What is the total lease cost for a Learningrx franchise, as of September 30, 2024?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
he renewal of lease will be chosen. Rent expense was $60,000 and $80,000 for the years ended September 30, 2024 and 2023, respectively. The company uses the incremental borrowing rate to calculate the ROU asset. As of September 30, 2024 and 2023 ROU assets were $218,958 and $220,053, respectively.
| Operating lease cost | $ 60,000 | |-----------------------------------------------------------------------------------------
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, future lease payments as of September 30, 2024, are detailed for the years 2025 through 2028. The lease payment scheduled for 2025 is $60,000.
Additionally, the FDD provides information on the total lease costs and operating lease costs as $60,000 each. The weighted-average remaining lease term is 4.00 years, with a weighted average interest rate of 4.57%.
Prospective Learningrx franchisees should note that they are solely responsible for locating a site for their business and negotiating the lease. While Learningrx will provide limited advice and assistance in site selection and lease negotiation, the final decision and responsibility rest with the franchisee. Learningrx may reject a proposed location, but such consent will not be unreasonably withheld. Franchisees should carefully consider location criteria, as it is a significant factor in the potential success of the business.