What is the minimum monthly royalty fee for a Learningrx Micro Franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ollection method, are used to calculate the royalty amounts due each month.
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- Minimum Monthly Royalty. You are required to pay a "Minimum Monthly Royalty" of $500 for Micro Franchises and $800 for Standard Franchises rather than 8% of your Gross Revenues if 8% of your Gross Revenues does not exceed the Minimum Monthly Royalty applicable to your franchise. This minimum starts after the Center has been in operation for 6 full months. On a quarterly basis, royalty totals paid for the quarter are reviewed, and a Center is credited in the month following the quarter, if the average per month over the quarter exceeded the monthly minimums. Example: If monthly gross revenues for a Standard Franchise are $9,000, $31,000 and $30,000 in a quarter, the minimum of $800 would have been paid in royalties in the first month, but $80 will be cr
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Micro Franchise is required to pay a minimum monthly royalty fee of $500. This minimum royalty payment is applicable if 8% of the Gross Revenues does not exceed $500. This minimum royalty payment begins after the Learningrx center has been in operation for six full months.
Learningrx reviews royalty totals paid on a quarterly basis. If the average monthly royalty paid over the quarter exceeds the minimum, Learningrx will credit the franchisee's account in the month following the quarter. For example, if a Learningrx franchisee with a Standard Franchise pays the minimum royalty of $800 in the first month of the quarter, but then has higher gross revenues in the following two months, resulting in a quarterly royalty total exceeding $2,400, Learningrx will credit the franchisee's account.
This royalty structure means that a Learningrx franchisee must carefully track their gross revenues to ensure they are paying the correct royalty amount. While the minimum royalty provides a predictable baseline, successful franchisees will likely exceed this amount and pay a percentage of their gross revenues. The quarterly review and credit system offers some flexibility, allowing franchisees to adjust for fluctuations in monthly revenue.