factual

What is the gross revenue threshold for a standard Learningrx franchise that triggers the requirement for a Center marketing plan?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

and digital marketing services. You will have approval of the spending placement of advertising with the funds.

Center Marketing Plan: After the first year, the Center marketing plan will be required of a Center that generates less than $300,000 gross revenue for a standard franchise or $150,000 for a micro franchise for the prev

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, a standard Learningrx franchise is required to have a Center marketing plan if it generates less than $300,000 in gross revenue during a 12-month period after the first year of operation. This requirement is contingent on the franchisee also failing to meet the minimum marketing requirements set by Learningrx during that same 12-month period.

This means that if a Learningrx franchisee with a standard franchise location does not achieve at least $300,000 in gross revenue and also does not meet the franchisor's minimum marketing requirements, they will be required to develop and implement a Center marketing plan. The purpose of this plan is likely to improve the center's performance and ensure compliance with Learningrx's marketing standards.

For a prospective Learningrx franchisee, this highlights the importance of effective marketing and sales strategies from the outset. Failing to meet both the revenue threshold and minimum marketing requirements can trigger additional planning obligations. Franchisees should ensure they understand Learningrx's minimum marketing requirements and have a plan to meet or exceed the $300,000 gross revenue target to avoid being mandated to create a Center marketing plan.

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.