How is 'Gross Revenue' defined for a Learningrx Center and Satellite Location?

According to Learningrx's 2025 Franchise Disclosure Document, "Gross Revenue" is defined as the total of all receipts derived from services or products sold at both the Learningrx Center and any associated Satellite Location. This includes all forms of payment, whether they are cash, credit, checks, gift certificates, scrip, coupons, services, property, bartering, or other means of exchange. This definition is important because Learningrx calculates royalties based on a percentage of Gross Revenue.

For a Learningrx franchisee operating a Satellite Location, the Gross Revenues from the Satellite Location are combined with the Gross Revenues of the main Learningrx Center to calculate the total royalties owed to Learningrx each month. The franchisee pays one monthly royalty for both the Center and the Satellite Location. This royalty is the greater of either 8% of the combined Gross Revenues or the Minimum Monthly Royalty as defined in the Franchise Agreement.

This combined royalty structure means that the financial performance of both the Learningrx Center and the Satellite Location directly impact the royalty payments. Franchisees need to carefully track all sales and revenue streams from both locations to accurately calculate and remit royalties. The definition's inclusion of various payment methods ensures that all forms of revenue are accounted for when determining the royalty fee.