Does the Learningrx area developer have the right to grant sub-franchises in the Development Territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03. Governing Agreement. This Agreement is not a franchise agreement and Area Developer shall have no right to use, in any manner, the Marks or System by virtue of this Agreement. Each Center will be governed by the individual franchise agreement executed by Franchisor and Area Developer for each Center.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the Area Developer does not have the right to grant sub-franchises. The agreement between Learningrx and the Area Developer grants the Area Developer the right to develop, construct, operate, and manage Learningrx Centers within a specific Development Schedule and Territory. However, each center must be operated under an individual franchise agreement.
Specifically, section 1.03 states that the Area Developer agreement is not a franchise agreement, and the Area Developer has no right to use the Learningrx marks or system by virtue of the Area Developer agreement. Each Learningrx center must have its own individual franchise agreement executed by Learningrx and the Area Developer.
This means that while an Area Developer can open and operate multiple Learningrx centers within their designated territory, each center requires a separate franchise agreement directly with Learningrx. The Area Developer cannot sub-franchise or allow another party to operate a Learningrx center under their Area Developer agreement.