Can Learningrx assign the franchise agreement to another entity?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The rights and remedies of Franchisor under this Agreement are fully assignable and transferable and shall inure to the benefit of its respective affiliates, successor and assigns. The respective obligations of Franchisee and Franchisee Affiliate hereunder may not be assigned by Franchisee or Franchisee Affiliate without the prior written consent of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx has the right to assign the franchise agreement. Specifically, Learningrx can freely transfer its rights and remedies under the agreement to its affiliates, successors, and assigns. This means Learningrx can sell the franchise system or transfer its rights to another company.
However, the franchisee does not have the same freedom. The Learningrx franchisee's obligations under the agreement cannot be assigned or transferred without Learningrx's prior written consent. This restriction applies to any form of transfer, whether voluntary or involuntary, including sales, pledges, or encumbrances.
This difference in assignability is typical in franchising. It protects Learningrx's interests by ensuring that any new franchisee meets their standards. However, it also means that a franchisee needs Learningrx's approval to sell their business, which could affect the franchisee's exit strategy.