During the first 6 months of operation, what is the minimum amount a Learningrx franchisee may be required to spend on the Regional Advertising Cooperative?

According to Learningrx's 2025 Franchise Disclosure Document, during the first 6 months of operation, a franchisee may be required to spend on the Regional Advertising Cooperative. The amount is the greater of 3% of Gross Revenues or 2/3 of the lowest amount paid by another Learningrx center in the cooperative, but not more than the Maximum Cooperative Advertising Requirement. The maximum cooperative advertising requirement is $3,000 per month.

This means that a new Learningrx franchisee's contribution to the Regional Advertising Cooperative will depend on their gross revenues and what other centers in the cooperative are paying. If 3% of their gross revenues is higher than 2/3 of the lowest amount paid by another center, they will pay the 3% of gross revenues. However, in no case will they have to pay more than $3,000 per month.

It's important to note that this advertising spend is a 'may be required' cost, not a definite one. The actual requirement depends on whether a Regional Advertising Cooperative exists and how it is structured. As of the date of the Franchise Disclosure Document, no advertising cooperatives have been formed. A prospective Learningrx franchisee should confirm whether a cooperative exists in their region and what the specific contribution requirements are.

After the first 6 months, the contribution rules change. Beginning in the 7th month, a Learningrx franchisee may be required to spend up to 3% of their Gross Revenues toward cooperative advertising each month, but still not more than the Maximum Cooperative Advertising Requirement each month. These fees count toward local advertising minimums.