While 2023’s soaring inflation cooled some economic markets, franchise opportunities in the private education sector remained red-hot. Looking ahead to 2024, Kumon plans to use that momentum to continue thriving.
Initial economic forecasts heading into 2023 looked grim with the expectation of a recession, but those predictions never materialized, inflation cooled, the U.S. Federal Reserve eased its interest rate hikes and the U.S. economy grew. During that time, Kumon's growth followed that of the projections for the education franchise and tutoring industry, where demand remains strong.
“While we were positive about how things were going, we entered 2023 with a lot of question marks about how the economy would perform and how that could impact Kumon,” says John Collins, Kumon North America’s vice president for center development. “We were coming off a record-setting year and had a lot of momentum going that has continued throughout 2023. We can’t wait to see what 2024 brings.”
So, what’s driving that growth? A study by the journal Nature Human Behavior reported students around the world lost about one-third of a year’s worth of knowledge and skills due to the pandemic and the Nation’s Report Card showed significant continued declines in student math and reading scores. It’s a gap so large the public school system is unable to make it up on its own.
So, parents have stepped up and turned their attention to the private education market to provide individualized educational services like enrichment, tutoring and test prep that public schools can’t offer. For the last several years, Kumon has experienced record-setting enrollments of new students to the program. The demand for services isn’t limited to North America alone. Globally, the market for private tutoring is projected to reach $290.8 billion by 2030, up from about $146 billion in 2022. That represents a 9% compound annual growth rate, according to a recently released report, Private Tutoring – Global Strategic Business Report.
The U.S. market was estimated at $26.1 billion in 2022 and is expected to grow by 11.6% to $89.2 billion by 2030. In Canada, the market is forecast to grow at 7.1% over the same period.
“We know the need is there and we want to be able to meet the demand of parents seeking our educational services to help their children,” Collins adds.
The increased demand last year didn’t come from new learning centers alone, and the competition for commercial space presented challenges for some owners, as buildout times increased, and a shortage of space persisted in the hottest markets.
To answer that demand, Kumon modified its structure to allow its new Instructors to offer online instruction and temporary alternate locations to meet their local demand, provided they had received the necessary instruction first.
“What we’ve seen happening in the commercial real estate market is beyond our control, and we saw that hurting the expectations of our new owners,” says Collins. “To add to that, we also saw slowdowns in buildout and in permit approvals, which was no fault of the Instructors. So, we had to modify our plans and develop ways they could open before their physical center was ready.”
That meant some Instructors were able to work from alternative locations and offer online instruction before their centers were provided with a certificate of occupancy.
If you’ve been dreaming about owning your own franchise, Kumon is one of the most affordable investments you can make in 2024.
Kumon’s startup costs range from $64,458 to $139,890, depending on location, and that includes the $2,000 franchise fee. In the U.S., Kumon offers up to $37,100 in incentives to cover some of the costs for a new Kumon Center, including rent reimbursement up to $1,000 per month, $2,000 for new center marketing, signage, furniture, carpet and more. Veterans may qualify for an additional $10,000 incentive.
The quality is unmatched. For 22 consecutive years, Kumon has topped Entrepreneur magazine’s education category, and for the past three years, Kumon has ranked 6th overall on the prestigious Franchise 500. Last year it was also named to the magazine’s Hall of Fame listing.
With Kumon, you’re not left to figure out your business and teaching methods.
The company offers extensive training that can develop your instruction ability and business acumen. If you have an entrepreneurial spirit and the desire to make a difference in the educational career of a student, Kumon can teach you how – and it has an accomplished team to help.
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.