What is the initial franchise fee for a Learningrx Standard Franchise (Item 5) and what does this fee cover?
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 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.
Additionally, we offer a Satellite Location Addendum, which is available to those existing franchisees that have been in operation for two years under a Franchise Agreement and whom we deem qualified, in our sole discretion. Upon signing of the Addendum, Franchisee must pay a Satellite Location fee of $5,000 ("Satellite Location Fee"), if the Satellite Location is outside of the Territory. The Satellite Location Fee is fully earned upon signing the Addendum and is non-refundable under any circumstances. If the Satellite Location is within the Territory, a reduced Satellite Location Fee of $2,400 will only be due if Franchisee wishes to have to Satellite Location listed on the LearningRx website.
Depending upon the territory size of your LearningRx Center, you must pay us between $2,000 and $3,000 for opening inventory of the student/trainer kits and/or workbooks ("Products"). Each student will need one or more kits and/or workbooks depending on the program. You will be required to purchase student/trainer kits from us on an ongoing basis. The cost of these student/trainer kits/workbooks/digital programs will vary based on the number
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the initial franchise fee for a Standard Franchise is $45,000. This fee is required when the territory contains between 100,000 to 200,000 people. The FDD states that this fee is fully earned upon signing the Franchise Agreement, and is non-refundable under any circumstances.
In addition to the initial franchise fee, Learningrx franchisees must also pay an Initial Training and Materials Fee of $10,000 at the time of signing the Franchise Agreement, which is also non-refundable. Depending on the territory size, franchisees must also pay between $2,000 and $3,000 for opening inventory of student/trainer kits and workbooks. Furthermore, a new Learningrx franchisee will be required to spend between $15,000 and $30,000 for an initial sales and marketing campaign with Learningrx's approved marketing consultant.
Prospective franchisees should note that these initial fees do not cover all the costs associated with starting a Learningrx franchise. Item 7 of the FDD outlines other estimated initial investment costs, such as security deposits, rent, real estate improvements, miscellaneous opening costs, insurance, and computer equipment. These additional costs can vary widely depending on factors like location and economic climate. It is important for potential franchisees to carefully review all the estimated costs and conduct thorough research in their desired area to understand the full financial commitment required.