LearningRx franchise unit economics
LearningRx franchisees run centers where trainers deliver one-to-one cognitive, reading and maths programs to clients who are assessed first and then sold a multi-week course.
LearningRx franchise at a glance
LearningRx’s Item 19 reports revenue and expenses for 40 centers in the fiscal year ended 30 September 2025, overall and by third, with average net operating income of 20%.
LearningRx franchisees averaged $346,367 of sales in the fiscal year to 30 September 2025, with a median of $315,310, according to Item 19 of LearningRx’s 2026 FDD, issued 1 January 2026. The 40 in that group are 95%* of LearningRx’s 42 locations. Fees paid to LearningRx come to about 12.85%* of sales.
- A LearningRx franchise costs $150,000 to $220,000 to open, including a $45,000 initial franchise fee, according to the brand's 2026 FDD.
- LearningRx charges a royalty of 8% of sales, a 3% brand fund contribution and a $200 monthly technology fee.
- LearningRx’s 40 reporting centers kept 21.4% of revenue after the expenses Item 19 lists, on Averan’s calculation, while the FDD prints average net operating income of 20%. LearningRx’s FDD does not define net operating income.
- At the average LearningRx location, wages took 35.6% and rent and space costs took 12.2% of sales.
- Work out LearningRx's fees at your own sales with the minimum fee calculator.
These figures come from LearningRx's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- The average center sells about three programs a month. $346,367 of charges divided by a $9,686 program *, so one more sale a month is worth $116,233 a year, a third of what the average center charges.
- The top third spends more on administration than on trainers. $112,453 against $92,960, while the bottom third spends $12,299 against $31,964 *. That points to selling capacity as the difference.
- Rent costs the top and middle thirds almost the same dollars. $48,011 against $50,796 *, yet it takes 8.3% of revenue at the top and 16.6% in the middle, so the lease is fixed and only volume moves.
- Marketing returns $8.51 of charges for every dollar spent. $10.31 in the top third and $6.25 in the bottom, and the bottom third spent $21,820, below the $24,000 a smaller territory is required to spend *.
- $29,040 of what the average center charged went uncollected. $317,327 collected against $346,367 charged, 91.6% *, and in the top third the shortfall reaches $54,286.
How much does a LearningRx franchise make?
The average LearningRx unit reported $346,367 of revenue in the 2026 FDD, and the median reported $315,310. Revenue less the expenses the brand’s disclosure document lists comes to 21.4% of revenue on Averan’s calculation, and the document prints net operating income of 20%. Fees come off the top first, at about 12.8% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top LearningRx performers
LearningRx splits its locations into groups instead of publishing one average. The top group averaged $578,158 a year. The lowest averaged $136,406. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $315,310. The average was $346,367. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 4.2× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Capacity is the number of trainers, times the hours they work, times how full their schedules are. The build sets how much you can sell.
- Territory.A standard LearningRx territory holds 100,000 to 200,000 people, and its protection lasts only while the revenue quota is met.
- Opening cost range.Opening costs $150,000 to $220,000, a 1.5× range inside one brand.
- Lease cost.Occupancy cost ran 12.2% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
- Fees and the minimum.Fees run about 12.8% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Wages.Wages take 35.6% of sales, against 21.4% left after the listed expenses. The levers are staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission.
- Occupancy cost.Rent and building costs take 12.2% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Sales depend on customers.The owner works on how many customers are won, how many are lost, and what each spends in a year.
Context you underwrite around
- Locations included.These figures cover 40 of 42 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
Down to net operating income
Net operating income by third, fiscal year 2025
| Line | All 40 | Top third (14) | Middle third (13) | Bottom third (13) |
|---|---|---|---|---|
| Total sales charged | $346,367.01 | $578,158.40 | $306,706.45 | $136,406.06 |
| Total sales collected | $317,326.74 | $523,872.36 | $277,316.89 | $134,902.85 |
| Total expenses | $272,103.56 | $412,744.06 | $268,327.13 | $124,420.98 |
| Net operating income after operating costs | $74,263.45 | $165,414.33 | $38,379.33 | $11,985.08 |
| Operating margin * | 21.4% | 28.6% | 12.5% | 8.8% |
| Average client program fee | $9,686.08 | $11,196.12 | $9,432.15 | $8,313.80 |
Charges, collections, expenses and program fees are as the brand reported it. The all-center net operating income shown here is the filed revenue less the filed expenses and the margins are marked *.
The all-center net operating income line is $6,296 below the filed charges less expenses. Subtracting the filed expenses from the filed charges gives $74,263.45, while the line itself reads $67,967.32. The three thirds each subtract correctly and recombine to $74,263.45, so the combined figure is the one out of step.
Operating margin runs 28.6% at the top and 8.8% at the bottom. On the filed lines *, and across all 40 LearningRx centers the printed median margin was 22%, the highest 50% and the lowest minus 17%.
