Who bears the expense of a Learningrx franchisee's participation in Multi-Area Marketing Programs?

According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to cooperate and participate in Multi-Area Marketing Programs. These programs may require franchisees to refrain from certain marketing channels and distribution methods, and to pay commissions or referral fees. Franchisees must also adhere to maximum retail pricing, as permitted by law. The document defines Multi-Area Marketing Programs as regional, national, or international programs designed to increase business through various channels, such as internet, shows, events, directories, and co-branding programs.

In addition to participating in Multi-Area Marketing Programs, Learningrx franchisees are also obligated to engage in local advertising. Franchisees must spend a minimum amount monthly on local advertising and promotion, with the specific amount depending on whether they operate a Micro Franchise or a Standard Franchise. The minimum spending requirement is $2,000 for Micro Franchises and $3,000 for Standard Franchises, or 5% of Gross Revenues per month, whichever is greater. These local advertising funds must be paid to independent third parties.

Furthermore, Learningrx franchisees are required to contribute to a Marketing Development Fund (MDF). This contribution is the greater of 3% of the franchisee's Gross Revenue per month, or a minimum payment of $200 for Micro Franchises and $300 for Standard Franchises. The maximum contribution to the MDF is $15,000 per calendar year per center. The franchisor uses this fund for various marketing and sales development expenses, including website maintenance, digital marketing campaigns, and public relations efforts. The franchisor has sole discretion over how the Marketing Development Fund is spent, and expenditures may not be proportionate to individual franchisee contributions or provide direct benefits to each franchisee.