Besides the exceptions described, has Learningrx been the subject of a civil action alleging fraud, embezzlement, fraudulent conversion, or misappropriation of property?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Add to ITEM 3 of the Franchise Disclosure Document as follows, as the last paragraph:
- (A) Except as described above, neither we, our predecessors, a person identified in ITEM 2 nor an affiliate offering franchises under our principal trademark has an administrative, criminal or civil action pending against that person alleging: a felony; a violation of a franchise, antitrust or securities law; fraud, embezzlement, fraudulent conversion, misappropriation of property; unfair or deceptive practices or comparable civil or misdemeanor allegations; or any pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- (B) Except as described above, neither we, our predecessors, a person identified in ITEM 2, nor an affiliate offering franchises under our principal trademark has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten (10) year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations.
- (C) Except as described above, neither we, our predecessor, a person identified in ITEM 2, nor an affiliate offering franchises under our principal trademark is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx includes an addendum to Item 3 that addresses civil actions. Specifically, Learningrx states that, except as described elsewhere, neither Learningrx, its predecessors, individuals identified in Item 2, nor any affiliate offering franchises under Learningrx's principal trademark, has any administrative, criminal, or civil actions pending against them alleging a felony; a violation of franchise, antitrust, or securities law; fraud, embezzlement, fraudulent conversion, misappropriation of property; unfair or deceptive practices; or any pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
Learningrx also states that, except as described elsewhere, neither Learningrx, its predecessors, individuals identified in Item 2, nor any affiliate offering franchises under Learningrx's principal trademark has been convicted of a felony or pleaded nolo contendere to a felony charge. Additionally, within the ten-year period immediately preceding the application for registration, they have not been convicted of or pleaded nolo contendere to a misdemeanor charge or been the subject of a civil action alleging violation of franchise, antifraud, or securities law; fraud, embezzlement, fraudulent conversion, or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Furthermore, Learningrx states that, except as described above, neither Learningrx, its predecessor, a person identified in Item 2, nor an affiliate offering franchises under Learningrx's principal trademark is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency. They are also not subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent. This information is crucial for prospective franchisees to assess the legal and ethical standing of Learningrx and its associated parties.