When is the Satellite Location Fee for a Learningrx Satellite Location considered fully earned?

According to Learningrx's 2025 Franchise Disclosure Document, the Satellite Location Fee is considered fully earned upon signing the Satellite Location Addendum. This fee is non-refundable under any circumstances. The standard Satellite Location fee is $5,000 if the satellite location is outside of the territory. However, if the satellite location is within the territory, a reduced Satellite Location Fee of $2,400 is only due if the franchisee wants the satellite location listed on the Learningrx website.

For a prospective Learningrx franchisee, this means that the $5,000 fee (or $2,400 fee if applicable) is paid upfront when adding a satellite location and is non-refundable, regardless of the satellite location's performance or any unforeseen circumstances. This is a standard practice in franchising, as initial fees are typically used to cover the franchisor's costs associated with setting up the franchisee and providing initial training and support.

It's important to note that the Satellite Location Addendum has a term of one year, and Learningrx is under no obligation to renew it. If the addendum is renewed for additional terms, the franchisee must pay an additional Satellite Location Fee before the start of each new term. Additionally, if Learningrx grants a territory to another franchisee that includes the satellite location's site, the franchisee must shut down the satellite location and transfer all customers to the new franchisee without compensation or reimbursement of any portion of the Satellite Location Fee. Therefore, franchisees should carefully consider the potential risks and benefits before investing in a satellite location.