Frequently Asked Questions - For The Mathnasium Country Franchise
- What is Mathnasium?
- What is the Mathnasium philosophy?
- What is the Mathnasium Method?
- What does a student do at Mathnasium?
- Why do parents enroll their children in Mathnasium?
- What is the business strategy of Mathnasium?
- What is franchising?
- How does Mathnasium employ the strategy of franchising inside and outside the United States?
- What is the business relationship between Mathnasium and a Mathnasium Country Franchisor?
- What are the terms of the contract signed by Mathnasium and the person who is appointed a Mathnasium Country Franchisor?
- If the Mathnasium Country Franchisor chooses to franchise, what would its strategy be?
- How much is the Initial Fee needed to pay to acquire the rights for my country?
- Other than the Initial Fee, how much money would a Mathnasium Country Franchisor need to invest to launch a country, and what kinds of expenses and activities will that investment support?
- How does a Mathnasium Country Franchisor generate revenue?
- How does a Mathnasium Country Franchisor sell franchises?
- How do Mathnasium Country Franchisees support their franchisees?
- How does Mathnasium equip Mathnasium Country Franchisors to launch Mathnasium in their country?
- What milestones might a Country Franchisor aim for in the first 12 months?
- What characteristics is Mathnasium looking for in a Mathnasium Country Franchisor?
- How much do parents pay for monthly instruction?
- What is the ratio of Mathnasium teachers to students?
- How much are Mathnasium teacher's paid?
- What kinds of spaces are Mathnasium Centers located in?
- When centers open how fast do they grow and how large can they grow?
- How many Mathnasium Learning Center franchises should there be in my country?
- How is the initial fee and royalty for franchises set for my country?
- Who are the executives who lead Mathnasium?
- Where can I find answers to other questions I have?
- How can I request more information?
Q: What is Mathnasium?
Mathnasium is an international chain of learning centers where students go after school to boost their math skills. We are highly specialized; we teach only math. Our program is for students aged approximately 5 to 17 years old. Students typically attend once or twice a week, for about an hour. Like in a gym or health club, members pay a low monthly fee and choose a time to attend that is the most convenient for them. Our goal is to significantly increase every child's math skills, understanding of math concepts, and overall school performance, while building confidence and forging a positive attitude toward the subject.
Q: What is the Mathnasium philosophy?
Our view is that children don't hate math. They hate being confused and intimidated by math. With understanding comes passion. And with passion comes growth-a treasure is unlocked. The key to understanding math is Number Sense. Number Sense does not develop by accident. It is the result of a process of interaction with a specific set of concepts and skills presented in a way that makes sense to the learner.
Q: What is the Mathnasium Method?
The Mathnasium Method is the life's work of Larry Martinek, Mathnasium's Chief Education Officer and a teacher and math teaching consultant for the past 30 years. It's the best there is: a time-tested, personalized program, that employs diagnostics, instruction, worksheets, and manipulatives, to build Number Sense, and with it, confidence, a deep understanding, and lifelong love of mathematics
Q: What does a student do at Mathnasium?
Mathnasium provides an appealing and welcoming environment where a student receives both instruction and practice. The student works independently of other students following a curriculum adapted precisely and uniquely based on the student's needs. Teachers, who are rigorously trained in our materials and method, provide instruction, guidance and encouragement.
Q: Why do parents enroll their children in Mathnasium?
Mathnasium is effective, affordable, and highly specialized. We get results. This has been proven repeatedly in independent studies. Parents receive periodic reports detailing their child's progress. Students enjoy their workouts. Most importantly, they acquire Number Sense-the ability to think mathematically. We focus on building a solid foundation of skills, which maximizes each student's success, in school, on university admission test, and beyond. There is a wonderful side-benefit from this process: students' boosted self-confidence.
Q: What is the business strategy of Mathnasium?
The business strategy of Mathnasium is franchising.
Q: What is franchising?
Some companies establish company-owned shops, centers or other operations to provide products or services to customers. Other companies develop a business system and license it to individuals who want to own their own businesses, but want to share a common brand. This strategy is known as franchising. Companies that employ the strategy of franchising are called franchisors. The individuals who license the system from the franchisors are known as franchisees. Mathnasium is a franchisor.
Q: How does Mathnasium employ the strategy of franchising inside and outside the United States?
