When does the Minimum Annual Revenue Quota requirement begin for a Learningrx franchisee?
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, a franchisee must meet a Minimum Annual Revenue Quota to maintain their territory. This requirement starts six months after the Learningrx center opens. The specific amount of the quota depends on the population size of the territory.
For the first 12 months after the initial six-month grace period, the Minimum Annual Revenue Quota is $50,000 for every 100,000 people in the territory. This amount is pro-rated for territories with populations that are not exactly 100,000. For the second 12 months, the quota increases to $75,000 for every 100,000 people.
After the first two years, the Minimum Annual Revenue Quota increases again to $100,000 for every 100,000 people in the territory for each subsequent 12-month period. Failure to meet these quotas may result in the loss of territorial exclusivity, reduction or elimination of the territory, or even termination of the franchise agreement, at Learningrx's discretion. This quota system is designed to ensure that franchisees are actively developing their territories and meeting a certain level of performance, which is a fairly common practice in franchising to maintain brand standards and growth.