What were the total expenses for the Learningrx franchise in 2024?
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 training fees | 113,401 | 112,854 |
| Transfer fees | 24,500 | - |
| Renewal fees | 7,000 | 7,000 |
| Materials fees | 15,888 | 16,479 |
| Marketing fees | 73,535 | 17,418 |
| Interest and other income | 20,726 | 5,295 |
| Total Income | 1,571,729 | 1,519,595 |
| Expenses | ||
| Bad debt | 29,764 | - |
| Depreciation | 898 | 898 |
| Franchise system expenses | 615,225 | 564,949 |
| Marketing and development | 50,212 | 34,373 |
| Outside consultants | 104,033 | 105,341 |
| Overhead | 79,864 | 133,279 |
| Professional fees | 67,938 | 90,734 |
| Rent | 60,000 | 80,000 |
| Research and development | 24,000 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the total expenses for the Learningrx franchise system in 2024 were $1,402,181. This figure encompasses various costs incurred by Learningrx, including bad debt, depreciation, franchise system expenses, marketing and development, outside consultants, overhead, professional fees, rent, research and development, sales expenses, and technology. These expenses are essential for the ongoing operation and support of the Learningrx franchise system.
Breaking down the expenses, Learningrx had franchise system expenses of $615,225, marketing and development costs of $50,212, and spent $104,033 on outside consultants. Overhead expenses amounted to $79,864, while professional fees totaled $67,938. Rent expenses were $60,000, and research and development costs were $24,000. Sales expenses were significant at $246,224, and technology expenses reached $124,023. Additionally, Learningrx accounted for bad debt of $29,764 and depreciation of $898.
For a prospective Learningrx franchisee, understanding these expenses is crucial for assessing the financial health and stability of the franchise system. It provides insight into where Learningrx allocates its resources and how these allocations might impact the support and services provided to franchisees. Reviewing these expenses in comparison to the income generated, also detailed in the FDD, helps potential franchisees evaluate the overall profitability and sustainability of a Learningrx franchise.