Within the United States, Mathnasium grants franchises to individuals who want to open learning centers. Outside the United States, Mathnasium has generally chosen not to grant franchises without appointing an intermediary. The management of Mathnasium believes that the success of its learning center franchisees outside the US will be greatest if each country has its own franchisor. Instead of a hiring a manager to oversee a country, Mathnasium grants a franchise to one highly capable individual (or team) from each country. These Country Franchisors own and operate their own franchising company under a license from Mathnasium in the US. In other words, Mathnasium provides a "franchise to franchise." A Mathnasium Country Franchisor is the one, and only, intermediary Mathnasium will permit between itself and the Mathnasium learning center franchisees in other countries. The Country Franchise strategy ensures that learning center franchisees are supported by a local leader - a leader who is knowledgeable and sensitive to local market conditions and committed to the interest of the local children.
Q: What is the business relationship between Mathnasium and a Mathnasium Country Franchisor?
The business relationship is defined in a contract which is signed by Mathnasium and the person or company that Mathnasium appoints to be the Mathnasium Country Franchisor. In the contract, Mathnasium gives the Mathnasium Country Franchisor the exclusive right to build a national chain of Mathnasium centers in the Country Franchisor's country. The Country Franchisor can choose to build the chain by franchising or by opening Mathnasium centers on a company-owned model.
Q: What are the terms of the contract signed by Mathnasium and the person who is appointed Mathnasium Country Franchisor?
In the contract, Mathnasium grants the Country Franchisor the exclusive rights to develop a chain in the Country Franchisor's country using the Mathnasium name and operating system. The Country Franchisor agrees to pay a one-time initial fee for the country rights, plus a 30% share of the revenue from the sale of franchises and from monthly royalties collected by the Country Franchisor.
Q: If the Mathnasium Country Franchisor chooses to franchise, what should its strategy be?
The franchise strategy is divided into two parts: 1) Selling franchises, and 2) Supporting franchisees. Although the two parts are quite different, they serve a common goal - the success of the franchisees, individually and cumulatively. By selling franchises in all areas within a country where there are customers to be served, the Mathnasium Country Franchisor provides: the infrastructure to penetrate and saturate the market; the advantages of economies of scale for franchisees (example: pooled advertising and other expenses); a diverse "think tank" of franchisees who find more efficient ways to serve customers; an after-market where franchisees can sell their businesses to other franchisees who expand through acquisition. By supporting franchises a Country Franchisor ensures that franchisees in each area have the tools, training, consultation and evaluations on their performance necessary to maximize their revenues and profitability.
Q: How much is the Initial Fee needed to pay to acquire the rights for my country?
The initial fee varies from country to country. The Initial Fee is usually between $100,000 and $500,000 depending on the size of the population of the country and the per capita income. Very small countries may be less; very large countries may be more.
Q: Other than the Initial Fee, how much money would a Mathnasium Country Franchisor need to invest to launch a country, and what kinds of expenses and activities will that investment support?
Your investment will depend on your skills and efforts, on expenses in your country, and other variables. In a large developed country the cost could be, more or less, in a range of $100,000 to $150,000. The reason this estimate is not greater is because many millions of dollars -- and many years -- have already been invested preparing the launch of Mathnasium in your country. That's the cost of developing the Mathnasium education and business system - a cost that has already been borne by Mathnasium.
Other than the value that you place on your own time, as the first and possibly only employee in the early start up stage, the expenses you incur in launching your country franchise will be in selling and supporting franchises. To sell and support franchises it is very helpful if you open your own center. This way you can show people who are interested in opening their own Mathnasium learning center what a center actually looks like. When they do buy a franchise you will be able to provide good advice because you have operated a center yourself. You can sell the center later to recover your investment. The cost of launching a center in the United States is $55,000 to $74,500. Note that in many countries the cost of starting a Mathnasium Center might be half as much, or even much less, because expenses may be lower.
During the initial stages of your development, your franchising related work can be done out of an office in your Mathnasium Learning Center. Later you will need a small but highly presentable office to engage in franchise sales and support activities.
Another cost associated with launching Mathnasium in your country might be the cost of a part-time math teacher, that is, if you do not want to play the role of math educator yourself. 97% of the math children are taught is consistent from country to country. Your math teacher can help with any fine tuning necessary so the Mathnasium education approach fits 100% -- perfectly aligned with your country.
