What conditions must be met for Learningrx to approve a transfer by a franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
rtain important provisions of the franchise and related agreements. You should read the full provisions in the Franchise Agreement attached to this Disclosure Document.**
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| k. “Transfer” by franchisee – | Section 14.03 | Includes transfer of contract or assets or |
| defined | ownership change. | |
| l. Franchisor approval of | Section 14.04-14.06 | We have the right to approve all transfers but will |
| transfer by Franchisee | not unreasonably withhold approval. | |
| m. Conditions for franchisor approval of transfer | Section 14.04 | New Franchisee qualifies, Transfer Fee paid, the Training and Materials Fee is paid; purchase agreement approved, training arranged, general release signed by you*, and current agreement signed by new Franchisee. |
| n. Franchisor’s right of first refusal to acquire franchisee’s Business. | Section 14.07, Attachment XI | We can match any offer for your Business. |
| o. |
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, Learningrx has the right to approve all franchise transfers, but will not unreasonably withhold approval. For a standard franchise agreement, the conditions for Learningrx's approval of a transfer are that the new franchisee must qualify, the transfer fee must be paid, the training and materials fee must be paid, the purchase agreement must be approved, training must be arranged, a general release must be signed by the current franchisee, and the current agreement must be signed by the new franchisee.
For an Area Developer Agreement, the conditions for Learningrx's approval of a transfer are slightly different. The new area developer must qualify, all monetary obligations must be satisfied, the Area Developer Agreement must not be in default of any agreement, the transfer fee must be paid, the purchase agreement must be approved, training must be arranged, a general release must be signed by the current area developer, and the current agreement must be signed by the new area developer.
It is important for prospective franchisees to understand these conditions, as failure to meet them could result in Learningrx denying the transfer. This could have significant financial implications for the franchisee, especially if they are looking to sell their franchise. Prospective franchisees should carefully review Section 14.04-14.06 of the Franchise Agreement or Section 7.03 of the Area Developer Agreement, as applicable, to fully understand the conditions for transfer approval.