What happens if a Learningrx franchisee fails to pay the accounting software fee on time?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
for your computer, either from the system supplier or a third-party service provider, but you are not required to do so.
You must utilize our proprietary software consisting of a contact manager, student tracking, and accounting software. You will be required to use a specific accounting software designated by us for entry of all income and expenses for your Center. You may be required to pay a fee directly to the accounting software company for this accounting software. If you are required to pay a fee directly to the accounting software company in order to use the software, then you must keep an active payment method on file or Franchisor will make the payment if not made on time and your Center will be charged for Franchisor's payment and fined in accordance with the Operations Manual. The cost for these technologies ("Technology Fee") is from $1,800.00 to $2,400.00 (depending on the size of your territory) per year and is payable in four equal installments due on the 1st day of the 1st quarter you are open for business for the prior quarter. If a Center opens in the middle of a quarter, the Technology Fee is then calculated based on a pro-rated portion of the quarter the Center is open. For example, if a Standard Franchise Center opens May 1, the fee would be $400.00 (for 2/3 of the quarter). If the Center opens May 15, the fee will be $300.00 (for 1/2 of the quarter) when debited in July for the 2nd quarter fees). The required software system will be used to perform various functions including sales, accounting, management, and student functions. The system will also be used to record sales made at your Center and we will have independent access to data recorded in the system. There is no contractual limitation on our right to access your system, but we will only access business data and will not access personal data stored on the computer. We reserve the right to change the technology systems you are required to use and to adjust the Technology Fee from time to time at our discretion upon reasonable notice to you. Except for our obligation to provide maintenance to the software, neither we, our affiliates, nor any third parties, are required to provide ongoing maintenance, repairs, upgr
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, franchisees are required to use a specific accounting software designated by Learningrx for entering all income and expenses. Franchisees may be required to pay a fee directly to the accounting software company for this software. The Technology Fee, which covers the proprietary software, ranges from $1,800.00 to $2,400.00 per year, depending on the territory size, and is payable in four equal installments. These installments are due on the 1st day of the quarter the Learningrx center is open for business. If a center opens mid-quarter, the fee is pro-rated. For example, a Standard Franchise Center opening on May 1 would owe $400.00 (for 2/3 of the quarter). If the center opens May 15, the fee will be $300.00 (for 1/2 of the quarter) when debited in July for the 2nd quarter fees).
If a Learningrx franchisee is required to pay the accounting software company directly, they must maintain an active payment method on file. If payment is not made on time, Learningrx will make the payment on behalf of the franchisee. However, the franchisee's center will then be charged for Learningrx's payment and also fined, with the specific fine amount determined in accordance with the Operations Manual.
This policy ensures that all Learningrx centers maintain consistent accounting practices by using the designated software. It also protects Learningrx's access to financial data from each center. Franchisees should be aware of the due dates for the Technology Fee and ensure their payment method is up-to-date to avoid incurring additional charges and fines. The Operations Manual will provide further details on the fine amount for late payments.