When is the Royalty Fee due for a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 8% of Gross Revenues or the Minimum Monthly Royalty (Notes 2, 3, and 4); adjusted to 7.5% for revenues above $500,000/yr and to 7% for revenues above $750,000/yr (within a calendar year) | Due on the 10th day of each |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Royalty Fee is due on the 10th day of each month. This payment covers the Gross Revenues earned during the previous month. The standard Royalty Fee is 8% of Gross Revenues, but this percentage can be adjusted to 7.5% for revenues above $500,000 per year and further to 7% for revenues exceeding $750,000 per year.
In addition to the standard royalty, Learningrx franchisees must also pay a Minimum Monthly Royalty. If 8% of the Gross Revenues does not exceed $500 for Micro Franchises or $800 for Standard Franchises, the franchisee is required to pay the minimum monthly royalty amount. This minimum royalty requirement begins after the Learningrx center has been in operation for six full months.
Learningrx also reviews royalty totals on a quarterly basis. If the average monthly Gross Revenues over the quarter exceeds the minimum monthly royalty, Learningrx will credit the franchisee's account in the month following the quarter. For example, if a Standard Franchise has monthly gross revenues of $9,000, $31,000, and $30,000 in a quarter, the franchisee would initially pay the minimum royalty of $800 in the first month. However, Learningrx will credit $80 back to the center because the quarterly royalty total paid exceeded $2,400.