LearningRx Franchise Cost, Revenue & Review 2026
- Investment
- $150K – $220K
- Disclosed sales
- $346K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (9)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
LearningRx is a brain-training franchise offering one-on-one cognitive skills programs for students and adults. Franchisees run the centers, administering assessments, delivering training sessions, and managing trainers and enrollment.
FranchiseVerdict summary · 2026
A LearningRx franchise requires a total initial investment of $150K – $220K, including a $30K – $45K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $346K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $150K – $220K
- 42nd pct Education
- Avg gross sales
- $346K
- 13th pct Education
- Royalty
- 8.0%
- 44th pct Education
- Units
- 43
- 52nd pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $150K – $220K including a $30K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $346K/year (median $315K), with an estimated 20% cash-on-cash return (based on Net Operating Income (Charges)).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHNegative: net -3 franchised outlets in the latest year (3 opened, 6 closed) (Item 20).
- DECLINESystem contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LearningRx Franchise Corporation
- Parent company
- LearningRx, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Kim Hanson
- Incorporated in
- CO
- HQ
- 6385 Corporate Drive, Suite 101, Colorado Springs, Colorado 80919
- Auditor
- Abacus CPAs, LLC
- Audited financials
- Franchisor revenue
- $1.8M
- vs $1.6M prior year
Overview
About
- CEO
- Kim Hanson
- Headquarters
- CO
- Founded
- 2003
- FDD year
- 2026
- States available
- 21
Can you afford it, and what does the money buy?
Entry cost is about typical for a education franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $80K | $130K |
| Total initial investment | $150K | $220K |
Source: LearningRx 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $150K – $220K
- Middle of category vs category
- Liquid capital req'd
- $40K – $60K
- Middle of category vs category
- Franchise fee
- $30K – $45K
- Top 40% of category vs category
- Royalty
- 8.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 4.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Training fee | $10K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $3K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 15% below the education norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for LearningRx until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$235K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $68K as Net Operating Income (Charges). This is a disclosed figure, not our estimate — we publish no modelled profit for LearningRx.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one LearningRx unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $346K
- Per unit, per year
- Median gross sales
- $315K
- Avg net operating income (charges)
- $68K
- Reported as Net Operating Income (Charges) in FDD Item 19
- Cash-on-cash
- 20.2%
- Based on Net Operating Income (Charges) / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 40 outlets
- vs category median 16 · large
- Range (low → high)
- $26K→$962KCited, not corroborated — printed on page 48 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $346K/year in gross sales. Revenue-to-investment ratio: 1.9x.
Fee burden
Total ongoing fee load of 11.0% — above the Education median of 9.0%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How LearningRx Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 3
- Last reporting year
- Closed
- 6
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -6.7%
- Net unit change over 3 years
- 3-yr CAGR
- -6.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 7
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
52 current owners across 22 states.
- TX 9
- MN 7
- VA 6
- CA 3
- CO 3
- TN 3
- AR 2
- GA 2
- NJ 2
- OH 2
- WI 2
- AZ 1
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (9)
- Insufficient SBA coverage: 9 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (9)
- 5-yr charge-off
- Under 10 loans (9)
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Commonwealth of Virginia vs. LearningRx Franchise Corporation, Consent Order SEC-2009-00071 (2009) - LearningRx offered one franchise in Virginia prior to completing registration; settled with $1,800 reimbursement and rescission offer to franchisee
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Abacus CPAs, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2025 Total Income of $1,751,694 (year ended Sept 30, 2025): royalty fees $1,069,202, marketing fees $344,128, technology and training fees $145,088, initial franchise fees $109,300, materials fees $21,403, area development fees $22,519, renewal $11,250, transfer $2,000, interest and other income $26,804.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MINORFTC settlement (2016) regarding unsubstantiated brain training claims creates liability and reputational risk; core marketing claims were challenged
- 02MINORSmall unit count (47 locations) with unknown growth trajectory suggests stagnation or contraction; minimal scale for system support
- 03MINORAverage revenue of $333,848 barely covers royalties (8% = $26,708/yr) plus franchise fees amortization, leaving thin margins for owner income
- 04MINORPrior regulatory violation (Virginia 2009) indicates compliance issues; pattern of regulatory friction (Virginia + FTC)
- 05MINORBrain 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
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | CO |
| Litigation count | 1 |
View Item 3 litigation summary
Commonwealth of Virginia vs. LearningRx Franchise Corporation, Consent Order SEC-2009-00071 (2009) - LearningRx offered one franchise in Virginia prior to completing registration; settled with $1,800 reimbursement and rescission offer to franchisee
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 30 hrs
- Training location
- Colorado Springs, Colorado (corporate headquarters); OJT at franchisee location
- Ongoing training
- Optional
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- 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
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 $150K – $220K, with an initial franchise fee of $30K. 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 $346K. The median is $315K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns LearningRx?
LearningRx is franchised by LearningRx Franchise Corporation. Its parent company is LearningRx, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the LearningRx FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the LearningRx FDD and qualifies whose outlets they describe.
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 43 total units in the United States, including 42 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is LearningRx a good franchise to buy?
FranchiseVerdict rates LearningRx as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent LearningRx, you can request corrections or provide updated information.
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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.