What was the net income for Learningrx in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
n ended in accordance with accounting principles generally | | | | | | accepted in the United States of America. | | | | |
LearningRx Franchise Corporation Statements of Income For the Years Ended September 30, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Income | ||
| Royalty fees | $ 1,192,359 | $ 1,192,063 |
| Initial franchise fees | 114,551 | 162,286 |
| Area development fees | 9,769 | 6,200 |
| Technology and training fees | 113,401 | 112,854 |
| Transfer fees | 24,500 | - |
| Renewal fees | 7,000 | 7,000 |
| Materials fees | 15,888 | 16,479 |
| Marketing fees | 73,535 | 17,418 |
| Interest and other income | 20,726 | 5,295 |
| Total Income | 1,571,729 | 1,519,595 |
| Expenses | ||
| Bad debt | 29,764 | - |
| Depreciation | 898 | 898 |
| Franchise system expenses | 615,225 | 564,949 |
| Marketing and development | 50,212 | 34,373 |
| Outside consultants | 104,033 | 105,341 |
| Overhead | 79,864 | 133,279 |
| Professional fees | 67,938 | 90,734 |
| Rent | 60,000 | 80,000 |
| Research and development | 24,000 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the net income for Learningrx in 2023 was $7,181. This figure represents the company's profit after all expenses, including income taxes, have been deducted from its total income for the fiscal year. The document provides a comparative view, showing the net income alongside other financial metrics for both 2024 and 2023. This allows prospective franchisees to assess the financial performance and stability of Learningrx over these two years.
Specifically, the FDD reveals that Learningrx's total income in 2023 was $1,519,595, while total expenses amounted to $1,500,933. After subtracting expenses from income, the net income before income taxes was $18,662. However, after accounting for income tax expenses of $11,481, the final net income was $7,181.
It's important for potential franchisees to consider this net income figure in the context of Learningrx's overall financial health and trends. While the net income for 2023 was positive, it was significantly lower than the $169,308 net income reported for 2024. This difference could be due to various factors, such as changes in revenue, increased expenses, or fluctuations in tax liabilities. A thorough review of the complete financial statements and discussions with Learningrx's management team are advisable to understand the underlying reasons for these changes and to assess the potential financial risks and opportunities associated with investing in a Learningrx franchise.