- Kip McGrath was founded in Maitland, NSW in 1976 and has more than 500 centres in about 20 countries.
- The franchisor recommends budgeting about 7% of revenue for marketing, with the national campaign making up roughly a third of that.
- Many purchases are existing centres, so student numbers and retention are the key things to verify.
Kip McGrath Education Centres was started by teachers Kip and Dugnea McGrath to help students who were falling behind at school. It now runs a franchise network of English and maths tutoring centres in Australia, New Zealand, the UK and elsewhere.
Centres are often run by former teachers. Income comes from weekly lesson fees, so enrolments, retention through the school year and the centre’s capacity drive results.
Kip McGrath franchise at a glance
| Sector | Tutoring (English and maths) |
|---|---|
| Franchisor | Kip McGrath Education Centres Ltd |
| Founded | 1976, Maitland NSW |
| Network | 500+ centres in about 20 countries |
| Marketing guideline | About 7% of total revenue; national campaign about one third of that |
| Training | At head office in Sydney |
| Territory | Approved by the CEO based on the proposed centre location |
Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.
How the Kip McGrath model works financially
A tutoring centre has modest setup costs compared with retail food, and its costs are mostly rent, tutor wages and marketing. Income follows the school calendar, with enrolments often rising after school reports and dipping in holidays.
Capacity is limited by rooms, sessions and tutors, so growth means adding sessions or tutors. Understand the franchise fees in the disclosure document and how they’re calculated, because they affect the margin on every lesson.
The numbers to test before you buy a Kip McGrath franchise
- Student numbers, lesson fees and retention by term.
- Tutor wages and session capacity.
- Marketing budget of about 7% of revenue, and the local share you control.
- Rent for suitable premises.
- Franchise fees in the disclosure document and their basis.
- Territory boundaries and nearby centres.
Buying an existing Kip McGrath centre
Existing Kip McGrath centres are sold through brokers and the franchisor, often at modest prices relative to food franchises. Ask for student numbers by term over several years and reconcile turnover to BAS and bank statements. A centre that relies on the owner’s teaching may be worth less to a buyer who won’t teach.
How Franchise Co. can help with a Kip McGrath purchase
We work with buyers and owners of franchise businesses across Australia. For a Kip McGrath centre we can:
- Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests enrolments, retention, fees and wages to test the asking price.
- Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that tracks students, sessions and income by term. See accounting and tax and bookkeeping, BAS and payroll.
- Check your franchise fees. We reconcile franchise fees to the sales they’re calculated on. See royalties and franchise fees.
- Plan the next centre. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.
Kip McGrath franchise FAQs
Who founded Kip McGrath?
Teachers Kip and Dugnea McGrath, in Maitland, NSW in 1976.
How many Kip McGrath centres are there?
More than 500 centres in about 20 countries.
How much should a Kip McGrath centre spend on marketing?
The franchisor recommends budgeting about 7% of revenue, with the national campaign making up about a third.
Do I need to be a teacher to own a Kip McGrath?
Many owners are teachers. Check the franchisor’s current requirements, and if you won’t teach, make sure the centre’s profit covers qualified tutors.
Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to Kip McGrath or Kip McGrath Education Centres Ltd. Kip McGrath is a trademark of its owner and is used here only to identify the brand this guide discusses.
Sources and further reading
- Kip McGrath: Australian franchise sales booklet (PDF)
- Morningstar: Kip McGrath Education Centres Ltd
- ACCC: Franchise disclosure document
Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.
This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.
Talk it through
Every franchise is different. Ask us how this applies to yours.
