Under what circumstances is the Transfer Fee waived for a Learningrx franchise transfer?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
goodwill or brand under any other agreement with Franchisor at the time Franchisee requests permission to transfer the Business or at the time of the transfer;
- (b) Franchisee has settled all outstanding accounts with Franchisor, and Franchisee, and every principal of Franchisee's entity, have executed a general release of Franchisor and all principals of Franchisor from all claims that may be brought by you or any principal;
- (c) the proposed transferee pays Franchisor a fee to transfer the Business ("Transfer Fee") in the amount of Ten Thousand and 00/100 Dollars ($10,000.00), unless the transferee is: (i) a corporation, partnership, or limited liability company of which Franchisee is the majority stockholder, or a child, parent, sibling or spouse of Franchisee, in which case no Transfer Fee will be required, or (ii) another franchisee of LearningRx, in which case the Transfer Fee will be Five Thousand and 00/100 Dollars ($5,000.00). The Transfer Fee is fully earned upon payment and is non-refundable under any circumstances;
- (d) the proposed transferee executes a separate franchise agreement with Franchisor, using the then-current form of franchise agreement;
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the transfer fee is waived under specific circumstances. A Learningrx franchisee is not required to pay a transfer fee if they transfer their center to a corporation in which they are the majority stockholder. Similarly, the transfer fee is waived if the Learningrx franchisee transfers the center to their child, parent, sibling, or spouse, provided that Learningrx approves the transfer.
In cases where the transfer fee is not waived, the amount depends on the transferee. If the Learningrx center is transferred to another Learningrx franchisee, the transfer fee is $5,000. In all other transfer scenarios, the transferee must pay a transfer fee of $10,000. This $10,000 fee includes initial training at Learningrx's office, onsite training, advanced consultation training onsite/grand opening, and legal fees.
It is important for prospective Learningrx franchisees to understand these transfer fee conditions, as they can significantly impact the costs associated with transferring a franchise. Franchisees should carefully consider these factors when planning for potential future transfers of their Learningrx center.