How is the Minimum Annual Revenue Quota calculated for a Learningrx franchise based on population?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
loper Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the T
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees must meet a Minimum Annual Revenue Quota to maintain their territory. This quota is directly tied to the population size within the franchisee's territory. The minimum revenue required increases over the first two years of operation.
Specifically, starting six months after opening, the franchisee must generate $50,000.00 for every 100,000 people in their territory during the first 12 months. This amount increases to $75,000.00 for every 100,000 people in the territory during the second 12 months. After the second year, the minimum annual revenue quota becomes $100,000.00 for every 100,000 people in the territory for each subsequent 12-month period.
For example, if a Learningrx franchisee operates in a territory with a population of 50,000 people, their minimum annual revenue quota in the first year would be $25,000 (pro-rated from the $50,000 for every 100,000 people). In the second year, it would increase to $37,500, and in subsequent years, it would be $50,000. Failure to meet these quotas can result in the loss of exclusivity, reduction of the territory, or even termination of the franchise agreement, at Learningrx's discretion. This quota system incentivizes franchisees to actively market and provide services to as much of their territory's population as possible to maintain compliance and profitability.