When is the Learningrx Initial Franchise Fee considered fully earned?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
required to be disclosed in this Item.
ITEM 5 INITIAL FEES
The initial franchise fee ("Initial Franchise Fee") varies depending upon the size of the Territory. You pay an Initial Franchise Fee based on the number of people residing in Franchisee's Territory. Franchisee must pay an Initial Franchise Fee of $30,000 for a micro franchise ("Micro Franchise") (less
than 100,000 people), and $45,000 for a standard franchise ("Standard Franchise") (100,000 to 200,000 people). The Initial Franchise Fee is fully earned upon signing of the F
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Initial Franchise Fee is considered fully earned upon the signing of the Franchise Agreement. This fee is non-refundable under any circumstances. The amount of the Initial Franchise Fee varies depending on the territory size. For a Micro Franchise (less than 100,000 people), the fee is $30,000, while for a Standard Franchise (100,000 to 200,000 people), it is $45,000.
This means that once the Franchise Agreement is signed, Learningrx has earned the fee and the franchisee is not entitled to a refund, regardless of any future circumstances. This is a common practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights, providing initial training, and offering support to the new franchisee.
In addition to the Initial Franchise Fee, Learningrx franchisees must also pay an Initial Training and Materials Fee of $10,000, which is also fully earned upon payment and non-refundable. Franchisees may also need to pay a fee for a Satellite Location Addendum, which is $5,000 if the Satellite Location is outside the Territory and is fully earned upon signing the addendum. If the Satellite Location is within the Territory, a reduced fee of $2,400 is due only if the franchisee wants the location listed on the Learningrx website. Prospective franchisees should carefully consider these non-refundable fees and their financial resources before signing any agreements.
Furthermore, Learningrx requires franchisees to pay for an Initial Marketing Campaign, with costs ranging from $15,000 to $30,000 depending on the territory size. This campaign must be spent within 90 days before or after the center's opening. Franchisees should factor in all these initial costs to understand the full financial commitment required to start a Learningrx franchise.