Does the Learningrx franchise agreement prevent a franchisee from acquiring additional LearningRx centers?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
, in any manner, the Marks or System by virtue of this Agreement. Each Center will be governed by the individual franchise agreement executed by Franchisor and Area Developer for each Center.
- 1.04. Investment. The Area Developer must contribute some amount of its personal capital to the development of each Center and must own at least a seventy percent (70%) equity
interest in each Center developed under this Agreement. Each of the Area Developer's general managers is strongly encouraged to own at least a ten (10%) equity interest in the Center that the general manager supervises.
- 1.05. Additional Requirements. As added requirements to open another Center as provided for in this Agreement:
- A. Area Developer's current Center(s) each must have collected revenue of at least One hundred, thousand a
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the agreement does place requirements on Area Developers who wish to open additional Learningrx centers. Specifically, to open another center, each of the Area Developer's current centers must have collected revenue of at least $100,000 per quarter for the two most recently completed quarters.
In addition to the revenue requirements, the Area Developer must also maintain a certain level of liquid assets. The amount of liquid assets required depends on the population of the territory. For territories with a population under 75,000, the Area Developer must have liquid assets greater than $150,000 per territory. For territories with a population over 75,000, the requirement increases to $200,000 per territory.
Finally, the Area Developer's current Learningrx centers must meet and be in full compliance with all minimal Learningrx operating standards and offer acceptable customer service. These requirements ensure that franchisees are performing well and are in good standing with Learningrx before expanding their operations.