What is the Development Franchise Fee for Learningrx, and how is it calculated?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
on 6, the term of this Agreement shall expire upon the earlier of the number of months described in Schedule A from the Effective Date, or (b) completion of the term of the Development Schedule.
- 2.02. Renewal. Franchisor, in its sole discretion, may permit Area Developer to renew this Agreement for an additional term; provided that, without limiting the foregoing, the Area Developer has not defaulted in its obligations under this Agreement or any other agreement with Franchisor, and the parties agree in writing to an extension of the Development Schedule.
3. FEES, TRAINING, FRANCHISE AGREEMENT
- 3.01. Fees. The Area Developer shall pay to Franchisor, on the Effective Date, a nonrefundable development fee in the amount set forth in Schedule A ("Area Development Fee"). At the time Franchisee signs each franchise agreement to open a new Center under the terms of this Agreement, excluding the franchise agreement for the Area Developer's first Center, Franchisee will pay Franchisor a development franchise Fee ("Development Franchise Fee") equal to thirty five percent (35%) of the value of Franchisor's then-current initial franchise fee and initial training and materials fee. Franchisee must sign the then-current form of franchise agreement for each Center that Franchisee develops under this Agreement, the first of which must be signed at the time this Agreement is signed.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Development Franchise Fee is a fee that an Area Developer pays to Learningrx when signing a franchise agreement to open a new center, excluding the initial center. This fee is equal to thirty-five percent (35%) of the then-current initial franchise fee and initial training and materials fee.
For each new Learningrx center that an Area Developer plans to open under the Area Development Agreement, a separate franchise agreement must be signed. Before construction can begin or the center can open, the entire Development Franchise Fee must be paid in full. This fee is in addition to the Area Development Fee, which is paid on the effective date of the Area Development Agreement.
It is important to note that the Development Franchise Fee is based on Learningrx's initial franchise fee and training costs at the time the new franchise agreement is signed, meaning the fee could fluctuate over time. The Area Developer should factor this potential change into their financial planning when committing to open multiple Learningrx centers.