What was the total amount of Learningrx area development fees collected in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
n ended in accordance with accounting principles generally | | | | | | accepted in the United States of America. | | | | |
LearningRx Franchise Corporation Statements of Income For the Years Ended September 30, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Income | ||
| Royalty fees | $ 1,192,359 | $ 1,192,063 |
| Initial franchise fees | 114,551 | 162,286 |
| Area development fees | 9,769 | 6,200 |
| Technology and |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the total area development fees collected in 2023 amounted to $6,200. This figure represents the aggregate of all non-refundable development fees Learningrx received from area developers during that year.
Area development fees are typically paid by franchisees who obtain the rights to develop multiple franchise locations within a specified territory. These fees compensate Learningrx for granting the area developer the exclusive right to expand within that territory, following an agreed-upon development schedule. The FDD specifies that these fees are non-refundable, regardless of whether the franchisee ultimately opens all the planned centers.
For a prospective Learningrx area developer, this information provides insight into the revenue stream generated by these fees. It also highlights the importance of carefully evaluating the development schedule and territory potential before committing to an area development agreement, as the initial investment in these fees is non-recoverable. Reviewing the trend in area development fees over several years, as presented in the FDD, can further inform a franchisee's understanding of Learningrx's expansion strategies and the demand for area development opportunities.