Success Tutoring vs Kip McGrath: Which Tutoring Franchise Is Right for You?

If you are researching a tutoring franchise in Australia or New Zealand, Kip McGrath will be one of the first names you meet. It has been operating since 1976, it is listed on the ASX, and it has hundreds of centres across several continents. Success Tutoring is a much younger brand, founded in Sydney in 2017 and franchising since around 2020, with a membership-based centre model and an international pipeline that now includes New Zealand, the United States, Canada, the United Kingdom, Singapore and India.

Both are legitimate paths into the tutoring franchise sector. They are built on different assumptions about who the franchisee is, how a centre makes money and what the brand does for you. This guide lays those differences out so you can decide which model fits your background, your capital and your ambitions.

At a glance

• Founded: Kip McGrath in 1976 in Maitland, NSW, by teachers Kip and Dugnea McGrath (company website). Success Tutoring in 2017 in Western Sydney by Michael Black, then 17 years old (Forbes Australia, Inside Small Business).
• Ownership: Kip McGrath Education Centres Ltd is a public company listed on the ASX (code KME). Success Tutoring is privately owned and founder-led.
• Model: Both run physical centres. Kip McGrath offers tuition in centre and online; Success Tutoring runs retail-style learning centres on a membership model.
• Subjects and ages: Kip McGrath focuses on English and maths for primary and secondary students. Success Tutoring covers English and Mathematics from kindergarten to Year 12.
• Footprint: Kip McGrath reported 416 franchise centres and 37 corporate centres at 30 June 2025 (FY2025 results). Success Tutoring reported 35 centres with a launch schedule for 80 more in 2023 (Franchise Executives) and has since announced New Zealand, US, Canadian, UK, Singapore and Indian expansion.
• Fees: Kip McGrath charges an ongoing percentage of centre revenue; Success Tutoring publishes its structure on its investment schedule.

Two tutoring franchise models built in different decades

Kip McGrath grew out of a classroom. Its founders were school teachers, and the business has always positioned itself around lessons delivered by qualified teachers in small groups. It added online lessons during the 2010s and the pandemic years, and the company's results now describe students completing tutoring in person, online or both. The group derives most of its revenue from franchise fees, with the rest from a minority of corporate-owned centres and master territory sales, according to its ASX disclosures.

Success Tutoring grew out of a spare bedroom. Michael Black started tutoring local students in Western Sydney as a teenager and built the model around three things he believed the sector was missing: a retail-style centre that families find as easily as a gym or a cafe, a membership relationship rather than casual bookings, and a franchise system that lets a non-teacher run the business while trained tutors deliver the learning.

The practical difference for an owner is who you are expected to be. Franchise listings for Kip McGrath have historically described the ideal franchisee as a qualified teacher or education professional, although third-party guides note that criteria vary by market, so confirm the current requirement directly. Success Tutoring recruits franchise partners from corporate, engineering, finance and small-business backgrounds, and the system is designed to work without a teaching qualification behind the counter. You can read how several of them made the move in our franchise partner stories.

What students get

Kip McGrath students usually begin with a free assessment, then join small-group sessions built around individual learning plans in English and maths. Because the brand is teacher-led, parents are buying the reassurance of a professional educator in the room. The option to continue lessons online has become a genuine strength for regional and time-poor families.

Success Tutoring students become members of a centre. Lessons are built on a K-12 English and Mathematics curriculum developed by head office and delivered by trained tutors in a bright, open centre designed to feel welcoming rather than clinical. The mascot, Lucky the Kangaroo, and the values of Motivate, Uplift, Inspire are deliberately visible, because the brand believes that children who enjoy coming to a centre stay longer and progress further. You can see the curriculum approach on our learning resources page.

Neither approach is objectively "better" for a child. One is anchored in teacher qualifications, the other in consistency, culture and a resource library the franchisor keeps current.

What franchise partners get

Kip McGrath

Kip McGrath has fifty years of operating history and a network of several hundred centres. That brings a mature set of systems: established software for assessments and lesson planning, a recognised brand in Australia, New Zealand and the United Kingdom, and a public company's governance and reporting. Its FY2025 results noted double-digit franchise revenue growth in the UK and continued growth in APAC, which suggests the support infrastructure is still being invested in. A September 2026 investor update described a plan to re-engage with franchisees after a leadership change, which a prospective buyer should read closely.

Success Tutoring

Success Tutoring sells a turnkey system packaged as the "Success Kit". In practice, that covers:

• Launch and pre-marketing support, with centres signing members before they open. Centres have reported opening with 45, 55, 60 and 70+ members on day one.
• Site selection, leasing and fit-out support for retail-style premises.
• Tutor recruitment and tutor training through an online franchise training platform.
• A K-12 English and Maths curriculum and learning resources maintained by head office.
• Ongoing marketing support and a national and increasingly global brand.
• A "flat" franchising structure where franchise partners deal directly with head office leadership rather than through regional layers.

