LearningRx Franchise FDD, Profits & Costs (2025)
LearningRx is a franchise with a unique approach to cognitive enhancement, focusing on brain training rather than traditional tutoring.
It was founded by Dr. Ken Gibson in August 2002 in Colorado Springs, Colorado. Dr. Gibson was inspired to start LearningRx due to his struggles with reading as a child, which he later understood to be related to cognitive skills weaknesses.
The franchise distinguishes itself from the competition by emphasizing one-on-one brain training, which aims to enhance key cognitive skills necessary for learning and performance, such as attention, memory, and reading abilities.
This approach is based on the science of neuroplasticity, which asserts that the brain can change and adapt at any age. LearningRx’s programs are designed to not just treat the symptoms of learning challenges but to identify and strengthen the underlying cognitive skills causing those challenges.
LearningRx Financial Plan
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Initial Investment
How much does it cost to start a LearningRx franchise? It costs on average between $153,000 – $223,000 to start a LearningRx franchised facility.
This costs encompass expenses for construction, equipment, training materials, and initial operational costs. The total investment varies based on several factors, such as the type of facility, the chosen location, and whether the franchisee opts to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 – $45,000 |
| Initial Training & Materials Fee | $10,000 |
| Marketing Launch Fee | $18,000 – $30,000 |
| Travel and Living Expenses While Training | $3,000 |
| Security Deposit, First Month’s Rent or Real Estate & Improvements | $22,000 – $30,000 |
| Furniture & Fixtures | $15,000 – $25,000 |
| Signage | $5,000 |
| Miscellaneous Opening Costs | $2,000 – $3,000 |
| Opening Inventory | $2,000 – $3,000 |
| Insurance Policies* | $2,000 – $3,000 |
| Computer Equipment & Proprietary Software | $4,000 – $6,000 |
| Additional Funds (initial three months) | $40,000 – $60,000 |
| Total | $153,000 – $223,000 |
Average Revenue (AUV)
How much revenue can you make with a LearningRx franchise? A LearningRx franchised center makes on average $352,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $205,000 yearly revenue for similar tutoring franchises.
Below are 10 LearningRx competitors as a comparison:
LearningRx Financial Plan
Get a professional business plan and get funding for your franchise.
LearningRx Franchise Disclosure Document
Frequently Asked Questions
How many LearningRx locations are there?
As of the latest available data, LearningRx operates approximately 70 centers across the United States. The majority of these centers are franchise-owned, with a smaller number being company-owned. This distribution reflects LearningRx’s business model, which emphasizes franchising to expand its reach in providing cognitive training services.
What is the total investment required to open a LearningRx franchise?
The total investment required to open a LearningRx franchise ranges from $153,000 to $223,000.
What are the ongoing fees for a LearningRx franchise?
LearningRx franchisees pay an 8% royalty fee on gross revenues, decreasing to 7.5% after $500,000 and 7% after $750,000 annually. Additionally, a 3% Marketing Development Fund fee is required, capped at $15,000 per center per year.
What are the financial requirements to become a LearningRx franchisee?
To qualify as a LearningRx franchisee, candidates are expected to have a minimum net worth ranging from $150,000 to $250,000, depending on the source. Additionally, prospective franchisees should possess liquid capital between $45,000 and $149,000.
These financial prerequisites ensure that franchisees have the necessary resources to support the initial investment and ongoing operational expenses associated with establishing and running a LearningRx center.
How much can a LearningRx franchise owner expect to earn?
The average gross sales for a LearningRx franchise are approximately $0.35 million per location. Assuming a 15% operating profit margin, $0.35 million yearly revenue can result in $53,000 EBITDA annually.
Who owns LearningRx?
LearningRx is a privately owned company founded by Dr. Ken Gibson in 2002. He continues to play a significant role in the company, serving as its CEO. The organization operates as a franchise, with numerous centers owned and managed by individual franchisees across the United States.
Disclaimer
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