How are the Gross Revenues for the Learningrx Satellite Location used to determine royalties?

According to Learningrx's 2025 Franchise Disclosure Document, the gross revenues from a Learningrx Satellite Location are combined with the gross revenues of the franchisee's main Learningrx center to calculate the total royalties owed to Learningrx each month. The franchisee pays a single monthly royalty for both the main center and the satellite location. This royalty is the greater of either 8% of the combined gross revenues from both locations, or the Minimum Monthly Royalty as defined in the Franchise Agreement.

This means that the financial performance of both the main Learningrx center and the satellite location directly impact the royalty fees. A franchisee with a successful satellite location will likely pay higher royalties due to the increased gross revenue. Conversely, a poorly performing satellite location could still result in higher royalty payments if the combined revenue exceeds the threshold for the minimum monthly royalty.

This royalty structure incentivizes Learningrx franchisees to actively manage and promote both their main center and any satellite locations to maximize revenue. It also simplifies the royalty payment process, as franchisees only need to make one monthly payment covering both locations. However, franchisees need to carefully consider the potential financial impact of a satellite location on their overall royalty obligations.