According to the Learningrx franchise agreement, what is essential for franchisees to maintain?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ng this Section 4.02 or an Area Developer Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees must meet specific requirements to maintain their territory. A critical aspect is maintaining a Minimum Annual Revenue Quota, which begins six months after opening. The quota is calculated based on the population within the franchisee's territory.
For the first twelve months, the Minimum Annual Revenue Quota is $50,000 for every 100,000 people in the territory. This increases to $75,000 for the second twelve months and then to $100,000 for each subsequent twelve-month period for every 100,000 people (or a pro-rated portion thereof) in the territory. Failure to meet this quota can result in the loss of exclusivity for the territory, reduction or elimination of the territory, or even termination of the franchise agreement, all at Learningrx's discretion.
This quota system means that a Learningrx franchisee's success and territorial rights are directly tied to their ability to generate revenue commensurate with the population they serve. Prospective franchisees should carefully evaluate the population density and potential market within their proposed territory to ensure they can realistically meet these revenue targets. It is also important to understand the potential consequences of failing to meet the quota and to factor this risk into their business planning.