factual

What were the total expenses for the Learningrx franchise system in the earlier year presented in this table?

Learningrx Franchise · 2025 FDD

Answer 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.