What taxes and debts is a Learningrx franchisee responsible for paying?

According to Learningrx's 2025 Franchise Disclosure Document, franchisees are responsible for all financial obligations related to their franchised business. This includes the prompt payment of all taxes, fees, debts, expenses, and assessments. A specific example provided in the FDD is the franchisee's responsibility to pay payroll taxes.

Learningrx franchisees must ensure that their business does not face any tax sales, seizures, levies, executions, bankruptcy proceedings, or assignment of assets for creditors. Failure to meet payment obligations can result in financial penalties. Specifically, Learningrx may charge interest on late payments at a rate of one percent (1%) per month, or the maximum interest rate allowed by law, whichever is less. This interest applies to any late payments or payments returned due to insufficient funds.

Furthermore, if a Learningrx franchisee fails to make required payments, they are liable for any damages, expenses (including appeal costs), collection costs, and reasonable attorneys' fees incurred by Learningrx to recover the funds. In addition to these costs, Learningrx may also impose a fine, the amount of which will be determined according to the provisions outlined in the Learningrx Operations Manual. These financial responsibilities underscore the importance of careful financial management for all Learningrx franchisees.