What does Learningrx consider a 'Transfer Fee'?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
goodwill or brand under any other agreement with Franchisor at the time Franchisee requests permission to transfer the Business or at the time of the transfer;
- (b) Franchisee has settled all outstanding accounts with Franchisor, and Franchisee, and every principal of Franchisee's entity, have executed a general release of Franchisor and all principals of Franchisor from all claims that may be brought by you or any principal;
- (c) the proposed transferee pays Franchisor a fee to transfer the Business ("Transfer Fee") in the amount of Ten Thousand and 00/100 Dollars ($10,000
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Transfer Fee is a fee paid to Learningrx when a franchisee transfers their business. The amount of the transfer fee varies depending on who the business is being transferred to.
Specifically, no transfer fee is required if the Learningrx franchisee transfers their center to a corporation where they are the majority stockholder, or to their child, parent, sibling, or spouse, provided Learningrx approves the transfer. However, if the Learningrx center is transferred to another Learningrx franchisee, the transfer fee is $5,000. In all other transfer cases, the fee is $10,000, which includes initial training at Learningrx's office, onsite training, advanced consultation training onsite/grand opening, and legal fees.
The Transfer Fee is considered fully earned by Learningrx upon payment and is non-refundable under any circumstances. In addition to the transfer fee, the proposed transferee must settle all outstanding accounts with Learningrx and execute a general release of Learningrx from all claims. The transferee must also execute a new franchise agreement and a personal guarantee.