How often must a Learningrx franchisee pay royalties for both the Center and Satellite Location?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The Gross Revenues for the Satellite Location shall be added to the Gross Revenues of Franchisee's Center to determine the Royalties owed to Franchisor each month.
Therefore, Franchisee must pay to Franchisor one (1) monthly royalty for both the Center granted to it under the Franchise Agreement and the Satellite Location granted to it under this Addendum, of the greater of either (i) eight percent (8%) of the combined Gross Revenues for its Center and its Satellite Location, or (ii) the Minimum Monthly Royalty, as defined in the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee must pay royalties on a monthly basis. The gross revenues from the Satellite Location are combined with the gross revenues from the franchisee's main Learningrx center. The franchisee then pays one monthly royalty to Learningrx.
The monthly royalty is calculated as the greater of two options: either eight percent of the combined gross revenues from both the main center and the satellite location, or the Minimum Monthly Royalty as defined in the Franchise Agreement. This means that the royalty payment will fluctuate depending on the sales performance of both locations, but it will never fall below the minimum monthly amount.
This royalty structure incentivizes Learningrx franchisees to actively manage and promote both their main center and any satellite locations to maximize revenue. Franchisees should carefully review the definition of "Gross Revenue" in the Franchise Agreement to fully understand what receipts are subject to the royalty fee. Additionally, franchisees should be aware of the Minimum Monthly Royalty to accurately forecast their monthly expenses.