What fee is payable to Learningrx upon execution of the Area Development Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
sions of Section 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.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, an Area Developer must pay a nonrefundable development fee to Learningrx on the effective date of the Area Development Agreement. The amount of this Area Development Fee is detailed in Schedule A of the agreement. This fee grants the Area Developer the right to develop, construct, manage, and operate a series of Learningrx centers within a specific territory and according to a development schedule.
Schedule A specifies the term of the Area Development Agreement in months, the number of centers to be developed, a description of the development territory, and the minimal development schedule. It also states that if the Area Developer fails to meet any twelve-month schedule, section 6.2 of the agreement will apply.
It is important to note that the Area Development Fee is fully earned by Learningrx once the agreement is signed. This fee will not be refunded under any circumstances, even if the Area Developer does not open the number of centers they committed to developing under the agreement. Therefore, prospective Area Developers should carefully review Schedule A and fully understand their development obligations before signing the Area Development Agreement.