What is the definition of 'Minimum Annual Revenue Quota' for a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
loper Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portio
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the 'Minimum Annual Revenue Quota' is a revenue threshold a franchisee must meet to maintain their territory. This quota begins six months after the Learningrx center opens.
For the first 12 months of operation, the Minimum Annual Revenue Quota is $50,000 for every 100,000 people in the franchisee's territory. This amount is pro-rated for territories with populations that are a portion of 100,000. For the second 12 months, this quota increases to $75,000 for every 100,000 people in the territory, again pro-rated accordingly. After the second year, the Minimum Annual Revenue Quota increases to $100,000 for every 100,000 people in the territory for each subsequent 12-month period.
Failure to meet the Minimum Annual Revenue Quota can have significant consequences for a Learningrx franchisee. The franchisor may, at its sole discretion, remove the territory's exclusivity, reduce or eliminate the franchisee's territory, or even terminate the franchise agreement. This quota system is designed to ensure that franchisees are actively and successfully developing their territories, but it also introduces a performance-based risk for the franchisee.