factual

What is the estimated initial investment to open a Learningrx Standard Franchise Center under the Area Development Agreement?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

Amount
Micro Standard Method of To Whom Payment is to be
Type of Expenditure Franchise Franchise Payment When Due Made
Initial Investment to Open Initial $148,000 $220,000 See Estimated Initial Investment: Single Center chart above in this Item 7
Micro or Standard Center
Area Development Fee $10,500 $15,750 Lump Sum Upon execution of Area Developer Agreement Franchisor
TOTALS $158,500 $235,750

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the estimated initial investment to open a Standard Franchise Center under the Area Development Agreement is $235,750. This total comprises the initial investment to open the Standard Center, which is $220,000, and the Area Development Fee of $15,750. The Area Development Fee is a lump sum payment due upon the execution of the Area Developer Agreement and is paid to the Franchisor.

The initial investment of $220,000 covers various expenses detailed in the Estimated Initial Investment: Single Center chart, as referenced in Item 7. These expenses include the initial franchise fee, travel and living expenses while training, initial training and materials fee, initial marketing campaign, security deposit, rent or real estate improvements, furniture and fixtures, signage, miscellaneous opening costs, insurance policies, computer equipment and proprietary software, and additional funds for the initial three months of operation.

It is important to note that this figure represents the investment required to open the first Standard Center under the Area Development Agreement. The Area Development Fee grants the right to open and operate additional centers, provided the franchisee complies with the development obligations outlined in the Area Developer Agreement. If a franchisee chooses to open more than two centers, the Area Development Fee will increase by $15,750 for each additional Standard Center. Prospective franchisees should carefully review all components of the initial investment and factor in potential increases in the Area Development Fee when planning for expansion.

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.