factual

What is the due date for the Learningrx royalty fee payment each month?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

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ITEM 6 OTHER FEES

Name of Fee Amount Due Date Remarks
Royalty Fee 8% of Gross Revenues or the Minimum Monthly Royalty (Notes 2, 3, and 4); adjusted to 7.5% for revenues above $500,000/yr and to 7% for revenues above $750,000/yr (within a calendar year) Due on the 10th day of each

Source: Item 6 — OTHER FEES (FDD pages 13–19)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the royalty fee is due on the 10th day of each month. This payment covers the prior month's gross revenues. The royalty fee is 8% of gross revenues, but this percentage may be adjusted to 7.5% for revenues above $500,000 per year and to 7% for revenues above $750,000 per year within a calendar year.

Learningrx also requires franchisees to pay a minimum monthly royalty. For Micro Franchises, the minimum monthly royalty is $500, while for Standard Franchises, it is $800. This minimum royalty payment begins after the center has been in operation for six full months. If 8% of gross revenues does not exceed the applicable minimum monthly royalty, the franchisee pays the minimum amount.

Franchisees should note that if they fail to make timely payments, Learningrx charges interest on late payments. The interest rate is 1% per month, or the maximum interest rate allowed by applicable law, whichever is less. This interest applies to both late payments and payments returned due to insufficient funds, so maintaining sufficient funds and ensuring timely payments is crucial to avoid these additional costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.