What is the minimum royalty fee for Learningrx, based on combined Gross Revenues?
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, franchisees must pay a monthly royalty fee. The royalty is calculated as the greater of either 8% of gross revenues for the preceding calendar month, or a minimum monthly royalty amount. For Micro Franchises, the minimum monthly royalty is $500.00, while for Standard Franchises, it is $800.00. Therefore, the minimum royalty fee depends on the type of franchise a franchisee operates.
For a Learningrx franchisee operating a Micro Franchise, even if their gross revenues are very low, they must still pay a minimum royalty of $500.00 each month. Similarly, a Standard Franchise must pay at least $800.00 per month, regardless of revenue. This ensures that Learningrx receives a baseline income from each franchise unit, irrespective of its monthly performance.
The royalty payment is due to Learningrx on the tenth day of each month, without any prior notice from the franchisor. Franchisees are also required to report their royalties in a format specified by Learningrx. This standardized reporting helps Learningrx maintain consistency and accuracy in their financial tracking.
If a Learningrx franchisee also operates a Satellite Location, the gross revenues from both the main center and the satellite location are combined to calculate the royalty fee. The franchisee pays one monthly royalty for both locations, based on the combined gross revenues, subject to the same minimum royalty fees applicable to the franchise type (Micro or Standard).