Does Learningrx provide material benefits to Franchisees based on their use of designated or approved suppliers?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide material benefits, such as renewing or granting additional franchises, to Franchisees based on their use of designated or approved suppliers.
You must purchase certain marketing materials, equipment, services, supplies, and materials used to operate your franchise from our approved or designated suppliers as indicated in the Operations Manual. For example, for any agreements signed on or after January 1, 2019, Centers are required to use our designative merchant services provider, as specified in the Operations Manual, for receiving payments from clients at your Center. If you would like to purchase items from another supplier, you may request our "Supplier Approval Criteria and Request Form." At no cost to you, upon receipt of the Supplier Approval Criteria and Request Form, we will study the proposed product or service, and within 30 days approve or disapprove the proposed supplier. We base our approval on a number of factors including vendor reputation, quality of products, delivery performance, and credit rating. However, we reserve the right to determine, in our sole discretion, whether the materials meet our standards and specifications. If you do not receive an approval within 30 days, your request will be deemed disapproved.
We expect to derive some income from Franchisees' required purchases from designated and approved suppliers in the next and following fiscal years through a program of rebates from some of our designated or approved suppliers. These rebates serve to partially reimburse us for our costs in the initial sourcing, approval and ongoing monitoring of compliance with our quality standards by our suppliers, but we may receive rebates in excess of our cost to source, approve and monitor suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx does not provide material benefits, such as renewing or granting additional franchises, to franchisees based on their use of designated or approved suppliers. However, franchisees are required to purchase certain marketing materials, equipment, services, supplies, and materials from Learningrx's approved or designated suppliers.
Learningrx does expect to derive some income from franchisee purchases from designated and approved suppliers in the next and following fiscal years through rebates from some of their designated or approved suppliers. These rebates serve to partially reimburse Learningrx for their costs in the initial sourcing, approval, and ongoing monitoring of compliance with their quality standards by their suppliers. However, Learningrx may receive rebates in excess of their cost to source, approve, and monitor suppliers.
For agreements signed on or after January 1, 2019, Learningrx Centers are required to use their designative merchant services provider for receiving payments from clients at their Center. If a franchisee would like to purchase items from another supplier, they may request Learningrx's "Supplier Approval Criteria and Request Form." At no cost to the franchisee, upon receipt of the Supplier Approval Criteria and Request Form, Learningrx will study the proposed product or service, and within 30 days approve or disapprove the proposed supplier. Learningrx bases their approval on a number of factors including vendor reputation, quality of products, delivery performance, and credit rating. However, Learningrx reserves the right to determine, in their sole discretion, whether the materials meet their standards and specifications. If a franchisee does not receive an approval within 30 days, their request will be deemed disapproved.