Who does the Learningrx agreement benefit and bind?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
the years | ended September | 30, 2023 | and 2022, respectively. | Deferred |
ATTACHMENT VIII(b) to FRANCHISE AGREEMENT
SPOUSAL AND DOMESTIC PARTNER CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT
Instructions: This "Spousal and Domestic Partner Confidentiality and Covenant Not to Compete Agreement" must be completed and signed by the spouses or domestic partners of the equity owners of the Franchisee. The signed original(s) of the Agreement must then be immediately delivered to the Franchisor by the Franchisee.
| This Agreement is made and entered into between LearningRx Franchise Corporation, ("Franchisor"), ("Franchisee"), and ("Spousal Affiliate"). | |
|---|---|
| RECITALS | |
| WHEREAS, | |
| Franchisor has developed a unique system (the "System") and is engaged in | |
| the business of offering, selling or granting franchises or licenses for the operation of a location to | |
| provide education services, including but limited to (a) learning enhancement courses, programs or | |
| products, (b) brain training or cognitive | |
| training courses, programs or products and (c) math and | |
| reading training courses, programs, or products ("Business"), known as "LearningRx Training | |
| CentersSM | |
| "; |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchise agreement primarily involves LearningRx Franchise Corporation as the franchisor and the franchisee. Additionally, a "Spousal Affiliate" may also be party to the agreement. The agreement outlines the rights and responsibilities of both parties, granting the franchisee the right to develop a LearningRx Business using the franchisor's system, licensed marks, and trade secrets.
The agreement is designed to ensure that the franchisee operates the Learningrx business according to the franchisor's standards and guidelines. This includes using the Learningrx system, trademarks, and trade secrets appropriately. The agreement also includes provisions to protect Learningrx's brand and reputation, such as covenants not to compete, which restrict the franchisee's ability to engage in similar businesses during and after the term of the agreement.
Furthermore, the spouse or domestic partner of the franchisee's owner may be required to personally guarantee the franchisee's performance under the agreement. This means that the spouse or domestic partner agrees to be personally bound by the terms of the agreement and liable for any breaches. However, this obligation may be limited in certain circumstances, such as if the spouse becomes widowed and does not have an ownership interest in the franchise. The agreement also specifies that it contains the entire understanding of the parties and can only be modified in writing with the consent of all parties involved.