factual

What agreement must the Learningrx Area Developer obtain from 'Franchisee Affiliates'?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 9.07.

Additional Agreement.

Area Developer shall obtain, from the individuals defined in the Franchise Agreement as "Franchisee Affiliates", the execution of a "CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT" from each such individual.

A copy of the "CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT" is attached to the Franchise Agreement and is identified as Attachment VIII.

Area Developer shall then immediately forward each such signed Agreement to Franchisor:

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, an Area Developer must obtain a signed "CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT" from individuals defined in the Franchise Agreement as "Franchisee Affiliates." This agreement is included as Attachment VIII to the Franchise Agreement. The Area Developer is then required to immediately forward each signed agreement to Learningrx.

This requirement ensures that individuals associated with the franchisee, who may have access to Learningrx's trade secrets and operational methods, are legally bound to protect this confidential information and refrain from engaging in competitive activities. By securing these agreements, Learningrx aims to safeguard its business interests and maintain the integrity of its franchise system.

The "Franchisee Affiliates" are defined as any manager of Franchisee, any person associated with Franchisee, including officers, directors, shareholders, partners, members, trustees, employees or agents, and any members of Franchisee's immediate families. The agreement ensures that these individuals will not have any direct or indirect controlling interest as a legal or beneficial owner in a Competitive Business; perform services for a Competitive Business; or divert any business related to Learningrx.

The non-compete agreement applies during the term of the agreement and for two years after termination, transfer, or expiration of the agreement. This covenant applies within the Franchisee's Territory; within counties adjacent to Franchisee's Territory; within a fifty mile radius from the boundary of Franchisees Territory; on the Internet or on any other Multi-Area Marketing channels used by Franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.