What is the initial Minimum Annual Revenue Quota for a Learningrx franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
loper Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portio
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees must meet a Minimum Annual Revenue Quota to maintain their territory. This quota begins six months after opening. For the first 12 months, the minimum annual revenue required is $50,000 for every 100,000 people in the franchisee's territory, or a pro-rated portion thereof.
In the subsequent 12 months, this quota increases to $75,000 for every 100,000 people in the territory, or a pro-rated portion. After the initial two years, the minimum annual revenue quota further increases to $100,000 for every 100,000 people in the territory for each following 12-month period.
Failure to meet these minimum revenue quotas can have significant consequences for a Learningrx franchisee. The franchisor has the discretion to take actions such as revoking the franchisee's exclusive territory rights, reducing or eliminating the territory size, or even terminating the franchise agreement altogether. This quota system is designed to ensure that franchisees are actively and successfully developing their territories, but it also places considerable pressure on franchisees to perform from relatively early in the franchise term.