Half this system charges under $315,310. The average is $346,367, 17 of 40 centers reach it, and the range runs from $961,581 down to $26,304.
Collections trail charges by 8.4% across the system. $317,327 against $346,367 *, and the gap is worth more than half the net operating income of a middle-third center.
Reading programs are 44.8% of everything charged. $155,211 at the average center, ahead of cognitive training at 22.8% and the Einstein program at 13.0%, so one product line has nearly half the revenue.
Discounts available
- LearningRx charges 35% of the then-current Initial Franchise Fee plus Initial Training and Materials Fee for each additional center under an Area Development Agreement.
From Item 5 of the LearningRx 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The program as the unit
Sales volume implied by the program fee
| Group | Charged | Program fee | Programs a year * | A month * | Prospects needed * |
|---|---|---|---|---|---|
| Top third | $578,158.40 | $11,196.12 | 51.6 | 4.3 | 156 |
| Middle third | $306,706.45 | $9,432.15 | 32.5 | 2.7 | 130 |
| Bottom third | $136,406.06 | $8,313.80 | 16.4 | 1.4 | 48 |
| All 40 | $346,367.01 | $9,686.08 | 35.8 | 3.0 | 115 |
Charges and program fees are as the brand reported it. The program counts divide one by the other while the prospect counts apply each group's filed student-per-prospect rate, marked *.
One more program a month is worth $116,233 a year. Twelve sales at $9,686.08 *, which is 34% of what the average center charges, so this business moves on single-digit changes in monthly enrollment.
The top third sells 3.1 times as many programs at a 35% higher price. 51.6 against 16.4, and $11,196.12 against $8,313.80 *, volume is the larger factor by roughly four to one.
31 of every 100 prospects become students across the system. 59 reach an assessment and 65% of consultations convert, so about 115 prospects a year sustain the average center, and 156 sustain a top-third one.
The bottom third converts better than the top and still sells a third as much. 34% of prospects against 33%, so its constraint sits in lead volume, which points the fix at marketing spend.
Every dollar of marketing returned $8.51 of charges. $10.31 in the top third and $6.25 in the bottom *, so a center at the system rate needs about $1,138 of marketing to produce one $9,686 program.
Where the three groups differ
Largest expense lines by third
| Expense | All 40 | Top third | Middle third | Bottom third |
|---|---|---|---|---|
| Wages, trainers | $67,026.96 | $92,960.40 | $74,161.48 | $31,964.11 |
| Share of revenue * | 19.4% | 16.1% | 24.2% | 23.4% |
| Wages, administration | $56,231.90 | $112,452.86 | $39,619.03 | $12,299.13 |
| Share of revenue * | 16.2% | 19.5% | 12.9% | 9.0% |
| Facilities | $42,154.11 | $48,010.50 | $50,795.57 | $27,205.78 |
| Share of revenue * | 12.2% | 8.3% | 16.6% | 19.9% |
| Marketing | $40,700.92 | $56,092.29 | $43,006.90 | $21,819.61 |
| Share of revenue * | 11.8% | 9.7% | 14.0% | 16.0% |
Every dollar figure is as the brand reported it and each share of revenue divides it by that group's filed total sales charged, marked *.
The top third spends $112,453 on administration and $92,960 on trainers. The bottom third reverses it at $12,299 and $31,964 *, so the highest-selling centers have nine times the administrative wages, which in a sold-program model means people who sell and schedule.
Trainer wages cost the middle and bottom thirds about a quarter of revenue and the top third a sixth. That is 24.2% and 23.4% against 16.1% *. The same trainers deliver more paid hours when the appointment book is full.
The middle third pays more rent in dollars than the top third. $50,796 against $48,011, on revenue $271,452 lower, which is the single clearest case in this system for volume over premises.
The bottom third’s marketing spend of $21,820 falls under the smallest contractual minimum. $24,000 a year for a territory under 100,000 people *, against $36,000 for a standard territory, so the LearningRx bottom third spends 61% of what a standard territory requires *.
The filed royalty line runs 6.8% of charges against a base rate of 8%. $23,593 on $346,367 *, consistent with a rate that steps down above $500,000 and with royalty falling on collections.
Fees, targets and what it costs to open
Revenue quota by territory population
| Period | Rate | Territory of 100,000 | Territory of 200,000 |
|---|---|---|---|
| First 12 months | $50,000 per 100,000 people | $50,000 | $100,000 |
| Second 12 months | $75,000 per 100,000 people | $75,000 | $150,000 |
| Every year after | $100,000 per 100,000 people | $100,000 | $200,000 |
The quota rates and population groups are as the brand reported it and the dollar thresholds apply those rates to a full territory at each group, marked *.
A full standard territory owes $200,000 a year from year three. The bottom third averages $136,406 *, a shortfall of $63,594, and missing it lets the brand place another franchisee inside your territory.
