What happens to the balance of accumulated contributions to the Learningrx Advertising Cooperative?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
We may accumulate contributions to the Advertising Cooperative, and the balance may be carried over to subsequent years. We may also loan funds to the Advertising Cooperative at such times and on such terms as we determine, in our discretion. No cooperative funds will be used to sell franchises. The advertising cooperative must prepare annual financial statements, which must be delivered to us and all the franchisees in the cooperative within 120 days after our fiscal year end. As of the last fiscal year, no cooperatives were formed, therefore no monies were spent on advertising or carried forward. We reserve the right to form, change, dissolve, or merge advertising cooperatives in our discretion.
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, Learningrx may accumulate contributions to the Advertising Cooperative, and the balance may be carried over to subsequent years. Learningrx also retains the option to loan funds to the Advertising Cooperative at times and on terms they determine at their discretion. The funds from the cooperative cannot be used to sell franchises.
The advertising cooperative is required to prepare annual financial statements. These statements must be delivered to Learningrx and all franchisees within the cooperative within 120 days after Learningrx's fiscal year end. As of the last fiscal year, no cooperatives were formed, and therefore no monies were spent on advertising or carried forward.
Learningrx reserves the right to form, change, dissolve, or merge advertising cooperatives at their discretion. This gives Learningrx significant control over the advertising efforts and funds within the franchise system. Prospective franchisees should inquire about the specific plans for advertising cooperatives in their region and how these funds will be managed to benefit their Learningrx center.