How are royalty amounts calculated each month for a Learningrx franchise?

According to the 2025 Learningrx Franchise Disclosure Document, franchisees must pay a monthly royalty fee. The royalty is calculated as the greater of either 8% of gross revenues for the preceding calendar month, or a fixed minimum monthly royalty amount. For Micro Franchises, the minimum monthly royalty is $500.00, while for Standard Franchises, it is $800.00. The royalty payment is due on the tenth day of each month without notice from Learningrx, and must be reported in a format specified by Learningrx.

For a Learningrx franchisee, this means that even if the center has a slow month with low revenue, they are still obligated to pay the minimum royalty fee. Conversely, in months with high gross revenues, the royalty payment will increase proportionally. It is important for prospective franchisees to factor in these royalty obligations when projecting their potential earnings and cash flow. The royalty is based on gross revenues without deductions for credit card or debit card processing fees.

Furthermore, if a Learningrx franchisee operates a Satellite Location, the gross revenues from the Satellite Location are combined with the gross revenues of the main center to calculate the total royalties owed to Learningrx each month. This combined gross revenue is then used to determine the royalty payment, using the same 8% or minimum monthly royalty calculation. This means that the performance of both the main center and any Satellite Locations will impact the overall royalty payment due each month.

Cash income reports from the accounting software, without any deductions for any fees due to collection method, are used to calculate the royalty amounts due each month. Franchisee may not deduct any credit card or debit card processing fees from Gross Revenue.