Where will arbitration proceedings be conducted for Learningrx franchise disputes?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
s (in their respective capacity) and the Franchisee (and its owners and guarantors, if applicable) arising out of or related to: (1) this Agreement or any other agreement between the parties or any provision of such agreements; (2) the relationship of the parties hereto; (3) the validity of this Agreement or any other agreement between the parties or any provision of such agreements; or (4) any Licensed Method, shall be submitted for arbitration on demand of either party. Such arbitration proceedings shall be conducted in Denver, Colorado, and by one arbitrator chosen by the parties and experienced in franchise law. If the parties are unable to agree to the selection of an arbitrator within ten business days of the date of any written demand for arbitration made hereunder. The parties shall each select one arbitrator and the two selected arbitrators shall select a single arbitrator to hear the matter. The parties' consent to the use of the services of Judicial Arbitration Group, Inc. or its successor or the American Arbitration Association to administer the arbitration.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, arbitration proceedings will generally be conducted in Denver, Colorado. The arbitrator will be a single individual chosen by both parties, who should be experienced in franchise law. If the parties cannot agree on an arbitrator within ten business days of a written demand for arbitration, each party will select an arbitrator, and those two arbitrators will then select a single arbitrator to hear the case.
The FDD specifies that the parties consent to using the services of Judicial Arbitration Group, Inc. or its successor, or the American Arbitration Association (AAA) to administer the arbitration. The arbitration itself will be conducted following the then-current Commercial Arbitration Rules of the American Arbitration Association. The arbitrator has the authority to award appropriate relief, including monetary damages (with interest on unpaid amounts), specific performance, injunctive relief, and attorney's fees and costs.
However, the Learningrx Franchise Agreement provides an exception for franchisees in California. For these franchisees, the arbitration will still occur in Colorado, but the costs will be borne by both parties. This modification is part of the Multi-State Addendum and aims to comply with applicable state laws. Prospective franchisees should carefully review the dispute resolution section and any addenda specific to their state to fully understand the arbitration process and potential costs.