What is the initial franchise fee for a Learningrx franchise (Item 5) and what are the ongoing royalty fees?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchise Agreement, and there are no refunds under any circumstances.
You must also pay an Initial Training and Materials Fee at the time you sign the Franchise Agreement. The Initial Training and Materials Fee is $10,000 and is fully earned upon payment. There are no refunds of the Initial Training and Materials Fee under any circumstances.
Franchisee must pay to Franchisor a monthly royalty in the amount of the greater of either (i) eight percent (8%) of Gross Revenues for the preceding calendar month, or (ii) the "Minimum Monthly Royalty" of Five hundred and 00/100 Dollars ($500.00) for Micro Franchises and Eight hundred and 00/100 Dollars ($800.00) for Standard Franchises.
The royalty payment is due to Franchisor, without notice from Franchisor, on the tenth (10th) day of each month.
Royalties must be reported in a form specified by Franchisor.
You are required to pay a "Minimum Monthly Royalty" of $500 for Micro Franchises and $800 for Standard Franchises rather than 8% of your Gross Revenues if 8% of your Gross Revenues does not exceed the Minimum Monthly Royalty applicable to your franchise. This minimum starts after the Center has been in operation for 6 full months. On a quarterly basis, royalty totals paid for the quarter are reviewed, and a Center is credited in the month following the quarter, if the average per month over the quarter exceeded the monthly minimums. Example: If monthly gross revenues for a Standard Franchise are $9,000, $31,000 and $30,000 in a quarter, the minimum of $800 would have been paid in royalties in the first month, but $80 will be credited to the Center since the quarterly royalty total paid exceeded $2,400.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the initial franchise fee varies based on the territory size. For a Micro Franchise (less than 100,000 people), the initial fee is $30,000, while a Standard Franchise (100,000 to 200,000 people) requires an initial fee of $45,000. This fee is fully earned upon signing the Franchise Agreement and is non-refundable. In addition to the initial franchise fee, franchisees must also pay a $10,000 Initial Training and Materials Fee at the time of signing the Franchise Agreement, which is also non-refundable.
Learningrx franchisees are also obligated to pay ongoing royalties. The monthly royalty fee is the greater of either 8% of Gross Revenues for the preceding calendar month, or a Minimum Monthly Royalty. The Minimum Monthly Royalty is $500 for Micro Franchises and $800 for Standard Franchises. This minimum royalty payment begins after the center has been in operation for six full months.
It's important to note that Learningrx reviews royalty totals paid on a quarterly basis. If the average monthly royalty paid over the quarter exceeds the minimum monthly requirement, the center will be credited the difference. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, the minimum royalty of $800 would be paid in the first month, but $80 will be credited to the center since the quarterly royalty total paid exceeded $2,400.