When does the Minimum Annual Revenue Quota requirement begin for a new Learningrx franchise?
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 Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for any twelve (12) month p
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a new franchisee must meet a Minimum Annual Revenue Quota to maintain their territory. This requirement begins six months after the Learningrx center opens. The specific amount of the quota depends on the population in the franchisee's 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, or a pro-rated portion thereof. For the subsequent 12 months, this quota increases to $75,000 for every 100,000 people. After the first two years, the Minimum Annual Revenue Quota becomes $100,000 for every 100,000 people in the territory for each twelve-month period thereafter.
Failure to meet the Minimum Annual Revenue Quota can have serious consequences for a Learningrx franchisee. According to the FDD, the franchisor may, at its sole discretion, remove the franchisee's territory exclusivity, reduce or eliminate the territory, or even terminate the franchise agreement. This quota system is designed to ensure that franchisees are actively and successfully developing their designated areas.