How does Learningrx determine the Area Development Fee if I sign an Area Development Agreement?

According to Learningrx's 2025 Franchise Disclosure Document, the Area Development Fee is calculated based on a percentage of the Initial Franchise Fee and Initial Training and Materials Fee, as well as the number of additional centers you plan to open. Specifically, the Area Development Fee is equal to 35% of the value of Learningrx's then-current Initial Franchise Fee and Initial Training and Materials Fee, multiplied by the number of additional centers (after your initial center) that you are granted the right to open under the Area Development Agreement.

For a Micro Center, the Area Development Fee will increase by $10,500 for each additional center after the initial one. For a Standard Center, this increase is $15,750 for each additional center after the first. This fee grants you the right to open and operate these additional centers, provided you meet the development obligations outlined in the Area Development Agreement. It's important to note that this fee is non-refundable.

To illustrate, if you sign an Area Development Agreement for two centers, you'll pay the Area Development Fee upon execution of the agreement. If you later decide to open more than two centers, the Area Development Fee will increase accordingly for each additional center beyond the initial one, at the rates specified for Micro or Standard Centers. The Development Franchise Fee is paid separately when you sign the Franchise Agreement for each additional center under the Area Development Agreement, as detailed in Item 5 of the FDD.