To whom is the Area Development Fee paid when opening a Learningrx franchise?
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 Agreement | Franchisor |
| TOTALS | $158,500 | $235,75 |
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 directly to the Franchisor. This fee is required when signing an Area Development Agreement, which grants the franchisee the right to open and operate additional Learningrx centers beyond the initial one. The Area Development Fee is a one-time, lump-sum payment due upon the execution of the Area Developer Agreement.
The amount of the Area Development Fee varies depending on whether the franchisee intends to open Micro or Standard Learningrx centers. For a Micro Franchise, the Area Development Fee is $10,500, while for a Standard Franchise, it is $15,750. This fee covers the right to develop additional centers, provided the franchisee meets the development obligations outlined in the Area Developer Agreement.
It's important to note that this fee is separate from the Development Franchise Fee, which is paid at the time the franchisee signs the Franchise Agreement for each additional center they plan to open under the Area Development Agreement. The Area Development Fee compensates Learningrx for granting the rights to expand within a specific area, while the Development Franchise Fee is for each individual center opened.