An additional cost will be the cost of advertising on local franchise Internet sites or elsewhere, so that people who are interested in owning their own business, learn about the Mathnasium franchise. Finally there are miscellaneous expenses in starting any business, like basic office equipment, and an accountant or attorney for forms or advice.
Q: How does a Mathnasium Country Franchisor generate revenue?
At first, by selling franchises. For example if the Initial Fee the Country Franchisor charges for each franchise is about $12,000, and the cost of advertising and sales in selling each franchise is $5,000, the Mathnasium Country Franchisor could make a $7,000 gross profit on the sale of each franchise, or $5,000 after paying royalties. That's about $150,000 on the first 30 franchise sales, or $500,000 on the first 100 franchise sales. Over time, Country Franchisors should generate most of their revenue from the monthly royalties paid by franchisees. In the United States each franchisee with 50 students pays about $1,600 per month; a franchisee with 100 students pays about $3,000 per month.
Q: How does a Mathnasium Country Franchisor sell franchises?
Franchises are generally advertised and sold in the same way that other businesses are sold. Every day, in every country, businesses are bought and sold. Businesses are first offered, or advertised, for sale. The advertisement appears on a portal, or other website, which lists franchises or other businesses for sale. This advertising produces leads, also kown as prospects, individuals who ask for more information because they are interested in owning the franchise that is for sale. The Country Franchisor provides this additional information to each prospect by phone or by email and invites the prospect to a meeting.
At the meeting, more information - like education or marketing materials or other parts of the Mathnasium system - can be presented in person. Also at the meeting, the area, or territory, the prospect will operate in will be tentatively mapped. After the meeting the prospect decides if he is interested in buying a franchise. If the prospect does request to buy the franchise, the Mathnasium Country Franchisor decides whether to sell the franchise or decline the prospect's request. This decision is made based on a subjective evaluation by the Mathnasium Country Franchisor who must assess whether or not the prospect has the capital, capability and sensibilities to succeed in business.
Q: How do Mathnasium Country Franchisees support their franchisees?
For each franchisee the process of support begins with local training at the Country Franchisor's learning center or business office. This training, usually 5 to 7 days in duration, provides background information to the franchisee on the business and education methods, and materials, the franchisee will use to establish a learning center in the franchisee's area. After training, the Country Franchisor provides one-on-one consultation as needed via telephone, email, and sometimes in person. Group training is provided using various media and methods. These may include live training in person or by phone, and internet communication. Country Franchisors also evaluate the performance of franchisees to make sure that the franchisee is in compliance with defined standards and is fulfilling other obligations the franchisee has agreed to. On an ongoing basis the Mathnasium Country Franchisor makes sure that tools (educational, business; technology; etc.) which the franchisee needs to succeed are kept up to date. The Mathnasium Country Franchisor also helps to coordinate marketing activities like helping multiple franchisees pool advertising funds.
Q: How does Mathnasium equip Mathnasium Country Franchisors to launch Mathnasium in their country?
Mathnasium Country Franchisor's receive:
- Initial training in Los Angeles and consultation on how to open a learning center and implement a franchising strategy, including how to adapt materials.
- The complete education and business system, including all manuals, materials, and a technology system for tracking the education and financial performance of franchisees.
- Ongoing training and consultation.
Q: What milestones might a Country Franchisor aim for in the first 12 to 18 months?
Month 1: Learn about Mathnasium; schedule visit to Mathnasium in Los Angeles
Month 2: Sign Mathnasium Country Franchisor Agreement
Month 3: Attend Initial Training in Los Angeles
Month 4: Hire part-time expert math teacher: prepare to open learning center; start translation and adaptation of education and business materials and franchise agreement
Month 5: Open learning center; start advertising the franchise
Month 6: Complete adaptation; meet with individuals interested in opening learning centers
Month 7: Sign agreement with first franchisee
Month 8: Train first franchisee
Month 9: Sign second and third franchisees; start to provide franchise advice and other support
Month10: Train second and third franchisees; open business office; sell fourth and fifth franchises
Month 11: Train fourth and fifth franchises; sell sixth, seventh and eighth franchises
Month 12: Train sixth, seventh and eighth franchises.
Q: What characteristics is Mathnasium looking for in a Mathnasium Country Franchisor?
- Integrity
- The desire to build a large business
- The desire to help children
- Multiple business talents, including marketing, sales and management
- A capacity for hard work.
