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KUMON MATH & READING CENTRES

CO-SPRING 2010
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THE KUMON MATH AND READING PROGRAM: HUMBLE BEGINNINGS





From its humble beginnings in Osaka, Japan, the Kumon Program has become a world renowned movement in the field of education; a movement that began because of a father's love for his son.

The founder, Toru Kumon, created the Kumon Program to help his son, Takeshi, build the necessary skills and knowledge to excel in school. The Program he developed was so successful, that it helped his son successfully tackle calculus by the time he was in the sixth grade. Word spread of Takeshi's success, which lead to the slow, but impactful growth of the Kumon Program, which now serves more than 4 million children in 46 countries.



Since 1958, Kumon has continued to solidify it's excellence in the field of supplemental education around the world and in Canada, driven by the philosophy of its founder - Every child possesses untapped abilities and the potential to excel. Most recently, Kumon was ranked the number one low cost tutoring franchise for the ninth year in a row, and 12th overall on Entrepreneur Magazine's Franchise 500.





SUCCESS: FIND YOURS, ONE CHILD AT A TIME



Kumon believes in the potential of each child, and our mission is to help all children in North America acquire basic academic skills and become independent learners. To accomplish this, we will bring the maximum benefits of the Kumon Method to as many children as possible, regardless of age, race or cultural and economic backgrounds.



This mission is the driving force behind the Kumon Program. It is this mantra that guides the more than 250 Instructors at over 330 centres across Canada in their daily interactions with their students and families.



"I know I'm doing good work here," said Debbie Svensson, Instructor of the North Delta Kumon Math and Reading Centre in British Columbia. "We're (my nine year old daughter and I) both already seeing a lot of improvement in the skills of our students, which is absolutely fantastic."

Since opening in September of 2009, Ms. Svensson has been celebrating business success along with the success of her students. She has grown more than 30 per cent. "My Kumon Centre is a fantastic, comfortable place for my students to grow and is exactly how I dreamed it would be."

Kumon, also has a mission; a commitment, to our franchisees. A promise to help each Instructor find their success in the growth and prosperity of their students. A success that, much like our students, has limitless potential.





"Kumon's mission (to our franchisees), as the largest and fastest growing supplemental education provider and a major force in the lives of millions of children around the world, is to support individual franchisees who can bring the power of Kumon to their community and find success, one child at a time," said David Tsai, Leader of the Franchise Recruitment and Development Department of Kumon Canada Inc. "This task is something we at Kumon Canada Inc. take to heart and strive to achieve each and every day. Supporting our Instructors and their success is paramount. After all, their success equals a child's success."





THE METHOD THAT LEADS TO SUCCESS...FOR BOTH YOU AND YOUR STUDENTS



"It works!" exclaimed Johanne Moreau, Instructor of the Les Rivieres Kumon Math and Reading Centre in Quebec. "Kumon is logical. I can work with children who suffer from various learning disorders, to those students looking for remedial support, to those looking for enrichment and help them all find success. It is wonderful for them. They're so proud of themselves."

This logical, thoughtful method that has the ability to dramatically impact a child's educational success regardless of her unique needs is at the very heart of the Kumon Math and Reading Program.



Children who come into the program are given a placement test and, based on their results, placed at the optimum level to maximize their learning and their confidence. From enrollment, the skies the limit! Currently, Kumon Canada has 32 per cent of their student body studying at an advanced level in math, and 20 per cent in reading (a minimum of more than six-months above their current school grade - statistics as of December 2009).



Learning in small, gradual steps and practicing daily are key factors in the success of the Kumon

Program. By progressing at their own pace, students have the opportunity to experience frequent success, which helps build confidence and increase their enjoyment and interest in learning. Through daily practice, students solidify the skills they've learned. Think of it like learning to play the piano. The more you practice, the easier and more exciting the experience becomes.



"The program is more than simply worksheets," said Sean Vishnu, Toronto Branch Manager at Kumon Canada Inc. "When a child is enrolled in the Kumon Program, they become an integral part of the material they learn. Through feedback sessions with their Instructor and goal-setting meetings, each child takes on a greater role in relation to his educational experiences, leading to an increased feeling of ownership, and a deeper educational experience."



Current Statistics (based on December 2009 data):

Canadian Enrollment: 46,642 students

Number of Centres: 339







BECOMING A FRANCHISEE: YOUR FIRST STEPS





The very first step on the road to becoming a Kumon Instructor is the application process. Basic proficiency in English and Math is required, although teaching qualifications are not. Kumon Instructors regards themselves more as mentors or coaches than teachers in the traditional sense. Students who grow with Kumon often find their relationship with their Kumon Instructor is among the most rewarding and productive of their academic careers.

"These are some of the things Kumon looks for in potential franchisees," explained Mr. Tsai. "Individuals inspired by rewarding work that benefits the community, motivated by accomplishing something meaningful everyday, and driven to help children realize their full potential."



