FDD Talk Daily (Children’s Franchises): Average Revenue, Certain Expenses, and Operating Profits of LearningRx Centers

This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of LearningRx’s Item 19 Financial Performance Representations (2012 FDD)

• LearningRx Franchise Corporation offers franchises to operate a business for providing learning enhancement, cognitive training (also referred to as brain training), and reading training and courses using programs and products designed by LearningRx under the trade name LearningRx Training Center (“Center”).

• The total investment necessary to begin operation of a LearningRx Franchise ranges from $120,000 to $207,500, including between $35,000 to $45,000 that must be paid to the franchisor or its affiliate.

• The net revenue, expense numbers and ratios, average marketing expenditures by category, average marketing cost per prospect by category, percentage of prospects by marketing category, sales conversion rates, and percentage of revenue by service type, represent historical operating figures for all LearningRx franchisee-owned Centers open during the full fiscal year October 1, 2010 through September 30, 2011.

• Each chart reflects the performance experienced by the average of all LearningRx franchisee-owned Centers by revenue who operated a Center during the full fiscal year 2010-2011.

• As of September 30, 2011, out of 73 franchisee-owned Centers, 52 Centers operated during the full fiscal year ending September 30, 2011, and are represented below.

• 41 out of the 52 Centers (or 79%), attained or surpassed the stated results.

Tagged as: LearningRx