When does a Learningrx franchisee pay the Development Franchise Fee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisee must sign the then-current form of franchise agreement for each Center that Franchisee develops under this Agreement, the first of which must be signed at the time this Agreement is signed. The Area Development Fee is fully earned by Franchisor when Franchisee signs this Agreement and will not be refunded for any reason, even if Franchisee does not open any of the Center committed to be developed under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a Learningrx franchisee who is also an Area Developer pays the Development Franchise Fee when signing each franchise agreement to open a new center, excluding the agreement for the Area Developer's first center. This fee is equal to 35% of Learningrx's then-current initial franchise fee and initial training and materials fee.
Furthermore, the Area Developer must sign the current form of the franchise agreement for each center they develop, with the first agreement signed at the same time as the Area Development Agreement. It is important to note that the Area Development Fee is fully earned by Learningrx upon the signing of the agreement and is non-refundable, regardless of whether the franchisee opens all the centers they committed to develop.
In practical terms, this means that as an Area Developer expands and opens additional Learningrx centers, they will incur this Development Franchise Fee for each new location beyond their initial one. This fee contributes to Learningrx's revenue and covers the costs associated with setting up and training for each new franchise location. The stipulation that the fee is non-refundable underscores the importance of careful planning and commitment on the part of the Area Developer to fulfill their development obligations.