LearningRxFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A LearningRx franchise requires a total initial investment of $148K – $220K, including a $45K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $334K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $148K – $220K
- 38th pct Education
- Avg gross sales
- $334K
- 15th pct Education
- Royalty
- 8.0%
- 31st pct Education
- Units
- 47
- 48th pct Education
- SBA default
- 22.2%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 47 to 46 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $148K – $220K including a $45K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $334K/year.
- Verdict F (Bottom Quintile) with a risk score of 82/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LearningRx Franchise Corporation
- Parent company
- LearningRx, Inc.
- Incorporated in
- CO
- HQ
- 6385 Corporate Drive, Suite 101, Colorado Springs, Colorado 80919
- Auditor
- Abacus CPAs, LLC
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.6M prior year
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.
- CEO
- Kim Hanson
- Headquarters
- CO
- Founded
- 2003
- FDD year
- 2025
- States available
- 21
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $63K | $115K |
| Total initial investment | $148K | $220K |
Source: LearningRx 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$40K
12.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $148K – $220K
- Better than avg vs category
- Liquid capital req'd
- $40K – $60K
- Near category avg vs category
- Franchise fee
- $30K – $45K
- Better than avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $334K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 45 units
- vs category median 14 · large
- Range (low → high)
- $36K→$893K
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How LearningRx Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 47
- Opened
- 2
- Last reporting year
- Closed
- 2
- Turnover rate
- 4.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $1.1M
- Median loan
- $130K
- 50th percentile
- Charge-off rate
- 22.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into LearningRx's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Abacus CPAs, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 82 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 30 hrs
- POS system
- proprietary customer relationship management software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: proprietary customer relationship management software
Item 20 · call current owners
Franchisee Contacts
52 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
LearningRx · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LearningRx franchise?
The total investment to open a LearningRx franchise ranges from $148K – $220K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LearningRx franchise owners earn?
According to Item 19 of the LearningRx FDD, the average gross sales per unit is $334K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is LearningRx's franchise failure rate?
SBA 7(a) loan charge-off data is not available for LearningRx (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many LearningRx franchise locations are there?
As of their most recent FDD filing, LearningRx has 47 total units in the United States, including 47 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is LearningRx a good franchise to buy?
FranchiseVerdict rates LearningRx as a F-grade franchise with a risk score of 82 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.