What happens if a Learningrx franchisee fails to maintain the Minimum Annual Revenue Quota?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
loper Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for any twelve (12) month p
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees must meet a Minimum Annual Revenue Quota to maintain their territory. This quota starts six months after opening. For the first 12 months, the quota is $50,000 for every 100,000 people in the territory (or a pro-rated portion). It increases to $75,000 for every 100,000 people for the second 12 months. After that, the quota becomes $100,000 for every 100,000 people in the territory for each subsequent 12-month period.
If a Learningrx franchisee fails to meet the Minimum Annual Revenue Quota, the consequences can be significant. Learningrx has the sole discretion to take actions such as loss of exclusivity for the territory, reduction or elimination of the franchisee's territory, or even termination of the franchise agreement.
This quota system and the potential penalties highlight the importance of thorough market research and business planning before investing in a Learningrx franchise. Prospective franchisees should carefully evaluate the population and demographics of their potential territory to determine if they can realistically meet the revenue targets. It is also important to consider the potential risks and rewards associated with the franchise opportunity and to seek professional advice before making a final decision.