Is Internet marketing part of the Learningrx Marketing Development Fund?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
isor, in Franchisor's sole discretion. Franchisor may also utilize the Marketing Development Fund to reimburse itself for administrative expenses incurred in administering the Marketing Development Fund. An unaudited annual financial statement of the Marketing Development Fund will be prepared within one hundred twenty (120) days of the close of Franchisor's fiscal year and will be available to Franchisee upon reasonable request.
Franchisee must also participate, at Franchisee's expense, in any Multi-Area Marketing Programs as determined by Franchisor. All expenditures will be reported to Franchisor at such times and in such manner as Franchisor specifies, including by electronic means. Franchisee may not advertise in any media with a primary circulation outside Franchisee's Territory, except with Franchisor's written consent and with the consent of any franchisee whose territory is reached by the media. However, Franchisee may advertise in media whose circulation is primarily inside Franchisee's Territory, even if it also reaches outside Franchisee's Territory. Internet marketing is a part of the Marketing Development Fund and must be coordinated through and approved by Franchisor. Franchisee may not market independently on the Internet or acquire an independent Internet domain name or Website, but Franchisor will include Franchisee's Center on its Website.
- 9.3 Initial Marketing Campaign. Franchisee is required to pay for an Initial Marketing Campaign of between Fifteen thousand and 00/100 Dollars ($15,000.00) and Thirty thousand and 00/100 Dollars ($30,000.00), depending on the size of the Territory and as indicated in Attachment I for an initial sales and marketing opening campaign with Franchisors approved marketing consultant for media, print, and marketing materials and products, and brand management.
- 9.4 Local Advertising. Franchisee is required to promote the franchise and advertise on a local basis. Franchisee will be required to spend the greater of Two thousand Dollars ($2,000.00) for a Micro Franchise and Three thousand and 00/100 Dollars ($3,000.00) for a Standard Franchise or five percent (5%) of Gross Revenues per month on local advertising and promotion. Franchisee's entire Local Advertising minimum required amount must be paid to independent third parties. Franchisee's failure to spend the Local Advertising amount required may result in the reduction or elimination of the Franchisee's Territory or the termination of this Agreement, in Franchisor's sole discretion.
- 9.5 Boost Marketing Program. Franchisee must spend up to Three thousand and 00/100 Dollars ($3,000.00) per year for Boost marketing activities such as web directories, reputation management and other Boost marketing activities, initiated by and paid to Franchisor. This amount is in addition to any other advertising requirement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Internet marketing is indeed a component of the Marketing Development Fund. As a Learningrx franchisee, you are not allowed to independently engage in Internet marketing or create your own website. Instead, all Internet marketing efforts must be coordinated through and approved by Learningrx. However, Learningrx will include your center on its website.
The Marketing Development Fund is used for various development expenses, including the development and maintenance of websites, Internet marketing, Pay-Per-Click campaigns, various digital marketing campaigns, social media campaigns, and other campaigns that Learningrx centers can opt into. The funds are also used for media production, public relations, efforts to publish research studies, agency costs, and other resources or tools for developing marketing materials for use by the centers.
Learningrx maintains control over how the Marketing Development Fund is spent, and these expenditures may not always directly benefit each franchisee in proportion to their contributions. The franchisor does not have a fiduciary duty with regard to the Marketing Development Fund. Franchisees are also required to participate in any Multi-Area Marketing Programs as determined by Learningrx, and all expenditures must be reported to Learningrx.