What is the minimum monthly royalty for a Learningrx Micro Franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
an opening marketing opening campaign for media, print, public relations, marketing materials and products, and digital marketing services ("Initial Marketing") of between Fifteen thousand and 00/100 Dollars ($15,000.00) and Thirty thousand and 00/100 Dollars ($30,000.00) (depending on the size of the Territory) and as set forth in Attachment I upon the signing of this Agreement.
- 5.4 Royalties. Franchisee must pay to Franchisor a monthly royalty in the amount of the greater of either (i) eight percent (8
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee operating a Micro Franchise must pay a monthly royalty. This royalty is calculated as the greater of two options. The first option is eight percent (8%) of the Gross Revenues for the preceding calendar month. The second option is a fixed "Minimum Monthly Royalty" of $500.00. Therefore, regardless of revenue, a Learningrx Micro Franchise will always owe at least $500 as a royalty payment each month.
This minimum royalty ensures that Learningrx receives a baseline income from each franchise unit, irrespective of its monthly sales performance. For a prospective franchisee, this means that even in slow months with lower revenues, the $500 minimum royalty must be paid, impacting the franchise's profitability. It is crucial for franchisees to factor this minimum payment into their financial projections and business planning to ensure they can consistently meet this obligation.
The royalty payment is due to Learningrx on the tenth (10th) day of each month, without any prior notice from Learningrx. This fixed due date emphasizes the importance of timely payments to avoid potential late charges or other penalties. The franchisee is required to report royalties in a format specified by Learningrx, ensuring standardized reporting across all franchise locations. This consistent reporting helps Learningrx monitor and manage its royalty income effectively.