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Mathnasium Franchise Disclosure Document Analysis
AI-assisted analysis of the 2021 Mathnasium FDD. Every finding cited to the source page. Educational analysis only — not legal advice.
Key Red Flags Identified
Minimum Performance Thresholds Can Trigger Territory Loss or Termination
Beginning in month 24, franchisees must maintain at least 75 enrolled students and must not fall below the 8th percentile of all U.S. Centers by Gross Receipts, or they may lose territorial protection or face termination.
Source: p.38
Broad Franchisor Termination Rights With Immediate Non-Curable Defaults
Mathnasium may terminate the franchise agreement immediately and without any cure opportunity for a range of non-curable defaults, including three or more defaults in any 12-month period, unauthorized transfers, and abandonment defined as just five consecutive days of closure without prior approval.
Source: p.52
Renewal Requires Then-Current Agreement With Potentially Different Terms
At renewal, franchisees must sign the then-current form of franchise agreement, which may contain materially different fees, territorial provisions, performance standards, or other obligations than those in the original agreement.
Source: p.51
🔒 5 more red flags identified in this analysis
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Item 19 shows earnings claims — but the full picture is in the other 22 Items.
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