Q: How much do parents pay for monthly instruction?
This varies from country to country. In the United States, Mathnasium now recommends a monthly fee of about $25 per lesson, or $200 to $225 per month when parents sign a minimum 6 month membership contract. In other countries it may be appropriate to charge half as much or less. We believe that we provide much more effective instruction than the one-on-one private tutoring that children generally receive elsewhere, but we like our pricing to be the same or a bit less. Tutoring fees will vary from country to country.
Q: What is the ratio of Mathnasium teachers to students?
This depends on the capability of the teachers in a center. Hiring the right teachers and training them well is important. In the US the maximum ratio in teaching the core Mathnasium instruction of students aged (approximately) 7 to 14 should be about one teacher for every 5 to 7 students.
Q: How much are Mathnasium teachers paid?
This will vary from country to country. Teachers are individuals who have math skills and teaching skills. Sometimes university students are hired by franchisees. Other times, experienced teachers, perhaps retired teachers, are hired. Teachers are paid per hour that they teach. In the US teachers are typically paid approximately $10 per hour, but may receive as much as $15 per hour. In other countries, the cost per hour of teachers may be as little as $3 to $5 per hour, or less.
Q: In what kinds of spaces are Mathnasium Centers located?
In the United States we encourage franchisees to find spaces which offer visibility from the street. In other countries this may not be feasible. In all countries, Mathnasium Learning Centers must be located in buildings which will reflect well on the brand. Particular emphasis is placed on the design and decoration of the interior of the space according to Mathnasium standards. Mathnasium Learning Centers are typically located in spaces ranging from about 900 to 1,200 square feet. (100 to 130 square meters)
Q: When centers open, how fast do they grow and how large can they get?
The growth of centers varies significantly and depends on local marketing effort, quality of instruction, as well as environmental and other factors. Roughly, growth in any given month could be as low as 3 students per month and as high as 15 students per month. Depending on their size centers have the capacity to grow to 150 to 200 students or more.
Q: How many Mathnasium Learning Center franchises should there be in my country?
This will vary from country to country. The United States we have designated approximately one franchise territory per 100,000 in population.
Q: How is the initial fee and royalty for franchises set for my country?
You set the minimum fee and royalty in consultation with us. In the United States the fee is $19,500 per franchise. In some countries it is more, in others it is less. The fee in your country could be as little as $5,000 or as much as $20,000. The US royalty paid by franchisees is now approximately $325 per month plus about 11% of monthly revenues.
Q: Who are the executives who lead Mathnasium?
Mathnasium is the collaboration of four leading education and business experts: Peter Markovitz, Founder and President, is also the founder of Futurekids, and served as its president. Under Markovitz' leadership, Futurekids, an education technology company, established a chain of 690 learning centers, and provided instruction at thousands of schools, in more than 72 countries around the world. Mitchell Brown, Chief Operating Officer, has led successful business development teams at startups including the online photo service Ofoto (now a subsidiary of Kodak), and online calendar When.com (acquired by AOL), and large companies including America Online and Price Waterhouse Consulting. Mitch holds an MBA from the Wharton School of Business, and a Bachelor degree in Quantitative Economics from U.C. Berkeley. David Ullendorff, Founder and Executive Vice President, is an award winning developer of children's media (Children's Television Workshop, TNT, A&E, Lifetime, Showtime). He is the architect of the first definitive computer literacy curriculum for children. A vast undertaking, historic in its breadth and quality, his curriculum has been used to teach millions of children around the world. Larry Martinek, Chief Instructional Officer, has spent his entire career finding a better way to teach math. From inner city public schools to acclaimed magnet schools, to leading private and parochial schools, Larry has served as both a classroom teacher and as a consultant. He has designed curriculum, teaching strategies, and teaching materials. He has trained teachers in the art and science of boosting student's ability to "do" math, thereby increasing their math scores and feeling of self-worth. He is the developer of Mathnasium's educational program, the Mathnasium Method™-one of the most comprehensive and innovative curriculums ever produced for teaching math.
Q: Where can I find answers to other questions I have?
To receive more information click here to request more information. We also suggest that you review the FAQ section for the US franchise. There you will find answers to questions often asked by US franchisees. Some questions are the same as here, but others are different; they are asked and answered from a franchisee's perspective.
Q: How can I request more information?
To take the next step, click here to request more information.
