What is the difference in the initial franchise fee for a Learningrx Micro Franchise versus a Standard Franchise, as detailed in Item 5, and how does this relate to the territory size defined in Item 12?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee ("Initial Franchise Fee") varies depending upon the size of the Territory. You pay an Initial Franchise Fee based on the number of people residing in Franchisee's Territory. Franchisee must pay an Initial Franchise Fee of $30,000 for a micro franchise ("Micro Franchise") (less
than 100,000 people), and $45,000 for a standard franchise ("Standard Franchise") (100,000 to 200,000 people). The Initial Franchise Fee is fully earned upon signing of the Franchise Agreement, and there are no refunds under any circumstances.
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We will grant to you a territory ("Territory") defined by population size. A Micro Franchise has a population of less than 100,000; and a Standard Franchise has a population of 100,000 to 200,000 people, as determined by us. Your Territory may be delineated by boundary streets, highways, counties, or zip codes. We will not operate through our current trademarks, any permanent LearningRx Centers or grant franchises for a similar or competitive business within your Territory as long as you meet minimum revenue requirements, but we have the right to do so anywhere outside your Territory at any time. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also have preexisting PACE Licensees and Clinical Licensees offering educational services under different trademarks and trade names operating in your Territory. You will operate from 1 location approved by us and must receive our permission before relocating. We will grant approval to relocate if you are in compliance with the Franchise Agreement, you have paid all money owed to us and/or our affiliates, and the proposed location meets our site selection criteria as specified in the Operations Manual. Once established and unless otherwise agreed, the boundaries of your Territory will not be adjusted without our prior written consent regardless of whether the population of your Territory increases or decreases over time.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the initial franchise fee varies based on the territory size. A Micro Franchise, covering a territory with less than 100,000 people, requires an initial franchise fee of $30,000. A Standard Franchise, which covers a larger territory with a population between 100,000 and 200,000 people, has an initial franchise fee of $45,000. This means the difference in the initial franchise fee between a Micro Franchise and a Standard Franchise is $15,000.
The size of the territory granted to a Learningrx franchisee directly impacts the initial franchise fee. The franchisor determines the territory's population size, and this determination dictates whether the franchisee pays the Micro Franchise or Standard Franchise fee. The territory may be defined using boundary streets, highways, counties, or zip codes.
It is important to note that Learningrx does not grant exclusive territories. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands. Additionally, preexisting licensees offering educational services under different trademarks may operate within the same territory. The franchisee must operate from a location approved by Learningrx and obtain permission before relocating. The boundaries of the territory will not be adjusted without the franchisor's written consent, regardless of population changes over time.