Is additional compensation provided to the Learningrx franchisee for assigning proprietary rights to copyrightable works to the franchisor?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
7.7 Creative Ownership. Copyrightable works created by Franchisee or any of its owners, officers or employees in connection with the Business shall be the sole property of Franchisor. Franchisee assigns all proprietary rights, including copyrights, in these works to Franchisor without additional consideration. Franchisee hereby assigns and will execute such additional assignments or documentation to effectuate the assignment of all intellectual property, inventions, copyrights and trade secrets developed in part or in whole in relation to the Business, during the term of this Agreement, as Franchisor may deem necessary in order to enable it, at its expense, to apply for, prosecute and obtain copyrights, patents or other proprietary rights in the United States and in foreign countries or in order to transfer to Franchisor all right, title, and interest in said property. Franchisee shall promptly disclose to Franchisor all inventions, discoveries, improvements, creations, patents, copyrights, trademarks and confidential information relating to the Center which it or any of its owners, officers or employees has made or may make solely, jointly or commonly with others and shall promptly create a written record of the same. In addition to the foregoing, Franchisee acknowledges and agrees that any improvements or modifications, whether or not copyrightable, directly or indirectly related to the Business, shall be deemed to be a part of the Confidential Information and shall inure to the benefit of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees are required to assign all proprietary rights, including copyrights, for any copyrightable works created in connection with the business to Learningrx without receiving any additional compensation. This includes works created by the franchisee, their owners, officers, or employees.
This means that if a Learningrx franchisee or their staff develops any materials, inventions, or improvements related to the Learningrx business, the rights to those creations automatically belong to Learningrx. The franchisee must also disclose any inventions, discoveries, or improvements to Learningrx and create written records of them.
This clause ensures that Learningrx maintains control over its intellectual property and can protect its brand and system standards. It also states that any improvements or modifications to the business, whether copyrightable or not, become part of Learningrx's confidential information and benefit Learningrx. A prospective franchisee should be aware that they will not own any intellectual property they develop related to the Learningrx business and will not be compensated for assigning those rights to Learningrx.