Is Learningrx's assistance in site selection a warranty regarding the property or lease?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.
Upon request, Franchisor will provide limited advice and assistance to Franchisee in selecting a site and analyzing a location and in negotiating a lease.
Franchisor will analyze a location by examining population density, traffic patterns, proximity of the proposed location to any other LearningRx Centers, or any other reasonable criteria, as set forth in Section 10.2.
Franchisee agrees that the location of the Center is a factor in the potential for success of the Business and the location will be located close to the Center of the Territory.
Franchisor may reject any location in its discretion, but consent will not be unreasonably withheld.
If Franchisee and Franchisor cannot agree on the site selection, then Franchisee must select two (2) alternative sites.
Franchisor shall provide Franchisee with an evaluation of each site as described above.
Franchisor shall approve or disapprove Franchisee's proposed site within thirty (30) days of the date Franchisor receives written notice of the proposed site from Franchisee.
Any site not approved in writing by Franchisor within the thirty (30) day time period shall be deemed disapproved.
However, Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, while Learningrx offers assistance in site selection, this assistance does not constitute a warranty regarding the property or the lease. The franchisee is ultimately responsible for locating a site for the business and negotiating the lease. Learningrx will provide limited advice and assistance in selecting a site, analyzing the location, and negotiating the lease upon request.
Learningrx analyzes potential locations based on factors such as population density, traffic patterns, and proximity to other Learningrx centers. They may reject a location at their discretion, although consent will not be unreasonably withheld. If the franchisee and Learningrx cannot agree on a site, the franchisee must select two alternative sites for Learningrx to evaluate. Learningrx is required to approve or disapprove a proposed site within 30 days of receiving written notice from the franchisee; failure to do so within this timeframe results in the site being deemed disapproved.
This means that while Learningrx offers support during the site selection process, the franchisee bears the responsibility of finding a suitable location and securing a lease. The franchisee should not rely solely on Learningrx's assistance as a guarantee of the property's suitability or the lease terms. It is crucial for the franchisee to conduct their own due diligence and seek independent professional advice to ensure the location meets their business needs and the lease agreement is favorable.