Bottom line
- Total investment $148K – $220K including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $334K/year.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one LearningRx unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 LearningRx units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$334K
on $1.7M purchase
Total debt
$1.3M
SBA $0.8M + senior + seller note
Overview
About
LearningRx franchisees operate cognitive training centers offering one-on-one brain training programs, tutoring, and learning assessments to students, adults, and seniors. Day-to-day operations include client intake, administering standardized assessments, delivering personalized training sessions, managing instructor staff, and marketing to schools and parents. Revenue model relies on per-session fees and package pricing for training programs.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
LearningRx presents meaningful risk due to unresolved FTC litigation shadow, opaque unit economics, stagnant system size, and inherent skepticism toward cognitive training claims in a post-FTC-settlement market.
Score breakdown · what drove the 54 / 100 rating
- 01MINORFTC settlement (2016) regarding unsubstantiated brain training claims creates liability and reputational risk; core marketing claims were challenged
- 02MEDNo Item 19 (average unit volumes) disclosed despite $148k-$220k investment requirement; impossible to validate ROI claims independently
- 03MINORSmall unit count (47 locations) with unknown growth trajectory suggests stagnation or contraction; minimal scale for system support
- 04MINORAverage revenue of $333,848 barely covers royalties (8% = $26,708/yr) plus franchise fees amortization, leaving thin margins for owner income
- 05MINORPrior regulatory violation (Virginia 2009) indicates compliance issues; pattern of regulatory friction (Virginia + FTC)
- 06MINORBrain training industry faces scientific scrutiny and declining consumer confidence post-FTC action; market headwinds beyond franchisee control
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
52 numbers
One-time purchase · CSV download · Validation questions included
FDD download
LearningRx · FDD (2025) PDF