What is the composition of the Second Quartile in Learningrx's financial performance representation?

According to Learningrx's 2025 Franchise Disclosure Document, the Second Quartile in their financial performance representation is comprised of the 10 centers that generated the second-highest total revenue charged during the last fiscal year, which ended September 30, 2024. This data is based on business records and financial statements prepared by Learningrx's affiliate and franchisees, adhering to generally accepted accounting principles. The financial performance representation includes data from 45 franchised centers operating in the United States that had complete data and were open for the full 12 months during the fiscal year.

For a prospective Learningrx franchisee, understanding the composition of each quartile is crucial for benchmarking potential performance. Knowing that the Second Quartile represents the next 10 highest-performing centers after the top 11 provides a clearer picture of the revenue distribution among franchisees. This information can help in setting realistic financial goals and expectations.

It's important to note that Learningrx emphasizes that individual results may vary, and there is no assurance that a new franchisee will achieve the same level of revenue as those in the Second Quartile. The FDD also states that written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. Therefore, a potential franchisee should request and review this substantiation to gain a deeper understanding of the data and its underlying assumptions.