LearningRx franchise unit economics
LearningRx franchisees run a center where trainers deliver one-to-one cognitive, reading and maths programs to clients who are assessed first and then sold a multi-week course, inside a territory of up to 200,000 people. Across 40 centers in the year to September 2025 the average charged $346,367 and earned an operating margin of 21.4%, while the top third earned 28.6% and the bottom third 8.8%. The average client program sells for $9,686.
- Primary source
- LearningRx Franchise Corporation, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 19 for sales and any profit figure
- Population
- 40 of 42 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
A client program sells for $9,686 here, and the average center sells 36 of them a year, three a month. The top third sells 52 and the bottom third 16, where operating margin runs 28.6% at the top and 8.8% at the bottom on almost identical rent.
- Three programs a month is the average center’s entire business. $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 *. The clearest signal that selling capacity.
- 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. The brand’s disclosure document puts the profit line at 21.4% of revenue. 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 best group averaged $578,158 a year. The worst 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
- Trade area and site.A 4.2× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Capacity, fixed at build.capacity is None vans multiplied by hours multiplied by how full they run. What you can sell is set by the build, and the build does not change after opening.
- Territory, and how much of it is real.This model sells from a territory rather than a building, quoted at 200,000 people. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $150,000 to $220,000, a 1.5× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
- Lease economics.Occupancy cost ran 12.2% of sales in this filing. The rent does not fall when sales do, so the same lease is a far heavier line at the bottom of the system than at the top. That is how a weak site compounds into a weak profit line.
Live operating levers
- Wages, the dominant line.Wages take 35.6% of sales, against 21.4% kept at the end. Staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission are where this is won. Small movements here move the result more than anything else, because nothing else in the structure is that large.
- Occupancy, the line that does not flex.Rent and building costs take 12.2% of sales here. Sales per square foot and the hours the space is earning are the only two ways to move it, because the rent itself is fixed at signing.
- Customers, the operating driver.This model bills on customers. The owner works on how many customers are won, how many are lost, and what each spends in a year. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 12.8% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
Context you underwrite around
- The reporting screen.40 of 42 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
Down to net operating income
Twenty-one cents of net operating income on the same rent.
| 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 shares kept are marked *.
The all-center net operating income has a $6,296 discrepancy worth knowing about. 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 centers the median margin was 22%, the best 50% and the lowest-selling minus 17%.
Half this system charges under $315,310. Against an average of $346,367, with 17 of 40 reaching that average, 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.
The program as the unit
Everything here is one enrollment at nine and a half thousand dollars.
| 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
The difference is who you pay, and it inverts from top to bottom.
| 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 costs the middle and bottom thirds about a quarter of revenue and the top third a sixth. 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 lowest-selling group is spending roughly half of what a full 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
Fifty thousand dollars of revenue owed for every hundred thousand people.
| 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. Against a bottom third averaging $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. 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. 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.
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?
Operating margin averaged 21.4% on the filed lines, with a median of 22%, a high of 50% and a low of minus 17%. By third it 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 unit of sale?
A multi-week client 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?
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 does the brand take?
8% of gross revenues in royalty, stepping to 7.5% above $500,000 and 7% above $750,000. A minimum of $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, $2,400 a year of technology. Up to $4,000 a year for the digital marketing program. On our reading that is 12.9% of revenue at the average center.
What has to be spent on local advertising?
The greater of $3,000 a month or 5% of gross revenues for a standard franchise. $2,000 a month or 5% for a micro one, all of it payable 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?
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. $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?
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. And 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?
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- 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 Finance Diagnostic 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. 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?
A structured review of your unit economics, cash forecast. Reporting, built around three enrollments a month at $9,686 each, the 8.4% of charges that stays uncollected. The $36,000 minimum advertising charge that applies whatever you bill.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
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?How royalty, ad fund and minimums actually work on a monthly statement.
- How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
- Do I need a bookkeeper, a controller, or a CFO?What each one owns, and the point at which the next one pays for itself.
- Revenue was the highest it has been. Why did profit not move?Where the extra revenue went, line by line.