Based on the information contained in the application, potential franchisees are invited to meet with Kumon's Franchise Recruitment and Development Department. At that time, you will participate in a screening process, which includes:



• Math proficiency test

• Reading proficiency test

• Financial background check

• Criminal background check





BECOMING A FRANCHISEE: INITIAL INVESTMENT AND BASIC COSTS





From a business standpoint, Kumon is the most accessible educational franchise opportunity from a cost perspective. For nine consecutive years, Kumon has been ranked the number one low cost tutoring franchise on Entrepreneur Magazine's Franchise 500.



"Our start-up franchise fee is $1000, plus applicable taxes," said Mr. Tsai. "This amount begins an individual's journey towards becoming the newest, successful Kumon Instructor."



Other costs include:



• $1,000 Materials Fee (plus applicable taxes): This amount stocks an Instructor's centre with the materials necessary to guide students towards successful futures, both in and out of the classroom.



• $50,000 - $100,000 Total Capital Investment: This amount demonstrates an Instructor's ability to make the necessary investments to safely and efficiently open a centre in the desired market.



• Kumon does not actually charge royalty, but a flat fee per student, per subject each month. The fee starts at $36 and is lessened to $32 once the Instructor has met certain requirements after one year of operation.





BECOMING A FRANCHISEE: CENTRE REQUIREMENTS





Through studies of the market, Kumon Canada Inc. has found that one of the most successful methods of getting word out about the program has been through commercial locations offering the Kumon Program. With that in mind, it has become a mandate that all new Instructors to open a Kumon Centre are required to open in commercial space, roughly measuring 800 to 1,500 square feet.



"We don't expect our new Instructors to do this alone, so quickly out of the gate," said Mr. Tsai. "To defray the initial investment, a rental subsidy is available. It's 45 per cent of the cost for any 12-month period within the first three years of operation, capped at $700 per month. This is Kumon's way of demonstrating our dedication to our Instructors' success."







BECOMING A FRANCHISEE: YOUR SUPPORT SYSTEM



FRANCHISE RECRUITMENT AND DEVELOPMENT - This team is dedicated to helping Instructors as they begin their journey into the Kumon Program. From the initial assessment to helping determine centre locations, this team strives each and every day to make a franchisee's entrance into the program a positive experience.



BRANDING - This team's major focus is on the marketing of the Kumon brand on both a national and grass-roots level. Offering insightful and impactful consultation coupled with subsidy programs to make marketing a more cost-effective venture, this team offers Instructors the opportunity to reach out to their community in positive and cost-effective ways that generate opportunities for growth.



BRANCH - The most important part of success in the Kumon Program is the delivery of the Program itself. This team is a new Instructor's mentor and information hub. From parent communications to helping Instructors learn positive habits from the excellent students at their centre, this team is dedicated to helping every Instructor across Canada utilize the tools at their disposal to ensure sound Instructional quality and retain students, thus ensuring the growth and success of both the students and the centre.



KUMON UNIVERSITY - Housed in Teaneck, New Jersey, this department offers comprehensive training for all new potential Kumon Instructors. From administration, to centre management software, to marketing, and Instruction and learning materials, this team is dedicated to arming new Instructors with the tools they will need to be successful once the doors of their centre open to the public.



Above and beyond these teams, Instructors will have access to various professional development opportunities throughout the year, such as monthly meetings on a specific focus that is relevant to the successful management of and implementation of the Kumon Program at their centre, online learning modules rooted in a specific element of the program, and online and in-person Instructor study groups.



"Our commitment is to educational growth and a fostering of excellence," said Mr. Vishnu. "That growth is not limited to only our students. These tools are our way of-ensuring that our Instructors improve and strive for excellence in the same manner our students do."



BECOMING A KUMON FRANCHISEE: FAQS



FIRST STEPS



• Completed Franchise Application

• Math and Reading Proficiency Test

• Financial and Criminal Background Check





MONETARY



• Initial Franchise Fee: $1,000 + Applicable Taxes

• Materials Fee: $1,000 + Applicable taxes

• Total Capital Investment: $50,000 to $100,000





CENTRE REQUIREMENTS



• Open in a Commercial Space Size: 800 to 1,500 Square Feet





AVAILABLE INSTRUCTOR SUPPORT



Teams committed to grass-roots support of each and every Instructor across the country.





NEW CENTRE OPENINGS



• 45% Rental Subsidy for a 12-month period within the first three years of operation, capped at $700 per month

• Assistance in the selection and approval of your centre location

• Information on your market (demographics, penetration, etc)





GRASS-ROOTS MARKETING



• Marketing subsidy programs for new and existing centres

• Marketing and PR consultation/Support

• Marketing material development





IN-CENTRE SUPPORT



• Needs Assessment Meetings

• Parent Communication Planning

• Student Observation and Analysis

• Consultation and Training
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