What must a Learningrx franchisee meet to be in good standing?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as the Franchise Agreement between Franchisor and Franchisee remains in good standing, Franchisor grants to Franchisee and Franchisee accepts from Franchisor, a non-exclusive right and obligation to use the System and Marks to open and operate one Satellite Location, in accordance with the terms of the Franchise Agreement.
Area Developer's current Center(s) each must have collected revenue of at least One hundred, thousand and 00/100 Dollars ($100,000.00) per quarter for the two (2) most recently completed quarters for each Center this franchisee operates;
Area Developer must have liquid assets greater than One hundred, fifty thousand and 00/100 Dollars ($150,000.00) per territory under seventy-five thousand (75,000) in population or greater than Two hundred, thousand and 00/100 Dollars ($200,000.00) per territory over seventy-five thousand (75,000) in population; and
Area Developer's current Center(s) must meet and be in full compliance with all minimal LearningRx operating standards and offer acceptable customer service.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, maintaining a franchise agreement in good standing is crucial for franchisees to retain their licensed rights. Specifically, Learningrx grants franchisees the non-exclusive right and obligation to utilize their system and marks for operating a satellite location, provided the franchise agreement remains in good standing. This underscores the importance of adhering to the terms and conditions outlined in the agreement to avoid jeopardizing the franchisee's operational rights.
For Area Developers seeking to expand by opening additional Learningrx Centers, certain financial and operational benchmarks must be met to remain in good standing. Each existing Learningrx Center must generate a minimum revenue of $100,000 per quarter for the two most recent quarters. Additionally, the Area Developer needs to maintain a certain level of liquid assets: $150,000 for territories with a population under 75,000, or $200,000 for territories exceeding that population. These financial requirements ensure that Area Developers have the resources necessary to support their expansion efforts and maintain the financial health of their existing centers.
Beyond financial metrics, Learningrx also emphasizes compliance with operational standards and customer service to maintain good standing. Area Developers must ensure that their current Learningrx Centers meet all minimum operating standards and provide acceptable customer service. These requirements highlight Learningrx's commitment to maintaining consistent quality and customer satisfaction across all franchise locations. Failure to meet these standards could result in a franchisee not being considered in good standing, potentially impacting their ability to renew their agreement or expand their operations.