Do all Learningrx franchises in a cooperative contribute to the fund at the same rates?

According to the 2025 Learningrx Franchise Disclosure Document, all franchises within a local advertising cooperative, including company-owned centers, are required to contribute to the cooperative fund at the same rates. During the first 6 months of operation, a new Learningrx franchise may be required to spend the greater of 3% of gross revenues or 2/3 of the lowest amount paid by another center in the cooperative, but this cannot exceed $3,000 per month.

Beginning in the 7th month of operations, franchisees may be required to spend up to 3% of their gross revenues toward cooperative advertising each month, but this cannot exceed the Maximum Cooperative Advertising Requirement. This requirement can be imposed by the cooperative even if the franchisee is not otherwise required to spend money on local advertising.

It's important to note that Learningrx reserves the right to form advertising cooperatives and require franchisees to join them. The cooperative is administered by a majority vote of the franchisees in the region. The advertising cooperative also assumes responsibility for Yellow Pages advertising in the metropolitan area in which it operates. Learningrx may accumulate contributions to the Advertising Cooperative, and the balance may be carried over to subsequent years. Learningrx may also loan funds to the Advertising Cooperative at such times and on such terms as it determines, in its discretion. No cooperative funds will be used to sell franchises. The advertising cooperative must prepare annual financial statements, which must be delivered to Learningrx and all the franchisees in the cooperative within 120 days after Learningrx's fiscal year end. As of the last fiscal year, no cooperatives were formed, therefore no monies were spent on advertising or carried forward.