Is the royalty fee required for all Learningrx franchisees?
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, a royalty fee is required for all franchisees. The royalty fee is 8% of Gross Revenues, but this can be adjusted to 7.5% for revenues above $500,000 per year and to 7% for revenues above $750,000 per year within a calendar year. The royalty fee is due on the 10th day of each month for the prior month's Gross Revenues.
Learningrx franchisees are also required to pay a Minimum Monthly Royalty. This is $500 for Micro Franchises and $800 for Standard Franchises. This minimum royalty payment is required if 8% of the Gross Revenues does not exceed these amounts. The minimum royalty starts after the center has been in operation for six full months.
On a quarterly basis, Learningrx reviews royalty totals paid for the quarter. If the average per month over the quarter exceeded the monthly minimums, the Learningrx center is credited in the month following the quarter. For example, if monthly gross revenues for a Standard Franchise are $9,000, $31,000 and $30,000 in a quarter, the minimum of $800 would have been paid in royalties in the first month, but $80 will be credited to the Center since the quarterly royalty total paid exceeded $2,400.