Nievalyn Keel knew she had her fill of the corporate marketing world and wanted a career change – one that put her in charge. That was in 2020, just as the country was enveloped in a global pandemic and she needed something that made financial sense.
Franchising was an appealing option. She was a Kumon mom and loved the brand, and both of her children attended a center near her home. Her family valued education and an educational franchise seemed like a good idea. However, there wasn’t a center for sale near her home.
Keel looked at another education franchise, but as she did more research, there were a few things that gave her a financial pause. Something didn’t add up – literally.
“So, we looked at that franchise, and we were a little nervous about it,” she said. “The fees and everything that they wanted seemed ridiculous,” she added. “The amount of money that you would have to pay them before you even got a client was crazy.”
About a week before her discovery day, she learned Kumon could be an option in a neighboring town. She already loved the brand; the franchise fee was one of the lowest and there were some significant incentives that made the career change manageable.
Financial Cents
Kumon is consistently ranked as one of the top low-cost franchises, and that appealed to Keel as she learned more.
Kumon’s startup costs range from $67,428 to $145,640, depending on location, including the franchise fee of $2,000. In the U.S., Kumon offers up to $38,700 in incentives to cover some of the costs for a new Kumon Center. Veterans may qualify for an additional $10,000 incentive.
“We want to keep the cost of starting a Kumon Center affordable for our franchise owners,” said Angelo Chavez, Kumon’s assistant vice president of franchise development. “We want new instructors, like Nievalyn, to focus on enrolling and helping their students, not worrying about startup costs.”
That worked for Keel, and she ultimately opened her center in Bloomfield, New Jersey, in 2022, but not before doing her due diligence.
Making the Purchase
Before buying the Kumon Center in Bloomfield, Keel wanted her husband to review everything.
“My husband is the money guy in our family,” she said. “He’s been in financial services his whole career. He really did a deep dive into the financials and what we would have to pay before we got customers.”
This time, the math worked. Even her lawyer liked the support the company’s Franchise Disclosure Document laid out for franchisees.
“It felt like much more of a partnership than an organization just saying, ‘Give me all your money,’” she said. “I felt like that was a good model, and what they offer, in terms of startup, reimbursements and all that stuff was also very attractive.”
Between the low cost of the franchise fee and the added financial incentives for opening a new center, it really took a lot of the stress of opening a business from scratch off her mind.
“Kumon’s incentives are significant,” Chavez said. “For instance, a new Instructor can receive up to $12,000 in rent reimbursement in their first year. The company also covers the cost for their signage, any permitting for it, along with furniture and fixtures as part of Kumon’s incentive package.”
Instructors can also get up to $5,500 reimbursed for paint, carpet and window coverings. Then there’s also about $3,600 that can be directed to new center marketing.
“The thought of paying a contractor tens of thousands of dollars was very scary,” Keel said. “Knowing that while I laid this money out, I’d be getting it back, provided me some comfort. When you think about a new business and all the startup costs, it’s scary. A lot of people don’t do this for that reason. They’re worried about when they’re going to start to see the return.”
But after significant scrutiny and research by Keel, her husband and lawyer, she felt confident in her investment to become an Instructor and looked forward to opening.
“Once I looked at everything that Kumon offered, it was an easy decision,” she said. “I opened about three years ago now and it’s going great.”