How often does a Learningrx franchisee pay the Marketing Development Fund contribution?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
on its Website, as set forth in Section 9.02.
9. SOLICITATION AND ADVERTISING
- 9.1 Solicitation. Except as stated in this paragraph, Franchisee may not directly market to or solicit customers who reside outside the Territory. However, Franchisee will have the exclusive right to service customers within the Territory generated by Multi-Area Marketing Programs except through the Internet.
- 9.2 Marketing Development Fund. Franchisee must pay a fee into the Marketing Development Fund to develop marketing for the System. Franchisee will pay a Marketing Development Fund contribution equal to the greater of either (i) three percent (3%) per month of Franchisee's Gross Revenue, or, the "Minimum MDF Payment" of Two hundred and 00/100 Dollars ($200.00) for Micro Franchises and Three hundred and 00/100 Dollars ($300.00) for Standard Franchises, up to a maximum of Fifteen thousand and 00/100 Dollars ($15,000.00) per calendar year per Center, at the same time and in the same manner as the Royalty Fee. Company and Affiliate owned Centers will contribute to the Fund on the same basis as Franchisees. Franchisor will hold the Marketing Development Fund contributions in a separate bank account. Franchisor will use the Marketing Development Fund for development expenses such as the creation of marketing and sales tools for centers, development and maintenance of websites and Internet marketing, creating Pay-Per-Click campaigns, various digital marketing campaigns, other campaigns Centers can opt into, social media campaigns, media production, public relations, efforts to publish research studies, agency costs and other costs for resources or tools for developing marketing for use by Centers. This may include our attendance at trade shows, and
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Marketing Development Fund (MDF) on a monthly basis. This contribution is due at the same time and in the same manner as the royalty fee.
The amount a Learningrx franchisee pays into the Marketing Development Fund is the greater of two options: either 3% of the franchisee's gross revenue per month, or a fixed minimum amount. The minimum payment is $200 per month for Micro Franchises and $300 per month for Standard Franchises. The maximum contribution a franchisee will pay into the fund is $15,000 per calendar year per center.
The funds collected are used at Learningrx's discretion for marketing and sales initiatives, including website development, digital marketing campaigns, social media, public relations, and research studies. While franchisees contribute to the fund, Learningrx does not guarantee that the expenditures will be proportionate to individual contributions or provide direct benefit to each franchisee. An unaudited annual financial statement of the Marketing Development Fund will be available to franchisees upon reasonable request.