What is the composition of the First Quartile in Learningrx's financial performance representation?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The first Quartile is comprised on the 11 centers that generated the highest Total Revenue Charged during our last fiscal year ("First Quartile"); the second Quartile is comprised of the 10 Centers that generated the second highest Total Revenue Charged during our last fiscal year ("Second Quartile"); the third Quartile is comprised of the 10 Centers that generated the third highest Total Revenue Charged during our last fiscal year ("Third Quartile"); and the fourth Quartile is comprised of the 10 Centers that generated the lowest Total Revenue Charged during our last fiscal year ("Fourth Quartile").
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–48)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the First Quartile in their financial performance representation is composed of the top-performing centers. Specifically, it includes the 11 Learningrx centers that generated the highest total revenue during the fiscal year ending September 30, 2024. This data is derived from the business records and financial statements prepared by Learningrx's affiliate and franchisees, adhering to generally accepted accounting principles.
This segmentation into quartiles allows prospective franchisees to understand the range of financial performance among existing Learningrx centers. By examining the First Quartile, potential franchisees can see the revenue levels achieved by the top performers in the system. This can be useful for setting realistic expectations and developing business plans.
It's important to note that while the First Quartile represents the highest-performing centers, there is no guarantee that a new franchisee will achieve similar results. Factors such as location, market conditions, and the franchisee's management skills can all impact financial performance. The FDD also mentions that the information pertains to centers open for the full 12 months of the fiscal year and that had complete data, so it may not be representative of centers that were newly opened or had incomplete data.
Prospective franchisees should carefully review the entire Item 19 of the Learningrx FDD and consider consulting with existing franchisees to gain a more comprehensive understanding of the potential financial performance of a Learningrx center. They should also consider the median and average sales figures for all centers to get a broader perspective.