What is the initial franchise fee for a Learningrx franchise (Item 5) and is it refundable under any circumstances?
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
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, which covers a territory with less than 100,000 people, the initial franchise fee is $30,000. For a standard franchise, covering a territory with 100,000 to 200,000 people, the initial franchise fee is $45,000.
The Learningrx FDD specifies that the initial franchise fee is fully earned upon signing the Franchise Agreement. This means Learningrx recognizes the revenue and incurs the obligation to provide the franchise system access and training.
Importantly, the FDD clearly states that the initial franchise fee is non-refundable under any circumstances. This is a common practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial training and support. Prospective Learningrx franchisees should be aware of this non-refundable policy and carefully consider their decision before signing the Franchise Agreement.