon’s generous incentives program is another advantage. You may be eligible for up to $36,400 to offset startup costs, including furniture, signage, carpet, marketing and more.

What are the disadvantages of starting your own business?

The downside of starting from scratch is … you are starting from scratch! Buildout could take up to six months; however, after you have signed your franchise agreement and lease, you can (and should) open your center virtually.

After the doors are officially open, you will have to find students and build enrollment, although opening virtually will make this easier. Even better: You won’t have to do it alone. Kumon’s marketing team will help you market your new business to parents through ads, flyers, posters and more.

Still, you should anticipate being in business for several months before you start operating in the black.

What are the advantages of buying an existing Center?

Kumon Centers follow an owner-operated business model. Sometimes, business owners cannot run a business anymore, possibly because they are retiring or relocating. Therefore, they have to sell a Kumon Center into which they have poured their heart and many hours. In fact, there is enough of a demand for existing Centers that Kumon North America has built some Centers in strategic markets as part of a plan to sell them as turnkey opportunities.

One obvious advantage to buying an existing Kumon Center is that you can get to work right away. There is no construction – and so no construction delays or permitting worries. You would “inherit” an existing list of students and parents and probably an experienced staff. You would most likely have income coming in from day one.

What are the disadvantages of taking over a business?

The disadvantage of buying an existing Center is that you probably will pay more for it because you are buying an established business with a customer base.


 Additionally, an existing Center may not be exactly as you would prefer. Maybe the location is not ideal because it’s a bit further from your house than you had hoped. Or perhaps the rent is more than you want to pay. Aesthetically, you might think the building could use a facelift.


And where a new Center may be eligible for incentives to offset startup costs like furniture, paint and carpets, an existing Center is not really a startup, so the new franchise owner is ineligible for those same incentives. Therefore, any refurbishing costs would be out of pocket.


At the end of the day, choosing whether to build your own Center or take over an existing one is a matter of personal preference. Both offer the satisfaction of owning and running your own business, making a positive difference in the lives of children and contributing to your community.


Get started today! Learn more about the Kumon Franchise opportunity here:

About Kumon Franchise

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.

About Kumon Math & Reading Centers:

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.