What actions are considered a 'Transfer' of a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Transfer by Franchisee. Franchisee's obligations under this Addendum are personal and may not be voluntarily or involuntarily sold, pledged, assigned, transferred, shared, subdivided, sib franchised, encumbered or transferred in any way without the prior express written approval of Franchisor.
(b) Franchisee has settled all outstanding accounts with Franchisor, and Franchisee, and every principal of Franchisee's entity, have executed a general release of Franchisor and all principals of Franchisor from all claims that may be brought by you or any principal;
(c) the proposed transferee pays Franchisor a fee to transfer the Business ("Transfer Fee") in the amount of Ten Thousand and 00/100 Dollars ($10,000.00), unless the transferee is: (i) a corporation, partnership, or limited liability company of which Franchisee is the majority stockholder, or a child, parent, sibling or spouse of Franchisee, in which case no Transfer Fee will be required, or (ii) another franchisee of LearningRx, in which case the Transfer Fee will be Five Thousand and 00/100 Dollars ($5,000.00).
(d) the proposed transferee executes a separate franchise agreement with Franchisor, using the then-current form of franchise agreement;
(e) the proposed transferee pays for, attends, and satisfactorily completes the training program for new franchisees unless the transferee is a current franchisee or administrative staff member in good standing in the System that has already attended a full franchise training and met the current training requirements for a Center's staff;
(f) the proposed transferee pays an Initial Training and Materials Fee of Ten Thousand and 00/100 Dollars ($10,000.00) upon the signing of the separate franchise agreement with Franchisor, unless the transferee is another franchisee of LearningRx, in which case the Initial Training and Materials Fee will be Six Thousand and 00/100 Dollars ($6,000.00).
(g) the individual proposed transferee, or the stockholders, partners, members, or trustees and beneficiaries of a proposed entity transferee, each execute a personal guarantee, jointly and severally guaranteeing the performance of the proposed transferee's obligations;
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee's obligations under the addendum are personal and cannot be voluntarily or involuntarily sold, pledged, assigned, transferred, shared, sub-franchised, encumbered, or transferred in any way without the prior express written approval of Learningrx. This applies specifically to the Satellite Location Addendum.
If a Learningrx franchisee wishes to transfer their franchise, several conditions must be met. The franchisee must settle all outstanding accounts with Learningrx, and both the franchisee and its principals must execute a general release of Learningrx from all claims. The proposed transferee must execute a separate franchise agreement with Learningrx, using the then-current form. The transferee must also pay for, attend, and satisfactorily complete the training program for new franchisees, unless they are a current franchisee or administrative staff member in good standing who has already completed the training.
Furthermore, the proposed transferee must pay a transfer fee. The standard transfer fee is $10,000, but it is reduced to $5,000 if the transferee is another Learningrx franchisee. No transfer fee is required if the transfer is to a corporation, partnership, or limited liability company where the franchisee is the majority stockholder, or to a child, parent, sibling, or spouse of the franchisee. Additionally, the proposed transferee must pay an initial training and materials fee of $10,000 upon signing the franchise agreement, reduced to $6,000 if the transferee is another Learningrx franchisee. Finally, the individual proposed transferee, or the principals of a proposed entity transferee, must execute a personal guarantee for the transferee's obligations.