What is the Minimum Annual Revenue Quota for a Learningrx franchisee in the second twelve months of operation?
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 begins six months after opening their Learningrx center. For the second twelve months of operation, the minimum annual revenue quota is $75,000 for every 100,000 people in the franchisee's territory. This amount is pro-rated for territories with populations that are not exactly 100,000.
For example, if a Learningrx franchisee has a territory with a population of 50,000, their minimum annual revenue quota for the second twelve months would be $37,500 (half of $75,000). If the territory has a population of 150,000, the minimum annual revenue quota would be $112,500 (1.5 times $75,000).
Failure to meet the minimum annual revenue quota can have serious consequences for a Learningrx franchisee. The franchisor has the right to remove the franchisee's exclusivity, reduce or eliminate the territory, or even terminate the franchise agreement. This makes it crucial for prospective franchisees to carefully evaluate the population and market potential of their territory and develop a solid business plan to achieve the required revenue.