Does the Learningrx agreement create an employment relationship between the Franchisor and the Spousal Affiliate?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Spousal Affiliates acknowledge and agree that Spousal Affiliates are signing this Agreement as a condition for receiving access to, and the ability to use, Franchisor's confidential information in the performance of Spousal Affiliates' duties and obligations as an owner, spouse, employee or contractor of Franchisee and that the execution of this Agreement will not be deemed to create an employment relationship between Franchisor and Spousal Affiliates and Franchisor. Spousal Affiliates hereby waive, to the greatest extent permitted by federal law and the law of the state or states in which Spousal Affiliates reside and are employed by Franchisee, any claim that Spousal Affiliates may have to be deemed to be an employee of Franchisor by virtue of signing this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the agreement signed by the Spousal Affiliate is not intended to create an employment relationship between the Franchisor and the Spousal Affiliate. The Spousal Affiliate acknowledges that signing the agreement is a condition for accessing and using Learningrx's confidential information in their role as an owner, spouse, employee, or contractor of the Franchisee.
The Spousal Affiliate explicitly waives any claim, to the extent permitted by law, that they might be considered an employee of Learningrx due to signing the agreement. This waiver applies under both federal law and the laws of the state where the Spousal Affiliate resides and is employed by the Franchisee. This provision aims to clarify that the Spousal Affiliate's access to confidential information does not automatically make them an employee of Learningrx.
This is a fairly standard practice in franchising, where franchisors want to protect their trade secrets without inadvertently creating employment relationships with individuals who are primarily connected to the franchisee. By including this clause, Learningrx seeks to avoid potential legal issues related to employment law, such as claims for benefits, wrongful termination, or other employment-related disputes from the Spousal Affiliate.