What is the total estimated initial investment for a Learningrx Standard Franchise (Item 7), considering the initial franchise fee (Item 5)?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure(1) | Satellite Location Population Varies in 10-mile radius | Micro Franchise “under” to below 100k in 10-mile radius | Standard Franchise 100k plus in 10-mile radius | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise | $5,000 | $30,000 | $45,000 | Us |
| Fee(2) | ||||
| Travel and Living Expenses While Training(3) | $0 | $3,000 | $3,000 | Airlines, hotels, car rental and restaurants |
| Initial Training & | $0 | $10,000 | $10,000 | Us |
| Materials Fee(4) | ||||
| Initial Marketing | $15,000 | $15,000 | $30,000 | Third-party vendors |
| Campaign(5) | ||||
| Security Deposit, First Month’s Rent or Real Estate & Improvements(6) | $15,000 | $22,000 | $30,000 | Landlord and third- party vendors |
| Furniture & | $10,000 | $15,000 | $25,000 | Third-party vendors |
| Fixtures | ||||
| Signage | $5,000 | $5,000 | $5,000 | Third-party vendors |
| Miscellaneous | $1,000 | $2,000 | $3,000 | Suppliers, utilities, |
| Opening Costs(7) | third-party vendors | |||
| Insurance | $1,500 | $2,000 | $3,000 | Insurance carrier |
| Policies*(8) | ||||
| Computer | $2,500 | $4,000 | $6,000 | Third-party vendors |
| Equipment & | ||||
| Proprietary | ||||
| Software(9) | ||||
| Additional Funds (initial three months)(10) | $20,000 | $40,000 | $60,000 | Suppliers, third-party vendors, etc. |
| TOTALS | $75,000 | $148,000 | $220,000 |
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the estimated initial investment for a Standard Franchise is $220,000, as detailed in Item 7. This figure encompasses various expenditures necessary to commence operations. The initial franchise fee for a Standard Franchise, as outlined in Item 5, is $45,000. This fee is part of the overall initial investment.
Item 7 provides a breakdown of the estimated initial investment, including the initial franchise fee, travel and living expenses while training ($3,000), initial training and materials fee ($10,000), initial marketing campaign ($30,000), security deposit, first month’s rent or real estate & improvements ($30,000), furniture & fixtures ($25,000), signage ($5,000), miscellaneous opening costs ($3,000), insurance policies ($3,000), computer equipment & proprietary software ($6,000), and additional funds for the initial three months ($60,000).
Prospective Learningrx franchisees should note that these costs are estimates and can vary based on factors such as location, economic conditions, and specific business decisions. The FDD advises careful review of these figures with a business advisor before making a purchase decision. Additionally, all fees and payments are generally non-refundable, so franchisees should be certain of their decision before committing to the franchise. The initial marketing campaign must be spent within 90 days prior to or after the opening of the center.
It is important to note that Learningrx does not provide financing arrangements. If financing is needed, the cost will depend on the franchisee's creditworthiness, collateral, and the lending policies of the financial institution. The FDD recommends having at least one computer system, but suggests two, for business operations. Franchisees will also be required to use Learningrx's proprietary software and pay a quarterly technology fee ranging from $1,800 to $2,400 per year, depending on the territory size.