Royalty is 8% of gross revenues with a minimum of $800 a month. $9,600 a year, so the minimum holds until revenue reaches $120,000 *, and the rate steps to 7.5% above $500,000 and 7% above $750,000, which only the highest-selling centers reach.
Local advertising is a hard $36,000 a year for a standard territory. The requirement is $36,000 or 5% of revenue, whichever is larger, so the percentage only takes over above $720,000 *, and every dollar of it must go to independent third parties.
Brand charges come to 12.9% of revenue at the average center. 8% royalty, 3% to the marketing development fund, $2,400 of technology and up to $4,000 for the digital marketing program, totaling $44,500 *, and adding the minimum local advertising charge takes the committed total to 23.2%.
A standard center costs $220,000 to open and a micro one $150,000. That is 0.64 and 0.43 times what the average center charges in a year *, with $42,000 to $57,500 of that going to the brand, and a satellite location adding $80,000.
Questions we get asked
Questions an owner asks
How much does a LearningRx franchise make?
LearningRx franchisees averaged $346,367 of sales in the fiscal year to 30 September 2025, with a median of $315,310, according to Item 19 of LearningRx’s 2026 FDD, issued 1 January 2026. The 40 in that group are 95%* of LearningRx’s 42 locations. Fees paid to LearningRx come to about 12.85%* of sales.
What does a LearningRx center bill?
Across 40 centers in the year to September 2025 the average charged $346,367 and collected $317,327. The median charged $315,310, the highest-selling $961,581 and the lowest-selling $26,304, with 17 of 40 reaching the average. By third the averages were $578,158, $306,706 and $136,406.
What does it earn at LearningRx?
Revenue less the filed expense lines comes to 21.4% of revenue on Averan’s calculation. The filing prints net operating income averaging 20%, with a median of 22%, a high of 50% and a low of minus 17%. By third, revenue less the filed expenses runs 28.6%, 12.5% and 8.8%. The filed all-center net operating income of $67,967.32 sits $6,296 below the filed revenue less the filed expenses, which comes to $74,263.45.
What is the LearningRx unit of sale?
A LearningRx client buys a multi-week program, averaging $9,686.08 across the system and $11,196.12 in the top third. On our reading the average center sells about 36 a year, three a month, against 52 in the top third and 16 in the bottom. One extra sale a month is worth $116,233 a year.
How do clients arrive at LearningRx?
59% of prospects reach an assessment and 65% of consultations become students, giving 31% of prospects overall. On our reading that puts about 115 prospects a year behind the average center. Marketing returned $8.51 of charges per dollar spent across the system, $10.31 in the top third and $6.25 in the bottom.
What fees does LearningRx charge?
LearningRx charges 8% of gross revenues in royalty, stepping to 7.5% above $500,000 and 7% above $750,000. The minimum is $800 a month for a standard franchise and $500 for a micro one, plus 3% to the marketing development fund with a $300 monthly minimum and a $15,000 annual cap, and $2,400 a year of technology. The digital marketing program costs up to $4,000 a year. On our reading that is 12.9% of revenue at the average center.
What has to be spent on local advertising at LearningRx?
It is the greater of $3,000 a month or 5% of gross revenues for a standard franchise. A micro franchise pays $2,000 a month or 5%, all of it to independent third parties. On our reading the percentage only overtakes the minimum above $720,000 of revenue. So for almost every center this is a fixed $36,000 or $24,000 a year.
What territory do you get at LearningRx?
A LearningRx territory holds up to 100,000 people for a micro franchise at $30,000, and 100,000 to 200,000 for a standard one at $45,000. Territory protection lasts as long as minimum revenue quotas are met. The quota is $50,000 per 100,000 people in year one, $75,000 in year two and $100,000 every year after. The territory excludes the internet, and the brand keeps other channels of distribution.
Which two numbers should run monthly at LearningRx?
Track programs sold against three a month, because each one costs $9,686 and a single extra sale a month is worth a third of average annual revenue. Then track collections against charges, because 8.4% of what the system charged stayed uncollected and the gap widens as centers grow.
Questions worth putting to LearningRx
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does LearningRx see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many LearningRx locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →How many programs is your month holding?
We review your unit economics and cash forecast and build your reporting around three enrollments a month at $9,686 each, the 8.4% of charges that stays uncollected, and the $36,000 minimum advertising charge that applies whatever you bill.
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LearningRx reads against the rest of the tutoring and learning centers group: Best in Class Education Center · Brain Balance · Huntington Learning Center · Kumon · Mathnasium · Sylvan Learning. The tutoring and learning centers guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
- Revenue was the highest it has been. Why did profit not move?It traces where the extra revenue went, line by line.
Where these figures come from.
Every figure here comes from LearningRx Franchise Corporation’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. LearningRx® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: LearningRx Franchise Corporation, 2026 Franchise Disclosure Document, issued 1 January 2026.