What were the total expenses for the Learningrx franchise system in the earlier year presented in this table?
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 table provides a comparison of income and expenses for 2024 and 2023. The total expenses for Learningrx in 2023 were $1,500,933. This figure encompasses various operational costs, including franchise system expenses, marketing and development, outside consultants, overhead, professional fees, rent, research and development, sales expenses, and technology.
Breaking down the expenses, franchise system expenses amounted to $564,949, while marketing and development costs were $34,373. Learningrx also spent $105,341 on outside consultants and $133,279 on overhead. Professional fees totaled $90,734, and rent expenses were $80,000. Research and development incurred costs of $39,138, and sales expenses reached $268,100. Finally, technology expenses amounted to $184,121.
For a prospective Learningrx franchisee, understanding these expenses is crucial for financial planning. It provides insight into where the franchisor allocates its resources and what costs a franchisee might expect to see reflected in their own operations, albeit on a smaller scale. Reviewing these figures helps potential franchisees assess the financial health and stability of the Learningrx franchise system.