What is the minimum revenue requirement that a Learningrx franchisee must meet to prevent Learningrx from operating a similar business within their territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchise Agreement. We are not required to pay any compensation to you for soliciting or conducting sales within your Territory.
To maintain your Territory and license you must maintain, starting 6 months after opening, annual minimum Gross Revenues (the "Minimum Revenue Quota") of $50,000.00 for every 100,000 people (or
pro-rated portion of 100,000) in your Territory for the first 12 months, $75,000.00 for every 100,000 people (or pro-rated portion of 100,000) in your Territory for the second 12 months and $100,000.00 for every 100,000 people (or pro-rated portion of 100,000) in your Territory for any 12 month period. If you do not meet the Minimum Revenue Quota as outlined above, you will be subject to lose your territory exclusivity and we may choose to offer a Center location to an additional franchisee with your designated territory. This quota is not, and should not be considered, earnings estimate for your Center or representation regarding your potential earnings as a LearningRx Franchisee. We do not furnish or authorize our sales people to furnish any oral or written information concerning the actual or potential sales, costs, income or profits of a Center. Actual results vary from Center to Center and we cannot estimate the results of any particular franchise. If you fail to meet your Minimum Revenue Quota, we have the r
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Learningrx franchisee must meet a minimum annual gross revenue quota to maintain their territory and license. This requirement begins six months after the center opens. The minimum revenue is calculated based on the population within the franchisee's territory. For the first 12 months, the franchisee must generate $50,000 for every 100,000 people in their territory. This amount increases to $75,000 for every 100,000 people during the second 12 months. After the initial two years, the minimum revenue quota is $100,000 for every 100,000 people in the territory for each subsequent 12-month period. These amounts are pro-rated for territories with populations that are not exact multiples of 100,000.
If a Learningrx franchisee fails to meet the minimum revenue quota, they risk losing their territory exclusivity. In such cases, Learningrx reserves the right to offer a franchise location to another franchisee within the original franchisee's designated territory. The FDD emphasizes that this minimum revenue quota should not be interpreted as an earnings estimate or a guarantee of potential earnings, as actual results can vary significantly from center to center.
In addition to the risk of losing territory exclusivity, Learningrx has further rights if a franchisee fails to meet the minimum revenue quota. Learningrx can mandate local advertising expenditures to help improve the center's performance. If the revenue deficiency persists, Learningrx may reduce the franchisee's territory size or even terminate the franchise agreement altogether. This highlights the importance of meeting the minimum revenue requirements to maintain the franchise's territory and avoid potential penalties.