What is the 'Interim Period Fee' for a Learningrx franchise, and when is it applicable?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
or the renovation and modernization of the Center, signs, vehicles, or any other required equipment to reflect the then-current image of Franchisor.
- 3.5 Renewal Franchise Fee. Upon signing a Renewal Franchise Agreement, Franchisee will not be required to pay another Initial Franchise Fee but will be required to pay the then-current Renewal franchise fee.
3.6 Interim Period. If Franchisee does not sign a new Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one (1) party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate thirty (30) days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period. In addition, Franchisee acknowledges that Franchisee is obligated to pay the Interim Period Fee (as defined below) for each month during any Interim Period. The Interim Period Fee will be in addition to all other fees and costs payable by Franchisee pursuant to this Agreement.
4. TERRITORY
- 4.1 Location. Franchisee may operate the franchised Business only at the Premises as designated in Attachment I to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, an 'Interim Period Fee' is applicable if a franchisee continues to operate under the Learningrx system after the expiration of their franchise agreement but before signing a new agreement. This period is considered a month-to-month extension of the original agreement, at Learningrx's discretion.
During the first six months of this 'Interim Period', the franchisee must pay Learningrx an Interim Period Fee of $250.00 per month, due on the tenth day of each month. After the first six months, this fee increases to $500.00 per month. This fee is in addition to all other fees and costs payable under the original franchise agreement.
This policy ensures that Learningrx continues to receive compensation while the franchisee benefits from the Learningrx system and brand during the negotiation or transition period. It also incentivizes franchisees to renew their agreements promptly to avoid the additional fees associated with the interim period. Franchisees should be aware of these terms to properly plan for potential renewal costs and timelines.