How to Finance a LearningRx Franchise: Brain Training Centers
By Marc Cornella
A LearningRx franchise loan funds a brain training center where trainers work one-on-one with children and adults to strengthen core cognitive skills such as attention, memory and processing speed. It is a people-driven, lightly equipped business, so most of the money goes to the franchise fee, a launch marketing campaign, a modest center and months of operating funds while enrollment builds.
This article walks through the investment the franchisor itemizes on its own site, the 8% royalty, how lenders view an enrollment-based education business, the brand’s SBA directory note and how to put a financing package together.
US Professional Funding is not affiliated with, sponsored by or endorsed by LearningRx; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current FDD and franchise agreement with a franchise attorney and an accountant.
LearningRx Franchise Loan at a Glance
- Initial franchise fee: $45,000, according to the franchisor’s website.
- Royalty: 8% of revenue, per the franchisor’s franchise FAQ.
- Estimated total investment: about $220,000 for a single U.S. center, with an itemized estimate totaling $223,000.
- Additional funds: $60,000 for the first three months, the largest single item.
- Background: founded in 2002 by Dr. Ken Gibson, franchising since 2003 and based in Colorado Springs, Colorado.
- Reach: centers in more than 40 countries, operating internationally as BrainRx.
- Education background: not required.
- Net worth and liquidity: no published minimum; finances are discussed during the qualification call.
- SBA Franchise Directory: listed as LearningRx (code S0992), with a note about the Lease Rider when real estate secures the loan.
What Is LearningRx?
LearningRx was founded by Dr. Ken Gibson, who spent decades developing an approach to measuring and training core cognitive skills. The company began franchising a year after its founding and now describes itself as the largest one-on-one brain training company in the world.
How a center works. Clients start with a cognitive skills assessment, then work through structured training programs with a dedicated trainer, either in the center or virtually at home. Clients range from school-age children to adults. Revenue comes from program enrollments rather than drop-in visits.
Center format. A center is typically an office-style suite with a reception area, training rooms or stations for one-on-one sessions and an assessment space. Staff include a center director and trainers, and the franchisor says no education or teaching background is required for owners.
How lenders view it. Lenders like the low equipment needs and a long franchising history. Their questions center on how quickly a new owner can generate enrollments, staff turnover among trainers and how program payments are collected and recognized.
LearningRx Franchise Costs
The franchisor’s path-to-ownership page lists a single U.S. center estimate. Costs vary with local rent and wages, and Canadian figures may differ.
Initial franchise fee
The site lists a $45,000 initial franchise fee. Franchisor materials also indicate that the fee can vary with territory population, so confirm the exact amount for your market in Item 5 of the current FDD. A separate training and materials fee of $10,000 applies.
Real estate and build-out
The estimate includes $30,000 for a security deposit, first month’s rent or real estate and improvements. Because a center needs offices rather than a kitchen or showroom, build-out is modest; quiet rooms, good lighting and professional finishes matter most.
Furniture, technology and supplies
Furniture and fixtures run $25,000, computer equipment and proprietary software $6,000, signage $5,000 and opening inventory of student supplies $3,000.
Opening costs and working capital
The marketing launch is budgeted at $30,000, travel and living during training at $3,000, insurance at $3,000 and miscellaneous opening costs at $3,000. Additional funds for the first three months total $60,000, reflecting payroll and rent while the client base grows.
Total investment
The itemized estimate totals $223,000:
- Initial franchise fee: $45,000
- Training and materials fee: $10,000
- Travel and living during training: $3,000
- Marketing launch: $30,000
- Security deposit, first month’s rent or real estate and improvements: $30,000
- Furniture and fixtures: $25,000
- Signage: $5,000
- Miscellaneous opening costs: $3,000
- Opening inventory of student supplies: $3,000
- Insurance policies: $3,000
- Computer equipment and proprietary software: $6,000
- Additional funds (first three months): $60,000
Compare these figures with Item 7 of the FDD you receive, which shows the official ranges and assumptions.
Ongoing Fees and How They Affect Your Loan
The franchise FAQ lists an ongoing royalty of 8% of revenue. Item 6 of the FDD shows any marketing, technology, assessment or software fees, plus transfer and renewal fees.
Because the royalty comes off the top of every enrollment, a lender reviewing a LearningRx franchise loan subtracts it before payroll, rent and debt service. Trainer wages are the largest expense, so projections must tie staffing to enrollment.
Franchisor Requirements for New Owners
LearningRx looks for driven, outgoing people who enjoy building relationships with parents, teachers and community leaders. It does not publish minimum net worth or liquid capital figures; finances and financing plans are reviewed during the qualification call.
The approval process. The franchisor describes six steps: an introductory call, a qualification call (after which qualified candidates receive the FDD), FDD review, calls with at least three current franchisees, a Discovery Day at a center and signing the franchise agreement, which the company says is not negotiable. Most owners open within 3 to 6 months of signing, according to the franchisor.
Ways to Own a LearningRx
A new center. Most owners open a new center, and lenders underwrite it on projections, the lease and the owner’s background. See our page on educational center start-up financing.
Buying an existing center. Established centers do come up for sale. A resale brings an enrolled client base, trained staff and a sales history. Lenders review enrollments, prepaid program balances and staff retention. Read about buying a franchise resale and our educational center acquisition options.
