What is the purpose of the Learningrx Marketing Development Fund (MDF)?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing Development Fund ("MDF") | 3% of Gross Revenues per month, or the Minimum MDF Payment, up to a maximum of $15,000 per calendar year per Center (Note 6) | Due on the 10th day of each month for the prior month's Gross Revenues | Required of all Franchisees. MDF includes the development of: marketing materials, public relations materials, a local Center website, materials for & national outreach to professionals, digital marketing materials and systems, a national website, and other websites. This fund also invests in efforts to publish research studies, hosting, social media management, reputation management, and national SEO efforts for the various web properties. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Marketing Development Fund (MDF) is used for several marketing and public relations initiatives. All Learningrx franchisees are required to contribute to this fund. The MDF supports the development of marketing and public relations materials, as well as materials for national outreach to professionals. It also funds the creation and maintenance of local center websites, digital marketing materials and systems, and a national website, along with other websites.
Specifically, the Learningrx MDF invests in publishing research studies, hosting services, social media management, reputation management, and national search engine optimization (SEO) efforts for various web properties. Franchisees must pay into the MDF 3% of Gross Revenues per month, or a minimum payment. The minimum payment is $200 for Micro Franchises and $300 for Standard Franchises, up to a maximum of $15,000 per calendar year per center.
Payments to the Learningrx Marketing Development Fund are due at the same time and in the same manner as royalty fees. On a quarterly basis, the total MDF payments are reviewed, and a center may receive a credit if the average monthly payment over the quarter exceeded the minimum monthly requirements. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, they would pay the minimum of $270 in MDF fees in the first month. However, $70 will be credited back to the center because the quarterly royalty total paid exceeded $600.
This structure ensures that Learningrx has a dedicated fund to support marketing efforts at both the local and national levels, which can benefit all franchisees by increasing brand awareness and generating leads. The potential for a credit based on quarterly revenue fluctuations provides some flexibility for franchisees, particularly those with variable income streams.