When is the Marketing Development Fund (MDF) payment due for a Learningrx franchise?
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. |
| Boost Marketing Program | Up to $3,000 per year (Note 4) | As Incurred | Includes local SEO services, local call and lead tracking, local web directories, local review sites, and reputation management services. Required of all Franchisees. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Marketing Development Fund (MDF) payment is due on the 10th day of each month for the prior month's gross revenues. This payment schedule aligns with that of the Royalty Fee, ensuring a consistent and predictable financial obligation for franchisees. The MDF requires franchisees to pay the greater of either 3% of gross revenues per month or a minimum payment, which 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.
The MDF is used for various marketing initiatives, including the development of marketing and public relations materials, local center websites, outreach to professionals, digital marketing, national websites, and research studies. It also covers hosting, social media management, reputation management, and national SEO efforts. This comprehensive approach aims to support both local and national marketing efforts, enhancing brand visibility and driving customer acquisition for all Learningrx centers.
Learningrx reviews MDF totals paid on a quarterly basis. If a center's average monthly payment over the quarter exceeds the minimum monthly requirements, the center will receive a credit in the month following the quarter. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, the minimum MDF payment of $300 would be paid in the first month. However, a credit of $70 will be applied to the center because the quarterly royalty total paid exceeded $900 (3 months x $300 minimum). This system ensures that franchisees are not overpaying into the MDF and that contributions align with actual revenue performance.