To whom is the Learningrx Area Development Fee paid?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
VELOPMENT AGREEMENT (Two Centers)**
| Amount | |||||
|---|---|---|---|---|---|
| Micro | Standard | Method of | To Whom Payment is to be | ||
| Type of Expenditure | Franchise | Franchise | Payment | When Due | Made |
| Initial Investment to Open Initial | $148,000 | $220,000 | See Estimated Initial Investment: Single Center chart above in this Item 7 | ||
| Micro or Standard Center | |||||
| Area Development Fee | $10,500 | $15,750 | Lump Sum | Upon execution of Area Developer Agreeme |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Area Development Fee is paid to the Franchisor. This fee is a one-time payment due upon the execution of the Area Developer Agreement.
The Area Development Fee for Learningrx is equal to 35% of the value of the then-current Initial Franchise Fee and Initial Training and Materials Fee multiplied by the number of additional centers, after your initial center, granted pursuant to the Area Development Agreement. If a franchisee chooses to open more than two centers, the Area Development Fee will increase by either $10,500 (Micro Center) or $15,750 (Standard Center) for each additional center, after the initial center, that Learningrx will grant the franchisee the right to open and operate under the Area Developer Agreement.
This fee grants the franchisee the right to open and operate additional Learningrx centers, provided they comply with the development obligations outlined in the Area Developer Agreement. It's important to note that all fees and payments are generally non-refundable, unless otherwise stated or permitted by the payee, so prospective franchisees should carefully consider their development plans before entering into an Area Development Agreement.