Financing Options for a LearningRx Franchise
SBA 7(a) loans. SBA 7(a) loans can combine the franchise and training fees, launch marketing, furniture, technology and working capital. The 7(a) program maximum is currently $5 million, and program rules can change. Our article on SBA loans for educational businesses covers the details.
SBA 504 loans. If you buy an office condo or small building, SBA 504 loans are built for owner-occupied real estate. Most centers lease.
Conventional term loans. Owners with strong liquidity, or buyers of a center with solid history, may use conventional business loans.
Equipment financing. Equipment needs are light, mostly computers, furniture and signage, so separate equipment financing plays a small role.
Working capital and lines of credit. The $60,000 additional funds line shows how important cash is during the ramp-up. A line of credit can also cover payroll when enrollments dip, such as around school breaks. See educational center working capital.
Seller financing on resales. A selling owner may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit them. Our article on educational business seller financing explains how these notes work.
SBA Loans for LearningRx Franchisees
SBA loans are made by participating lenders with a partial SBA guarantee. The SBA Franchise Directory lists brands whose agreements have been reviewed for eligibility, which simplifies the lender’s review. A listing does not approve any borrower.
The directory listing. LearningRx appears on the directory under code S0992.
What the directory note means. The listing says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Rider may not be executed. The Lease Rider is a franchisor document for leased centers that gives the franchisor certain rights in your lease. If you own the space and pledge it to the SBA loan, the rider is not signed for that deal. If you lease, the note does not apply.
SBA application tips. Bring the franchise agreement, lease, the itemized budget, an enrollment-based projection, tax returns and your resume.
How Lenders Evaluate a LearningRx Deal
Personal credit and financial history. Lenders review credit, tax returns and debts, and owners typically sign personal guarantees.
Net worth and liquidity. Expect to show cash for your equity injection and reserves beyond the franchisor’s additional funds estimate.
Management and sales experience. The owner’s job is building referral relationships with schools, community groups and parent networks, and hiring and keeping trainers. Sales and management backgrounds weigh heavily.
Business plan and projections. Model assessments per month, conversion to programs, program length and price, trainer hours and the 8% royalty. Read how lenders use the FDD; the franchisor says Item 19 includes system performance data.
The FDD and franchise agreement. Lenders check the term, renewal, transfer rules and territory. Item 10 shows any franchisor financing.
Prepaid programs. If families pay for programs up front, lenders and buyers will look at how much training is still owed. That obligation matters in a resale.
Multi-Unit Growth
Owners who add a second center usually finance it on the strength of the first center’s results. Lenders want consolidated statements and a plan to staff a second director.
Real-World Scenarios
A former teacher opening a center. A teacher with savings uses an SBA 7(a) loan for the franchise fee, launch marketing and the three-month cash cushion.
A sales professional buying a center. A buyer acquires an established center with a steady referral base, using a conventional loan and a subordinate seller note.
An owner buying an office condo. An owner finances an office purchase; because the real estate secures the SBA loan, the Lease Rider is not executed.
Common Mistakes to Avoid
- Cutting the additional funds budget to reduce the loan
- Projecting enrollment without a realistic referral-building plan
- Leaving the 8% royalty out of cash flow
- Overlooking prepaid program obligations when buying a center
- Signing a lease that ends before the loan does
For more pitfalls, read the educational business loan mistakes that cost owners the most.
Next Steps to Finance Your LearningRx Franchise
Step 1: Start the conversation. Complete the introductory and qualification calls.
Step 2: Review the FDD. Read Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 3: Talk to franchisees. Speak with at least three current owners about ramp-up and staffing.
Step 4: Talk with a financing specialist early. Our SBA loan calculator gives planning estimates only, not an offer or approval.
Step 5: Choose your site. Lock in a lease that fits the loan term and your territory.
Step 6: Apply and close. Submit your documents and coordinate franchisor and lender approvals with your training schedule.
LearningRx Franchise Loan FAQs
How much does a LearningRx franchise cost?
The franchisor estimates about $220,000 for a single U.S. center, and its itemized estimate totals $223,000. Check Item 7 of the current FDD.
What is the LearningRx franchise fee?
$45,000, according to the franchisor’s site, plus a $10,000 training and materials fee. The fee may vary with territory population.
What royalty does LearningRx charge?
8% of revenue, according to the franchise FAQ.
Do I need a teaching background?
No. The franchisor says an education background is not required.
How much liquid capital do I need?
No minimum is published. Plan for your equity injection plus reserves; the estimate already includes $60,000 for the first three months.
Is a LearningRx franchise loan eligible for SBA backing?
The brand is listed on the SBA Franchise Directory under code S0992, so eligible borrowers may apply, subject to program rules and lender approval.
Does LearningRx offer financing?
Its materials say owners may self-finance or apply for a small business loan, and that the company can point candidates to resources. Item 10 of the FDD shows any franchisor financing.
How long until a center opens?
Most franchisees open within 3 to 6 months of signing, according to the franchisor.
How long is the franchise term?
Item 17 of the current FDD sets the term, renewal and transfer rules.
Final Thoughts
A LearningRx franchise loan finances a business built on relationships and skilled trainers rather than equipment. Budget fully for the launch marketing and the cash cushion, model enrollment honestly and confirm every figure in the current FDD before you sign.
US Professional Funding helps franchise owners finance new centers, acquisitions and working capital. Learn more about our franchise financing and educational services financing programs.
