Does Learningrx agree to any limitations regarding consent to transfer or assignment by the franchisee under Section 14.4 of the Franchise Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is proposing to transfer a partial interest in Franchisee and Franchisor has an option to purchase or a right of first refusal with respect to that partial interest, Franchisor may exercise such option or right only if the proposed transferee is not a current owner or family member of a current owner of Franchisee. If the Franchisor's consent is required for any transfer (full or partial), Franchisor will not unreasonably withhold such consent. In the event of an approved transfer of the franchise interest or any portion thereof, the transferor will not be liable for the actions of the transferee franchisee.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if a franchisee proposes to transfer a partial interest in their franchise, Learningrx has an option to purchase or a right of first refusal. However, Learningrx can only exercise this option if the proposed transferee is not a current owner or a family member of a current owner of the Learningrx franchise.
Furthermore, if the Learningrx franchisor's consent is required for any transfer, whether full or partial, Learningrx will not unreasonably withhold such consent. This indicates that Learningrx acknowledges some limitations regarding consent to transfer or assignment by the franchisee.
In the event that a transfer of the Learningrx franchise interest is approved, the transferor will not be held liable for the actions of the franchisee who is the transferee. This provides a level of protection for the original franchisee after the transfer is completed.