What is the Learningrx Area Developer required to do with the signed 'CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT'?

According to Learningrx's 2025 Franchise Disclosure Document, an Area Developer must obtain a signed "CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT" from individuals defined as "Franchisee Affiliates" in the Franchise Agreement. A copy of this agreement is included as Attachment VIII to the Franchise Agreement. After obtaining the signed agreement, the Area Developer is required to immediately forward each signed agreement to Learningrx.

This requirement ensures that Learningrx protects its confidential information and trade secrets. By having Franchisee Affiliates sign the agreement, Learningrx aims to prevent unauthorized use or disclosure of sensitive business information. The Area Developer plays a crucial role in this process by collecting the signed agreements and promptly submitting them to Learningrx.

The definition of "Franchisee Affiliates" is found within the Franchise Agreement, so the Area Developer should carefully review that section to identify all individuals who must sign the confidentiality and non-compete agreement. This may include family members, managers, or other individuals associated with the franchisee who have access to Learningrx's confidential information. The Area Developer should also be aware of Attachment VIII, which contains the specific terms of the agreement.

Failure to comply with this requirement could have legal and financial repercussions for the Area Developer. If a Franchisee Affiliate violates the confidentiality or non-compete provisions, Learningrx may take legal action against both the affiliate and the Area Developer for failing to ensure compliance. Therefore, it is essential for Area Developers to understand their obligations and diligently follow the procedures outlined in the Franchise Agreement.