Is there a minimum monthly royalty fee for Learningrx franchisees?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ollection method, are used to calculate the royalty amounts due each month.
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- Minimum Monthly Royalty. You are required to pay a "Minimum Monthly Royalty" of $500 for Micro Franchises and $800 for Standard Franchises rather than 8% of your Gross Revenues if 8% of your Gross Revenues does not exceed the Minimum Monthly Royalty applicable to your franchise. This minimum starts after the Center has been in operation for 6 full months. On a quarterly basis, royalty totals paid for the quarter are reviewed, and a Center is credited in the month following the quarter, if the average per month over the quarter exceeded the monthly minimums. 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 cr
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to pay a minimum monthly royalty fee. This minimum royalty applies if 8% of the franchisee's gross revenues does not exceed the specified minimum. For Micro Franchises, the minimum monthly royalty is $500, while for Standard Franchises, it is $800. This requirement begins after the Learningrx center has been in operation for six full months.
Learningrx reviews royalty totals paid on a quarterly basis. If the average monthly royalty paid over the quarter exceeds the minimum monthly requirement, Learningrx will credit the franchisee's account in the following month. 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 total quarterly royalty paid exceeded $2,400.
This minimum royalty payment ensures that Learningrx receives a baseline royalty amount, regardless of the franchisee's monthly gross revenues. It also incentivizes franchisees to increase their revenue, as exceeding the minimum threshold results in a credit. Prospective Learningrx franchisees should factor this minimum royalty into their financial projections to ensure they can meet this obligation, especially during the initial months of operation.