The flat structure matters more than it sounds. In a network of hundreds of centres, your relationship is often with an area manager or a master franchisee. In a younger network, your questions reach the people who designed the system.

Investment and fees for each tutoring franchise

Success Tutoring does not publish its fee schedule inside blog articles, because figures change and because every candidate receives a full disclosure document under the Franchising Code of Conduct. The current structure is set out on our investment schedule page, and our potential earnings page explains how we talk about revenue without making promises.

For Kip McGrath, the authoritative source is its disclosure document, which it must provide to any prospective franchisee in Australia. What is verifiable publicly is the shape of the model rather than the exact numbers. Kip McGrath's ASX reporting shows the franchisor earns the majority of its income from franchise fees calculated on centre revenue; a 2026 corporate presentation put franchise fees at roughly 60 per cent of continuing revenue, and an equity analyst note estimated the average franchise fee at around 18 per cent of network billings. A 2026 TopFranchise directory listing quoted an initial franchise fee of approximately A$72,000, royalties of 20 per cent and a total initial investment from about A$210,700. These are third-party figures, they differ from older guides, and you should confirm them against the current disclosure document before relying on them.

The structural point for a buyer is this: a percentage-of-revenue royalty means your franchisor's income rises and falls with yours, which aligns incentives but also means the royalty line grows as your centre grows. Make sure you model the royalty at the member numbers you expect in year three, not year one.

Markets and footprint

Kip McGrath is a genuinely international network. Its FY2025 results reported 453 centres in total, with continuing operations concentrated in Australia, New Zealand and the United Kingdom after the company exited the United States, and smaller operations in the Middle East and South Africa. The company's 2026 presentation cited 433 centres at 30 June 2026.

Success Tutoring is Australian-born and still in growth mode. Reported milestones include 35 centres across Australia with a launch schedule for 80 more (Franchise Executives, 2023) and franchise territories sold in more than 100 Australian locations (Inside Small Business). New Zealand was announced as the first overseas market with 25 sites planned over four years, followed by Texas in the United States, Singapore, Canada with a 2026 launch, the United Kingdom and India. Treat these as snapshots rather than live totals, and check available locations for what is open in your region today.

One development worth noting at the time of writing: in September and October 2026, New Zealand-based Crimson Education launched an off-market takeover bid for Kip McGrath Education Centres. After an increased offer of A$0.75 per share on 12 October 2026, the Kip McGrath board recommended that shareholders accept in the absence of a superior proposal (ASX announcements, Business News Australia). A change of control is not necessarily bad for franchisees, but any prospective Kip McGrath buyer should ask how it may affect the franchise agreement, systems and support.

Who each option suits

Kip McGrath may suit you if you are a qualified teacher who wants to run your own centre under a long-established brand, you value a public company's reporting and governance, and you are comfortable with a royalty calculated as a percentage of your revenue.

Success Tutoring may suit you if you come from outside education and want a system built for business owners rather than educators, you want the franchisor to help you open with members already signed, you prefer dealing directly with head office, and you are drawn to a younger brand where territories in strong catchments are still available. Our why invest in tutoring page sets out the market case.

If you are also weighing Kumon, read our Success Tutoring vs Kumon guide; the two older brands differ from each other almost as much as they differ from us.

Frequently asked questions

Do I need to be a teacher to buy a tutoring franchise?

It depends on the brand. Kip McGrath has historically recruited qualified teachers and education professionals, and you should confirm current criteria with the company. Success Tutoring does not require a teaching qualification; franchise partners run the business and recruit tutors with head office support.

Is Kip McGrath a franchise or a company-owned chain?

Both, but overwhelmingly a franchise. At 30 June 2025 the company reported 416 franchise centres and 37 corporate centres. The corporate centres are a small minority and the group earns most of its revenue from franchise fees.

How much does a Kip McGrath franchise cost compared with Success Tutoring?

Kip McGrath's fees are only reliably available in its disclosure document; third-party directories in 2026 quoted an initial fee of around A$72,000 and a 20 per cent royalty, but those figures vary by source. Success Tutoring's current structure is on our investment schedule page.

Does the Crimson Education takeover affect Kip McGrath franchisees?

At the time of writing the offer was open and recommended by the Kip McGrath board. Ownership changes can affect strategy, systems and support, so ask the franchisor directly how the agreement protects you.

Which tutoring franchise grows faster?

Growth depends on the territory and the operator more than the brand. Kip McGrath is mature and growing at single digits; Success Tutoring is early in its international rollout. Ask each franchisor for recent opening data and speak to existing owners.

Choosing between a fifty-year-old brand and a fast-growing challenger is less about which is "best" and more about which was designed for someone like you. If a business-first, membership-based tutoring franchise appeals, start with our why us overview and then walk through the process to see what the next 90 days would look like.

All third-party trademarks belong to their respective owners. Figures about other franchises are taken from their public websites, disclosure documents or reputable franchise directories at the time of writing and may have changed; verify them directly before making any decision. This article is general information, not financial or legal advice.