When does the minimum monthly royalty requirement begin for a new Learningrx center?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisee is required to pay a minimum monthly royalty starting after the center has been in operation for six full months. The minimum monthly royalty is $500 for Micro Franchises and $800 for Standard Franchises. This minimum applies if 8% of the Gross Revenues does not exceed these amounts.
Learningrx reviews royalty totals paid on a quarterly basis. If the average per month over the quarter exceeded the monthly minimums, the center will be credited in the month following the quarter. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, the franchisee would have paid the minimum royalty of $800 in the first month. However, $80 will be credited to the center because the quarterly royalty total paid exceeded $2,400.
This policy ensures that Learningrx franchisees contribute a base royalty amount while also providing an opportunity for credit if their revenues significantly exceed the minimum threshold over a quarterly period. Prospective franchisees should carefully consider these minimums and how they align with their projected revenue during the initial months of operation.