How is the Marketing Development Fund (MDF) fee calculated for a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
requirements for the past 12 months.
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- Marketing Development Fund (MDF). You are required to pay the greater of either (i) 3% of Gross Revenues per month, or (ii) the or the "Minimum MDF Payment" of $200 for Micro Franchises and $300 for Standard Franchises, up to a maximum of $15,000 per calendar year per Center into the Marketing Development Fund. Payment into the Fund is due in the same time and manner as the Royalty Fee. On a quarterly basis, Marketing Development Fund totals paid for the quarter are reviewed, and a Center is credited in the month following the quarter, if the average per month over the quarter exceeded the monthly minimums. Example: If monthly gross revenues for a Standard Franchise are $9,000, $31,000 and $30,000 in a quarter, the minimum of $270 would have been paid in MDF fees in the 1st month, but $70 will be
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to contribute to a Marketing Development Fund (MDF). The MDF fee is calculated as the greater of either 3% of monthly Gross Revenues or a minimum payment. The minimum MDF payment is $200 for Micro Franchises and $300 for Standard Franchises. The maximum contribution to the MDF is capped at $15,000 per calendar year per center. This fee is due on the 10th day of each month for the prior month's Gross Revenues.
To clarify with an example, if a Learningrx Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, the franchisee would pay a minimum of $270 in MDF fees for the first month. However, because the quarterly royalty total paid exceeds $600, a credit of $70 will be applied to the center. This mechanism ensures that franchisees are not overcharged if their gross revenues fluctuate significantly month to month.
The Marketing Development Fund is used for various marketing initiatives, including the development of marketing and public relations materials, local center websites, outreach to professionals, digital marketing, national website maintenance, research studies, social media management, reputation management, and national SEO efforts. These contributions are mandatory for all Learningrx franchisees and are intended to support both local and national marketing efforts to benefit the entire franchise system.