What agreement must the Learningrx designated manager and officers sign?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
e in the actual day-to-day operation the Center. Neither you nor your Manager may have an interest or business relationship with any of our business competitors. If you are an entity, we do not require that your designated Manager own an equity interest in such entity. However, your designated Manager and each of your officers, directors, partners, shareholders or members (and, if you are an individual, immediate family members) must execute our standard Confidentiality and Covenant Not to Compete Agreement, a copy of which is attached to the Franchise Agreement as Attachment IX. You must complete background checks on all of your employees in accordance with the specifications described in the Operations Manual. Other than the above, we make no other recommendations and have no other requirements regarding employment or other written agreements between you and your employees.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if the franchisee is a business entity, the designated manager and each of the officers, directors, partners, shareholders, or members must execute Learningrx's standard Confidentiality and Covenant Not to Compete Agreement. This agreement is included as Attachment IX to the Franchise Agreement. Additionally, if the franchisee is an individual, their immediate family members must also sign this agreement.
This requirement ensures that individuals in key positions within the Learningrx franchise are bound by confidentiality and non-compete obligations. This protects Learningrx's proprietary information and prevents individuals associated with the franchise from engaging in competitive activities during and after their involvement with the franchise.
Furthermore, each officer, director, shareholder, partner, and member, along with any individual owning 5% or greater interest in the business entity, must sign the Guaranty and Assumption of Franchisee's Obligations, which assumes their agreement to discharge all obligations and comply with all restrictions under the Franchise Agreement. The spouse or domestic partner of each owner of the franchisee will also need to sign the Spousal and Domestic Partner Guarantee and Assumption of Obligations. These agreements are included as Attachment V(a) and V(b) to the Franchise Agreement, respectively. These additional agreements provide Learningrx with further assurance that the franchisee's obligations will be met and that the brand's interests are protected.