To whom must the Learningrx Local Advertising minimum required amount be paid?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
to you. (See Section 9.03 of the Franchise Agreement).
Advertising Programs
Local Advertising. You are required to promote the franchise and advertise on a local basis. You are required to spend the greater of $2,000 for Micro Franchise and $3,000 for Standard Franchise or 5% of Gross Revenues per month on local advertising and promotion in your Territory. Your entire Local Advertising minimum required amount must be paid to independent third parties. Your failure to spend the Local Advertising amount required may result in the r
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to engage in local advertising and promotion. The minimum spending requirement is the greater of $2,000 for Micro Franchises and $3,000 for Standard Franchises, or 5% of Gross Revenues per month within the franchisee's territory.
The FDD specifies that the entire Local Advertising minimum required amount must be paid to independent third parties. This means franchisees cannot fulfill this requirement by paying Learningrx or its affiliates directly for advertising services. The purpose is to ensure that the advertising spend is genuinely directed towards local promotion through external channels.
Failure to meet the Local Advertising spending requirements may result in Learningrx reducing or eliminating the franchisee's territory, or even terminating the Franchise Agreement. This underscores the importance Learningrx places on franchisees actively promoting their centers within their local markets. Franchisees should carefully budget for these advertising expenses and maintain records of their payments to third-party vendors to demonstrate compliance.