Is the reduced Learningrx royalty fee based on a calendar year?

According to Learningrx's 2025 Franchise Disclosure Document, the reduced royalty fee is indeed based on a calendar year. The standard royalty fee is 8% of gross revenues, but Learningrx offers reduced rates for higher revenue centers. Specifically, the royalty fee is adjusted to 7.5% for revenues exceeding $500,000 per year and further reduced to 7% for revenues above $750,000 per year. These adjustments are explicitly stated to occur 'within a calendar year'.

This calendar year calculation means that Learningrx franchisees have the opportunity to lower their royalty payments as their annual revenue increases. This provides a direct incentive for franchisees to grow their business and maximize their earnings within each calendar year. The reduced royalty fees are not cumulative across multiple years; instead, the revenue is evaluated annually, starting each January, to determine the applicable royalty rate.

For a prospective Learningrx franchisee, this structure offers a potential financial benefit as the center matures and generates higher revenues. It's important to note that the reduced royalty rates are tied to specific revenue thresholds achieved within a single calendar year. Franchisees should carefully track their revenue throughout the year to understand when they qualify for the lower royalty rates and factor this into their financial planning and projections.