Is Learningrx allowed to establish another franchisee within my Learningrx territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ise Agreement, Section 5). The table of contents is attached as Exhibit F.
ITEM 12 TERRITORY
We will grant to you a territory ("Territory") defined by population size. A Micro Franchise has a population of less than 100,000; and a Standard Franchise has a population of 100,000 to 200,000 people, as determined by us. Your Territory may be delineated by boundary streets, highways, counties, or zip codes. We will not operate through our current trademarks, any permanent LearningRx Centers or grant franchises for a similar or competitive business within your Territory as long as you meet minimum revenue requirements, but we have the right to do so anywhere outside your Territory at any time. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also have preexisting PACE Licensees and Clinical Licensees offering educational services under different trademarks and trade names operating in your Territory. You will operate from 1 location approved by us and must receive our permission before relocating. We will grant approval to relocate if you are in compliance with the Franchise Agreement, you have paid all money owed to us and/or our affiliates, and the proposed location meets our site selection criteria as specified in the Operations Manual. Once established and unless otherwise agreed, the boundaries of your Territory will not be adjusted without our prior written consent regardless of whether the population of your Territory increases or decreases over time.
If you request to relocate your Center, this will be subject to our approval, which we have the right to grant or deny for any reason or no reason. Any relocation will be subject to the site selection and lease provisions contained in the Franchise Agreement and Operations Manual. You will not be required to pay us a relocation fee ("Relocation Fee") for the first request to relocate your Center within the Initial Term of the Franchise Agreement or any Successor Term. You will be required to pay us a Relocation Fee of $250 if you request to relocate your Center a second time within the Initial Term of the Franchise Agreement or any Successor Term. You will be required to pay us a Relocation Fee of $500 if you request to relocate your Center a third time within the Initial Term of the Franchise Agreement or any Successor Term. Any relocation of your Center will be at your sole expense. Our approval will, among other things, be based on the following factors: population density, income levels, general location guidelines, proximity of the proposed site to other LearningRx Centers, and the time it will take to relocate your Center.
Your Territory does not extend to, and you may not advertise independently on, the Internet or World Wide Web. We will maintain LearningRx Center Web pages, which will include information regarding your Center.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx grants a territory defined by population size, with Micro Franchises covering areas of less than 100,000 people and Standard Franchises covering 100,000 to 200,000 people. While Learningrx states that it will not operate permanent Learningrx Centers or grant franchises for similar businesses within a franchisee's territory as long as the franchisee meets minimum revenue requirements, this territory is not exclusive.
Learningrx retains several rights, including the right to operate Learningrx Centers or remote training services outside of the franchisee's territory, regardless of proximity. Learningrx also reserves the right to sell products or services similar to those offered by franchisees through alternate channels of distribution, such as retail locations, the Internet, or catalog sales, both within and outside the franchisee's territory.
To maintain the territory, a Learningrx franchisee must meet a minimum revenue quota, starting six months after opening. The minimum revenue quota is $50,000 for every 100,000 people in the territory for the first 12 months, increasing to $75,000 for the second 12 months, and $100,000 for each subsequent 12-month period. Failure to meet this quota may result in the loss of territory exclusivity, allowing Learningrx to offer a location to an additional franchisee within the original franchisee's territory.
In summary, while Learningrx aims to protect franchisees who meet their revenue goals, the agreement does allow for potential competition within the territory if a franchisee fails to meet the Minimum Revenue Quota. Additionally, Learningrx reserves significant rights to operate outside the traditional franchise model, even within a franchisee's territory, through alternative channels and other brands.