What were the total Franchise System Expenses for Learningrx 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 franchise system expenses for 2024 were $615,225. This figure is part of a larger financial statement that includes various income and expense categories. Reviewing these expenses can provide potential franchisees with insight into where Learningrx spends its money to support the franchise system.
Other expenses listed include marketing and development ($50,212), outside consultants ($104,033), overhead ($79,864), professional fees ($67,938), rent ($60,000), research and development ($24,000), sales expenses ($246,224), and technology ($124,023). These expenses, along with franchise system expenses, contribute to the total expenses of $1,402,181 for 2024. Understanding these costs can help a prospective franchisee assess the financial health and stability of Learningrx.
In comparison, the franchise system expenses for 2023 were $564,949, which is less than the 2024 expenses. The total expenses for 2023 were $1,500,933. Examining these trends over multiple years can give a clearer picture of how Learningrx manages its finances and where it is investing to grow the franchise system. This information is crucial for making an informed investment decision.