Does the Learningrx agreement include a waiver of the right to a trial by jury for both the franchisor and franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 of the franchise disclosure document, Section 16.2 of the Franchise Agreement and Section 10 of the Area Developer requiring you to consent to a waiver of trial by jury is considered unenforceable in the State of North Dakota under Section 51-19-09 of the North Dakota Franchise Investment Law, and are deleted in their entirety.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the franchise agreement includes a clause that requires franchisees to waive their right to a trial by jury. However, this waiver is explicitly considered unenforceable in the State of North Dakota due to Section 51-19-09 of the North Dakota Franchise Investment Law.
This means that, outside of North Dakota, Learningrx franchisees may be bound by a clause in the franchise agreement that prevents them from pursuing a trial by jury in the event of a dispute with the franchisor. Instead, disputes may be resolved through alternative methods such as arbitration or bench trials, where a judge makes the final decision.
For prospective Learningrx franchisees in states other than North Dakota, it's crucial to understand the implications of waiving the right to a jury trial. This waiver could affect how legal disputes are resolved and may limit the franchisee's options for seeking recourse against Learningrx. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement, especially concerning dispute resolution.