Is the Satellite Location Fee for a Learningrx franchise refundable, and if not, under what circumstances?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
lite Location, in accordance with the terms of the Franchise Agreement. The Satellite Location must comply with all specifications set forth in Franchisor's current Operations Manual.
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- Term. The term of this Addendum will begin on the date this Addendum is executed ("Execution Date") and, unless it is terminated earlier according to this Addendum, will expire at midnight on the three hundred, sixty-fifth (365th) day after the Execution Date ("Initial Term").
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- Satellite Location Fee. Upon the signing of this Addendum, Franchisee must pay a Satellite Location fee of Five thousand and 00/100 Dollars ($5,000.00) ("Satellite Location Fee"), if the Satellite Location is outside of the Territory. The Satellite Location Fee is fully earned upon signing this Addendum and is non-refundable under any circumstances. Upon making one annual payment of Five thousand and 00/100 Dollars ($5,000.00) or twelve (12) monthly payments of Four hundred fifty and 00/100 Dollars ($450.00) for a Satellite Location outside of the Territory,
Two thousand five hundred and 00/100 Dollars ($2,500.00) will be applied by Franchisor towards a future franchise agreement for Franchisee within the Territory. If approved by Franchisor in writing, this application may be renewed on an annual basis. If the Satellite Location is within the Territory, a reduced Satellite Location Fee of Two thousand four hundred and 00/100 Dollars ($2,400.00) will only be due if Franchisee wishes to have to Satellite Location listed on the LearningRx website.
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- Satellite Location Site. The site ("Site") of Franchisee's Satellite Location may be within the Territory granted to Franchisee under the Franchise Agreement, or it may be outside of the Territory granted to Franchisee under the Franchise Agreement, provided that site is not within an existing franchisee's territory granted pursuant to a valid franchise agreement. Franchisee acknowledges and agreements that Franchisee will not receive an exclusive or protected territory for its Satellite Location.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the Satellite Location Fee is generally non-refundable. Specifically, if a Learningrx franchisee signs an addendum to operate a satellite location outside of their territory, they must pay a $5,000 Satellite Location Fee. This fee is fully earned by Learningrx upon signing the addendum and is non-refundable under any circumstances.
However, $2,500 of this $5,000 fee may be applied towards a future franchise agreement for the franchisee within their territory, if approved by Learningrx in writing, and this application may be renewed annually. If the satellite location is within the franchisee's territory, a reduced Satellite Location Fee of $2,400 is due only if the franchisee wants the satellite location listed on the Learningrx website.
Additionally, if Learningrx licenses the right to own and operate a Learningrx center to another franchisee and grants that franchisee a territory that encompasses the original franchisee's site, the original franchisee must shut down its satellite location. In this event, the franchisee will not be entitled to any compensation or reimbursement of any portion of the Satellite Location Fee.