Is the Marketing Development Fund (MDF) contribution required for all Learningrx franchisees?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
evelopment Territory.
ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 8% of Gross Revenues or the Minimum Monthly Royalty (Notes 2, 3, and 4); adjusted to 7.5% for revenues above $500,000/yr and to 7% for revenues above $750,000/yr (within a calendar year) | Due on the 10th day of each month for the prior month's Gross Revenues | Required of all Franchisees. |
| Marketing Development Fund ("MDF") | 3% of Gross Revenues per month, or the Minimum MDF Payment, up to a maximum of $15,000 per calendar year per Center (Note 6) | Due on the 10th day of each month for the prior month's Gross Revenues | Required of all Franchisees. MDF includes the development of: marketing materials, public relations materials, a local Center website, materials for & national outreach to professionals, digital marketing materials and systems, a national website, and other websites. This fund also invests in efforts to publish research studies, hosting, social media management, reputation management, and national SEO efforts for the various web properties. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, payment into the Marketing Development Fund (MDF) is required of all franchisees. The MDF contribution is the greater of either 3% of gross revenues per month, or a minimum payment. The minimum MDF payment is $200 for Micro Franchises and $300 for Standard Franchises. The maximum contribution is capped at $15,000 per calendar year per center. These payments are due on the 10th day of each month for the prior month's gross revenues, the same as the royalty fee.
The MDF is used for various marketing and public relations efforts, including the development of marketing materials, public relations materials, a local center website, materials for national outreach to professionals, digital marketing materials and systems, a national website, and other websites. The fund also invests in efforts to publish research studies, hosting, social media management, reputation management, and national SEO efforts for the various web properties.
Franchisees should note that the Learningrx reviews MDF totals paid quarterly. If the average monthly payment over the quarter exceeded the minimum monthly requirements, the Learningrx will credit the franchisee's account in the following month. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, they would pay the minimum of $270 in MDF fees in the first month. However, $70 will be credited back to the center because the quarterly royalty total paid exceeded $600.