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.
