When is the transfer fee payable to Learningrx when selling a franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $5,000 to $10,000. (Note 10) | Prior to acceptance of transfer | Payable by transferee before you sell your franchise. This fee does not include the then current Initial Training and Materials Fee. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the transfer fee is due prior to Learningrx's acceptance of the transfer. The fee is paid by the transferee, the person or entity buying the franchise. This fee does not include the then-current Initial Training and Materials Fee.
The amount of the transfer fee varies depending on who the franchise is being transferred to. If the transfer is to a corporation in which the franchisee is the majority stockholder, or to the franchisee's child, parent, sibling, or spouse (with Learningrx's approval), no transfer fee is required. However, if the transfer is to another existing Learningrx franchisee, the transferee must pay a $5,000 transfer fee, along with a $6,000 Training and Materials Fee.
In all other cases, meaning a transfer to someone who is not an existing franchisee or a close relative, the transferee must pay a $10,000 transfer fee and a $10,000 Training and Materials Fee. The FDD specifies that the transfer fee is fully earned by Learningrx upon payment and is non-refundable under any circumstances. The transferee must also pay for the appropriate Initial Marketing Campaign, which ranges from $15,000 to $30,000.