Is a Learningrx franchisee required to participate in Multi-Area Marketing Programs?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) to implement multi-area marketing programs, including regional pricing and service programs which may allow Franchisor or others to solicit or sell clients or otherwise dictate service and pricing strategy, anywhere.
Franchisor reserves the right to issue mandatory policies to coordinate such multi-area marketing programs, including the right to establish minimum or maximum pricing for such programs, as permitted by law; and
- 9.1 Solicitation. Except as stated in this paragraph, Franchisee may not directly market to or solicit customers who reside outside the Territory. However, Franchisee will have the exclusive right to service customers within the Territory generated by Multi-Area Marketing Programs except through the Internet.
- 9.2 Marketing Development Fund. Franchisee must pay a fee into the Marketing Development Fund to develop marketing for the System. Franchisee will pay a Marketing Development Fund contribution equal to the greater of either (i) three percent (3%) per month of Franchisee's Gross Revenue, or, the "Minimum MDF Payment" of Two hundred and 00/100 Dollars ($200.00) for Micro Franchises and Three hundred and 00/100 Dollars ($300.00) for Standard Franchises, up to a maximum of Fifteen thousand and 00/100 Dollars ($15,000.00) per calendar year per Center, at the same time and in the same manner as the Royalty Fee. Company and Affiliate owned Centers will contribute to the Fund on the same basis as Franchisees. Franchisor will hold the Marketing Development Fund contributions in a separate bank account. Franchisor will use the Marketing Development Fund for development expenses such as the creation of marketing and sales tools for centers, development and maintenance of websites and Internet marketing, creating Pay-Per-Click campaigns, various digital marketing campaigns, other campaigns Centers can opt into, social media campaigns, media production, public relations, efforts to publish research studies, agency costs and other costs for resources or tools for developing marketing for use by Centers. This may include our attendance at trade shows, and we may also reimburse our administrative expenses incurred in administering the Marketing Development Fund. Franchisee acknowledges and agrees that expenditures from the Marketing Development Fund may or may not be proportionate to contributions made by Franchisee or provide a direct or any benefit to Franchisee. The Marketing Development Fund will be spent at Franchisor's sole discretion, and Franchisor has no fiduciary duty with
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are not explicitly required to participate in Multi-Area Marketing Programs. However, Learningrx retains the right to implement these programs, which may include regional pricing and service strategies.
The FDD states that Learningrx has the right to issue mandatory policies to coordinate multi-area marketing programs, including setting minimum or maximum pricing, as legally permitted. While franchisees have the exclusive right to service customers within their territory generated by these Multi-Area Marketing Programs (excluding those generated via the Internet), Learningrx reserves the right to solicit or sell clients through these programs anywhere.
Furthermore, franchisees are obligated to contribute to the Marketing Development Fund (MDF), which supports the development of marketing for the Learningrx system. This contribution is the greater of 3% of the franchisee's gross revenue or a minimum payment of $200 for Micro Franchises and $300 for Standard Franchises, up to a maximum of $15,000 per calendar year. The franchisor has sole discretion over how the MDF is spent, which may include digital marketing campaigns and website development, and these expenditures may not directly benefit each franchisee proportionately.