Does the Learningrx agreement prevent an active officer of the Franchisee from owning stock?

According to Learningrx's 2025 Franchise Disclosure Document, the franchise agreement does not prevent an active officer or their family from owning a limited amount of stock in publicly traded companies. Specifically, an active officer of the franchisee or a family member can individually or collectively own up to a total of five percent (5%) of the stock of any company subject to the reporting requirements of Sections 11 or Subsection 14(d) of the Securities and Exchange Act of 1934.

This allowance provides some flexibility for franchisees and their families to invest in publicly traded companies without violating the terms of the franchise agreement. The exception is designed to avoid unduly restricting personal investment decisions while still protecting Learningrx's interests by preventing significant ownership in competing businesses.

It is important for prospective Learningrx franchisees to understand this provision, as exceeding the 5% ownership limit could potentially be considered a breach of the franchise agreement. Franchisees should ensure that their personal investment activities remain compliant with this clause to avoid any conflicts or legal issues with Learningrx.