How is the Initial Franchise Fee for a Learningrx franchise calculated?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments to Franchisor and dollar amounts stated in this Agreement are in U.S. dollars unless otherwise expressed. Franchisor will not require Franchisee to deposit all Franchisee's revenue into an account that Franchisor controls, or from which withdrawals may be made only with Franchisor's consent, except to secure a loan or financing arrangement by Franchisor.
- 5.2 Initial Franchise Fee. Franchisee must pay an initial franchise fee ("Initial Franchise Fee") upon the signing of this Agreement as set forth in Attachment I. The Initial Franchise Fee is calculated based on the number of people residing in Franchisee's Territory. Franchisee must pay an Initial Franchise Fee of Thirty thousand and 00/100 Dollars ($30,000.00) for a Micro Franchise and Forty-five thousand and 00/100 Dollars ($45,000.00) for a Standard Franchise. The Initial Franchise Fee is fully earned upon signing this Agreement and is non-refundable under any circumstances.
- 5.3 Initial Marketing Campaign . Franchisee must also pay for an Initial Marke
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the initial franchise fee is determined by the population within the franchisee's territory. Upon signing the franchise agreement, the franchisee must pay this fee. For a Micro Franchise, the initial franchise fee is $30,000.00, while for a Standard Franchise, it is $45,000.00. This fee is considered fully earned by Learningrx upon signing the agreement and is non-refundable under any circumstances.
In addition to the initial franchise fee, a Learningrx franchisee must also pay for an Initial Marketing Campaign. The cost of this campaign ranges from $15,000.00 to $30,000.00, depending on the size of the territory. This payment is also due upon signing the agreement and covers media, print, public relations, marketing materials, products, and digital marketing services for the opening.
Prospective franchisees should note that the initial franchise fee is non-refundable, representing a significant upfront investment. The size of the territory directly impacts both the initial franchise fee and the marketing campaign costs, so careful consideration of the territory's potential is crucial. Understanding the terms outlined in Attachment I of the franchise agreement, as referenced in the FDD, is essential for any potential Learningrx franchisee.