Does the Learningrx agreement specify who bears the cost of arbitration?

According to the 2025 Learningrx Franchise Disclosure Document, the standard agreement stipulates that arbitration will occur in Colorado, with costs borne by both parties. However, this condition applies specifically to franchisees operating in California, as detailed in the Multi-State Addendum.

For franchisees outside of California, the FDD states that the arbitrator has the right to award attorney's fees and costs to a party. Additionally, in any legal action to enforce the agreement, the unsuccessful party is responsible for covering all costs, expenses, and reasonable attorney's fees incurred by the successful party, including those associated with appeals. This fee allocation is determined by the court's final judgment.

Therefore, prospective Learningrx franchisees should be aware that the cost allocation for arbitration and legal disputes can vary. Franchisees in California will share arbitration costs, while those in other states may have these costs shifted to the unsuccessful party in a dispute, as determined by the arbitrator or court. It is important to understand these differences and their potential financial implications when entering into a franchise agreement with Learningrx.