Learning Rx vs Stemtree
Learning Rx vs Stemtree: Learning Rx costs $50K to $290K to open; Stemtree costs $93K to $186K. Learning Rx has 22 units, Stemtree has 8. SBA loan history: Learning Rx = 22 loans (22.7% default); Stemtree = 10 loans (0.0% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Learning Rx vs Stemtree: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Learning Rx requires the lower minimum capital commitment ($50K vs $93K for Stemtree), a 46% spread. Initial franchise fees come in at $60K for Learning Rx versus $45K for Stemtree, Stemtree has the lower entry fee. Ongoing royalty load is 8% for Learning Rx and 8% for Stemtree, equal royalty drag.
System Scale & Tenure
On scale, Learning Rx operates 22 units to Stemtree's 8, roughly 3× the system size. Learning Rx has been operating 24 years (founded 2002) versus 12 for Stemtree (founded 2014), a 12-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Learning Rx has the deeper SBA lending track record, with 22 7(a) approvals compared with 10 for Stemtree.
Risk Signal
SBA default rates are 22.7% for Learning Rx and 0.0% for Stemtree, Stemtree has the cleaner SBA loss record by 22.7 points. PeerSense FPI scores come in at 24 (Fair) for Learning Rx and 50 (Moderate) for Stemtree, giving Stemtree the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 24/100 | 50/100 |
Health Tier | Limited | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 22 | 10 |
SBA Volume | – | – |
Default Rate | 22.7% | 0.0% |
Peer Tier | growing | growing |
Investment & Costs
Total Investment | $50K to $290K | $93K to $186K |
Franchise Fee | $60K | $45K |
Royalty Rate | 8% | 8% |
Ad Fund | 3% | 2% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 22 | 8 |
Franchised Units | 22 | 8 |
Company Owned | – | – |
Term Length | 10 yrs | 5 yrs |
Brand Information
Year Founded | 2002 | 2014 |
Franchising Since | 2003 | 2011 |
Years Franchising | 23 yrs | 15 yrs |
Headquarters | YOUNGSVILLE, LA | Vienna, VA |
Category | Educational Support Services | Educational Support Services |
Website | ||
FDD Year | 2026 | 2025 |
Which Is Better, Learning Rx or Stemtree?
Lower upfront capital required
Learning Rx
Learning Rx: $50K starting · Stemtree: $93K starting
More SBA lender confidence
Learning Rx
Learning Rx: 22 SBA loans · Stemtree: 10 SBA loans
Lower SBA default rate
Stemtree
Learning Rx: 22.7% · Stemtree: 0.0%
Larger system & brand presence
Learning Rx
Learning Rx: 22 units · Stemtree: 8 units
Lower ongoing royalty load
Tie
Learning Rx: 8% · Stemtree: 8%
More lender financing options
Learning Rx
Learning Rx: 14 unique lenders · Stemtree: 7 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Learning Rx vs Stemtree: Franchise Funding Comparison
Comparing Learning Rx and Stemtree is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $50K to $290K.
Learning Rx has 22 SBA loans on record and Stemtree has 10. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Learning Rx vs Stemtree, Frequently Asked Questions
Which is a better franchise investment, Learning Rx or Stemtree?
How much does a Learning Rx franchise cost compared to Stemtree?
Can I finance Learning Rx or Stemtree with an SBA loan?
Which has a lower SBA default rate, Learning Rx or Stemtree?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman