What was the net income for the Learningrx franchise after income taxes 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 the Learningrx Franchise Corporation after income taxes was $7,181 for the year 2023. This figure represents the company's profit after all expenses and income taxes have been deducted from its total income.
For a prospective Learningrx franchisee, this net income figure provides insight into the financial performance of the overall Learningrx franchise system. It is important to note that this is the franchisor's net income, not the net income of an individual franchise location. A franchisee's individual net income would depend on their specific revenues, expenses, and operating costs, which can vary significantly based on location, market conditions, and management effectiveness.
It is also important to consider the components that contribute to Learningrx's net income, such as royalty fees ($1,192,063 in 2023) and initial franchise fees ($162,286 in 2023). Expenses like franchise system expenses ($564,949) and sales expenses ($268,100) also play a significant role in determining the final net income. Reviewing these figures can help a potential franchisee understand the revenue streams and cost factors influencing Learningrx's profitability.
While the franchisor's net income can offer a general indication of financial health, prospective franchisees should focus on the financial performance representations (if any) provided in Item 19 of the FDD, and conduct their own due diligence, including speaking with existing franchisees, to assess the potential profitability of their own Learningrx center.