How often are Learningrx royalty fees due?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 8% of Gross Revenues or the Minimum Monthly Royalty (Notes 2, 3, and 4); adjusted to 7.5% for revenues above $500,000/yr and to 7% for revenues above $750,000/yr (within a calendar year) | Due on the 10th day of each |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the royalty fees are due on the 10th day of each month. This payment covers the prior month's gross revenues. The standard royalty fee is 8% of gross revenues, but Learningrx also stipulates a minimum monthly royalty.
For a Micro Franchise, the minimum monthly royalty is $500, while for a Standard Franchise, it's $800. This minimum royalty applies if 8% of the franchisee's gross revenues does not exceed these amounts. This minimum royalty requirement begins after the Learningrx center has been in operation for six full months.
Learningrx also adjusts the royalty percentage based on annual revenue. The royalty fee is adjusted to 7.5% for revenues above $500,000 per year and further reduced to 7% for revenues exceeding $750,000 per year. These adjustments are calculated within a calendar year, potentially offering franchisees a reduced rate as their business grows.