factual

Is a Learningrx franchisee required to use a specific accounting software?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

for your computer, either from the system supplier or a third-party service provider, but you are not required to do so.

You must utilize our proprietary software consisting of a contact manager, student tracking, and accounting software. You will be required to use a specific accounting software designated by us for entry of all income and expenses for your Center. You may be required to pay a fee directly to the accounting software company for this accounting software. If you are required to pay a fee directly to the accounting software company in order to use the software, then you must keep an active payment method on file or Franchisor will make the payment if not made on time and your Center will be charged for Franchisor's payment and fined in accordance with the Operations Manual. The cost for these technologies ("Technology Fee") is from $1,800.00 to $2,400.00 (depending on the size of your territory) per year and is payable in four equal installments due on the 1st day of the 1st quarter you are open for business for the prior quarter. If a Center opens in the middle of a quarter, the Technology Fee is then calculated based on a pro-rated portion of the quarter the Center is open. For example, if a Standard Franchise Center opens May 1, the fee would be $400.00 (for 2/3 of the quarter). If the Center opens May 15, the fee will be $300.00 (for 1/2 of the quarter) when debited in July for the 2nd quarter fees). The required software system will be used to perform various functions including sales, accounting, management, and student functions. The system will also be used to record sales made at your Center and we will have independent access to data recorded in the system. There is no contractual limitation on our right to access your system, but we will only access business data and will not access personal data stored on the computer. We reserve the right to change the technology systems you are required to use and to adjust the Technology Fee from time to time at our discretion upon reasonable notice to you. Except for our obligation to provide maintenance to the software, neither we, our affiliates, nor any third parties, are required to provide ongoing maintenance, repairs, upgr

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 26–33)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to use a specific accounting software designated by Learningrx for entering all income and expenses related to their center. This software is part of a proprietary system that includes contact management and student tracking.

Franchisees may be required to pay a fee directly to the accounting software company for the use of this software. The cost for these technologies, referred to as the "Technology Fee," ranges from $1,800.00 to $2,400.00 per year, depending on the size of the franchisee's territory. This fee is payable in four equal installments, due on the 1st day of each quarter. If a franchisee fails to make a timely payment, Learningrx reserves the right to make the payment on their behalf and charge the franchisee, along with a fine as outlined in the Operations Manual.

Learningrx also reserves the right to modify the required technology systems and adjust the Technology Fee, providing reasonable notice to franchisees. While Learningrx is obligated to provide maintenance to the software, neither Learningrx, its affiliates, nor any third parties are required to provide ongoing maintenance, repairs, upgrades, or updates to the system. Currently, there are no optional or required maintenance/upgrade contracts for the system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.