What is the composition of the Fourth Quartile in Learningrx's financial performance representation?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The chart below represents all centers that were open for the full 12 months in fiscal year October 2023 – September 2024 and that had completed data during that period.
2024 Fiscal Year
| Sample: | Top 25% | Mid-Top | Mid-Lower | Bottom | |
|---|---|---|---|---|---|
| 25% | 25% | 25% | |||
| # of Centers: | 11 | 10 | 10 | 10 | 4 |
| Top Sales | $893,375 | $486,808 | $287,188 | $167,835 | $376,730 |
| Low Sales | $507,737 | $300,712 | $172,105 | $35,673 | $133,094 |
| Median Sales | $601,971 | $391,046 | $229,711 | $75,215 | $195,526 |
| Average Sales | $631,577 | $402,343 | $229,935 | $85,218 | $225,219 |
| Centers meeting or | 2 / 18% | 5 / 50% | 5 / 50% | 3 / 30% | 1 / 25% |
| exceeding average: | |||||
| Median Monthly Local | $3,559 | $3,107 | $2,032 | $879 | $1,779 |
| Marketing Expense | |||||
| Sample: | All Centers | ||||
| Average Sales | $333,848 | ||||
| Average Sales Top 50% | $515,796 | ||||
| Average Sales Lower | $159,812 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–48)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the financial performance data is based on the fiscal year ending September 30, 2024, and includes 45 franchised outlets operating in the United States. The document organizes these outlets into quartiles based on their total revenues. The Fourth Quartile, also referred to as "Bottom" in the provided table, is specifically comprised of the 10 Learningrx centers that generated the lowest total revenue during that fiscal year.
The financial performance of the Learningrx centers in the Fourth Quartile shows a range of sales figures. The top sales within this quartile reached $167,835, while the low sales were $35,673. The median sales for this group were $75,215, and the average sales were $85,218. Additionally, the median monthly local marketing expense for centers in the Fourth Quartile was $879. Only 3 out of the 10 centers in this quartile, or 30%, met or exceeded the average sales for the quartile.
For a prospective Learningrx franchisee, this data highlights the potential for significant variability in revenue among different franchise locations. The Fourth Quartile represents the lowest-performing centers, and understanding their characteristics and challenges is crucial. The relatively low marketing expense and the fact that only a small percentage of centers exceeded the average sales within this quartile may indicate areas for improvement or factors contributing to lower performance. It is important to note that the average sale per student across all centers was $9,832, but this figure does not reflect the specific performance of the Fourth Quartile alone.
Prospective franchisees should carefully consider these figures and investigate the reasons behind the lower performance of centers in the Fourth Quartile. This includes evaluating factors such as location, local market conditions, competition, and management practices. Further due diligence, including discussions with existing franchisees and a thorough review of the Learningrx business model, is essential to assess the potential risks and rewards of investing in a Learningrx franchise.