Can a Learningrx franchisee deduct credit card processing fees from Gross Revenue?

According to the 2025 Learningrx Franchise Disclosure Document, franchisees are not allowed to deduct credit card or debit card processing fees from their Gross Revenue. This means that when calculating royalties due to Learningrx, the franchisee must report the total revenue received without subtracting any fees charged by credit card companies or banks for processing payments.

This policy has a direct impact on the franchisee's profitability, as they must pay royalties on the full amount of sales, including the portion that is used to cover processing fees. This can reduce the franchisee's net income, especially if a significant portion of their sales are processed through credit or debit cards.

Learningrx requires that cash income reports from the accounting software, without any deductions for fees due to collection methods, be used to calculate the royalty amounts due each month. This ensures that Learningrx receives the correct royalty payment based on the total revenue generated before any deductions for processing fees.

Prospective franchisees should carefully consider this policy and factor in the cost of credit card processing fees when evaluating the potential profitability of a Learningrx franchise. It is important to understand how these fees will affect the bottom line and to plan accordingly.