When does a Learningrx franchisee pay the Development Franchise Fee for each additional center under the Area Development Agreement?

According to Learningrx's 2025 Franchise Disclosure Document, a franchisee must pay the Development Franchise Fee at the time they sign the Franchise Agreement for each additional center they plan to open under the Area Development Agreement. This fee is separate from the Area Development Fee, which is paid when the Area Development Agreement is initially signed. Item 5 of the Learningrx Franchise Disclosure Document contains further details regarding the Development Franchise Fee.

For a prospective Learningrx franchisee, this means that the cost of expansion is not only determined at the outset with the Area Development Fee, but also requires a further payment each time a new center is launched. This could impact the franchisee's cash flow and expansion strategy, as the franchisee needs to budget for these fees each time a new franchise agreement is signed for an additional center.

Understanding the timing and amount of these fees is crucial for financial planning. The FDD states that all fees and payments are non-refundable unless otherwise stated or permitted by the payee. Therefore, a Learningrx franchisee should carefully consider their development schedule and financial capabilities before committing to an Area Development Agreement and signing franchise agreements for additional centers. It is important to review Item 5 of the FDD for a more detailed description of the Development Franchise Fee.