Under what condition is the Satellite Location Fee of $5,000 required for a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
open and operate one Satellite Location, in accordance with the terms of the Franchise Agreement. The Satellite Location must comply with all specifications set forth in Franchisor's current Operations Manual.
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- Term. The term of this Addendum will begin on the date this Addendum is executed ("Execution Date") and, unless it is terminated earlier according to this Addendum, will expire at midnight on the three hundred, sixty-fifth (365th) day after the Execution Date ("Initial Term").
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- Satellite Location Fee. Upon the signing of this Addendum, Franchisee must pay a Satellite Location fee of Five thousand and 00/100 Dollars ($5,000.00) ("Satellite Location Fee"), if the Satellite Location is outside of the Territory. The Satellite Location Fee is fully earned upon signing this Addendum and is non-refundable under any circumstances. Upon making one annual payment of Five thousand and 00/100 Dollars ($5,000.00) or twelve (12) monthly payments of Four hundred fifty and 00/100 Dollars ($450.00) for a Satellite Location outside of the Territory,
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Satellite Location Fee of $5,000 is required when a franchisee opens a satellite location outside of their designated territory. This fee is due upon signing the Satellite Addendum to the franchise agreement. The document specifies that this fee is fully earned by Learningrx upon signing and is non-refundable under any circumstances.
Notably, the FDD outlines an option for franchisees to make one annual payment of $5,000 or twelve monthly payments of $450 for a satellite location outside of the territory. Furthermore, $2,500 of the initial $5,000 fee may be applied towards a future franchise agreement within the franchisee's territory, subject to Learningrx's written approval, which may be renewed annually.
In contrast, if the satellite location is within the franchisee's territory, a reduced Satellite Location Fee of $2,400 is only required if the franchisee wants the satellite location listed on the Learningrx website. This fee structure incentivizes franchisees to establish satellite locations within their territory or requires an additional investment for those expanding outside their territory.
Prospective franchisees should carefully consider these fee implications when planning their expansion strategy, as the location of the satellite center significantly impacts the required fees and potential application towards future franchise agreements.