What is the relationship between the initial franchise fee for a Learningrx Standard Franchise described in Item 5 and the estimated initial investment for a Standard Franchise in Item 7?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure(1) | Satellite Location Population Varies in 10-mile radius | Micro Franchise “under” to below 100k in 10-mile radius | Standard Franchise 100k plus in 10-mile radius | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise | $5,000 | $30,000 | $45,000 | Us |
| Fee(2) | ||||
| Travel and Living Expenses While Training(3) | $0 | $3,000 | $3,000 | Airlines, hotels, car rental and restaurants |
| Initial Training & | $0 | $10,000 | $10,000 | Us |
| Materials Fee(4) | ||||
| Initial Marketing | $15,000 | $15,000 | $30,000 | Third-party vendors |
| Campaign(5) | ||||
| Security Deposit, First Month’s Rent or Real Estate & Improvements(6) | $15,000 | $22,000 | $30,000 | Landlord and third- party vendors |
| Furniture & | $10,000 | $15,000 | $25,000 | Third-party vendors |
| Fixtures | ||||
| Signage | $5,000 | $5,000 | $5,000 | Third-party vendors |
| Miscellaneous | $1,000 | $2,000 | $3,000 | Suppliers, utilities, |
| Opening Costs(7) | third-party vendors | |||
| Insurance | $1,500 | $2,000 | $3,000 | Insurance carrier |
| Policies*(8) | ||||
| Computer | $2,500 | $4,000 | $6,000 | Third-party vendors |
| Equipment & | ||||
| Proprietary | ||||
| Software(9) | ||||
| Additional Funds (initial three months)(10) | $20,000 | $40,000 | $60,000 | Suppliers, third-party vendors, etc. |
| TOTALS | $75,000 | $148,000 | $220,000 |
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the initial franchise fee for a Standard Franchise is a component of the total estimated initial investment. Item 5 specifies that the initial franchise fee for a Standard Franchise is $45,000, which is paid upon signing the Franchise Agreement. This fee is non-refundable. Item 7 includes this $45,000 initial franchise fee as part of the overall estimated initial investment for opening a Standard Franchise.
The estimated initial investment for a Standard Franchise totals $220,000. This total encompasses various expenses beyond just the initial franchise fee. These additional costs include travel and living expenses while training ($3,000), the initial training and materials fee ($10,000), the initial marketing campaign ($30,000), security deposits and rent ($30,000), furniture and fixtures ($25,000), signage ($5,000), miscellaneous opening costs ($3,000), insurance ($3,000), computer equipment and software ($6,000), and additional funds for the first three months of operation ($60,000).
Therefore, while the initial franchise fee is a significant upfront cost, it represents only a portion of the total investment required to start a Learningrx Standard Franchise. A prospective franchisee should carefully review all components of the estimated initial investment to understand the full financial commitment involved.