What agreements must a Learningrx franchisee obtain from Franchisee Affiliates?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee has agreed to obtain from those Spousal Affiliates written agreements protecting the Trade Secrets and the System against unfair competition; and,
CONFIDENTIALITY AGREEMENT
COVENANTS NOT TO COMPETE
15.1 Covenants Not to Compete. During the term of this Agreement and for two (2) years after termination, transfer, or expiration of this Agreement for any reason, Franchisee agrees that neither Franchisee, nor any manager of Franchisee, any person associated with Franchisee, including officers, directors, shareholders, partners, members, trustees, employees or agents, and any members of Franchisee's immediate families (collectively "Franchisee Affiliates"), will (i) have any direct or indirect controlling interest as a legal or beneficial owner in a Competitive Business (as hereinafter defined); (ii) perform services as a director, partner, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or (iii) divert or attempt to divert any business related to, or any customer or account of the LearningRx Training Center, Franchisee's Business, Franchisor's business, the business of any affiliate of Franchisor or any other franchisee licensed by Franchisor, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Franchisor or another franchisee licensed by Franchisor, to any Competitive Business by any direct inducement or otherwise. During the term of this Agreement, this Covenant Not to Compete applies anywhere in the United States.
COVENANTS NOT TO COMPETE
The term "Competitive Business" as used in this Agreement will mean any business offering, or granting franchises or licenses to others to provide: (i) learning enhancement courses, programs or products; (ii) brain training or cognitive training courses, programs or products; or (iii) math and reading training courses, programs, or products.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee must obtain both a Confidentiality Agreement and Covenants Not to Compete from their Franchisee Affiliates. Franchisee Affiliates include managers, persons associated with the franchisee (such as officers, directors, shareholders, partners, members, trustees, employees, or agents), and members of the franchisee's immediate family. These agreements are designed to protect Learningrx's trade secrets, system, and goodwill.
The Confidentiality Agreement ensures that Franchisee Affiliates maintain the confidentiality of Learningrx's trade secrets, including Operations Manuals, marketing techniques, and data compilations. Franchisee Affiliates must not disclose these trade secrets, make copies of related documents without permission, or use the information outside the scope of their association with the Learningrx franchise. Upon request or termination of employment, they must surrender any materials containing trade secrets.
The Covenants Not to Compete prevent Franchisee Affiliates from engaging in any Competitive Business that offers learning enhancement, brain training, or cognitive training courses, programs, or products. During their association with the Learningrx franchise, this covenant applies anywhere in the United States. For two years after termination, it applies within the franchisee's territory, adjacent counties, a 50-mile radius of any Learningrx center, and on the Internet or other multi-area marketing channels. These covenants aim to protect Learningrx from unfair competition and the diversion of business or employees.