Can Learningrx or its affiliates own or operate a LearningRx Training Center in any location, even if it encompasses the franchisee's Satellite Location site?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Retention of Rights.
Franchisor, on behalf of it and its Affiliates, reserves all rights not specifically granted to Franchisee pursuant to this Addendum, all without compensation to Franchisee, including but not limited to the following: except as provided for in the Franchise Agreement between Franchisor and Franchisee, Franchisor and its Affiliates may own or operate, or license or franchise others to own or operate a LearningRx Training Center in any location, even if that location creates a territory which encompasses Franchisee's Site.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx and its affiliates retain the right to own, operate, license, or franchise others to operate a LearningRx Training Center in any location. This right extends even to locations that create a territory encompassing a franchisee's Satellite Location site. This means that a Learningrx franchisee's satellite location is not protected from competition from Learningrx itself or from other franchisees.
This policy has significant implications for prospective Learningrx franchisees. While a franchisee may establish a Satellite Location, Learningrx reserves the right to grant a territory to another franchisee that includes the Satellite Location site at any time. The franchisee acknowledges that they will not receive an exclusive or protected territory for their Satellite Location.
Furthermore, if Learningrx licenses the right to own and operate a LearningRx Center to another franchisee, and that territory encompasses the existing franchisee's Satellite Location site, the franchisee must shut down their Satellite Location. This shutdown must occur on or before the date the new franchisee opens their LearningRx Training Center, and the existing franchisee must transfer all customers to the new franchisee. The original franchisee will not receive any compensation or reimbursement for the Satellite Location Fee in this event.
This lack of territorial protection for Satellite Locations is a notable risk for Learningrx franchisees. It is essential for prospective franchisees to understand that their investment in a Satellite Location could be jeopardized if Learningrx or another franchisee establishes a LearningRx Training Center in the same area. Franchisees should carefully consider the potential for such a scenario and its financial implications before investing in a Satellite Location.