What are the Learningrx Area Developer's obligations upon termination or nonrenewal of the agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Developer Agreement | Summary | |
|---|---|---|---|
| i. | Franchisee's obligations on termination/nonrenewal | Sections 9.02 | Obligations include complete de-identification, non-competition and payment of amounts due. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Item 17 details the Area Developer's obligations upon termination or nonrenewal. These obligations, as outlined in Section 9.02 of the Area Developer Agreement, include complete de-identification, adherence to non-competition covenants, and the payment of any outstanding amounts due to Learningrx.
De-identification means the Area Developer must remove all Learningrx branding and signage from their business premises and cease using Learningrx's intellectual property. The non-competition covenant restricts the Area Developer from engaging in any competing business for a period of 2 years after termination or expiration. This restriction applies within the Development Territory, adjacent counties, within 50 miles of the Development Territory, near another LearningRx Area Developer or LearningRx Training Center, and on the internet or other Multi-Area marketing channels. These restrictions may be subject to applicable state laws.
It is important for prospective Learningrx Area Developers to carefully review Section 9.02 of the Area Developer Agreement to fully understand the scope of these post-termination obligations. Understanding these obligations is crucial for planning their future business activities and financial responsibilities upon the end of the agreement. The FDD advises franchisees to read the full provisions in the Area Developer Agreement attached to the Disclosure Document.