How does the Learningrx Corporation handle the expenses for advertising?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
irs and maintenance are expensed as incurred. It is the Corporation's policy that property and equipment expenditures costing less than $5,000 are expensed. Total depreciation expense for the years ended
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Learningrx Corporation expenses advertising costs as they are incurred. For the years ending September 30, 2024, and 2023, the total advertising costs expensed were $50,212 and $34,373, respectively.
This means that Learningrx recognizes advertising expenses in the same period that they occur rather than capitalizing and amortizing them over a longer period. This accounting practice provides a clear picture of the company's advertising spend in each reporting period.
For a prospective Learningrx franchisee, this information offers insight into how the franchisor manages its advertising expenses. While this section pertains to the franchisor's accounting practices, franchisees should refer to other sections of the FDD to understand their own advertising obligations, including any required contributions to marketing funds and how those funds are used. Understanding both the franchisor's and the franchisee's advertising responsibilities is crucial for assessing the overall marketing support provided by the Learningrx franchise system.