What constitutes a "Competitive Business" according to the Learningrx franchise agreement?

According to Learningrx's 2025 Franchise Disclosure Document, a "Competitive Business" is defined specifically within the context of the franchise agreement's covenants not to compete. This definition is crucial for franchisees and their affiliates, as it dictates what types of business activities are restricted during the term of the agreement and for a period of two years after its termination. Understanding this definition is essential to avoid violating the non-compete clauses.

Specifically, a "Competitive Business" includes any business that offers or grants franchises or licenses to others for providing services in three key areas: learning enhancement courses, programs, or products; brain training or cognitive training courses, programs, or products; and math and reading training courses, programs, or products. This definition is broad, covering various aspects of educational and cognitive training services.

This definition has significant implications for a Learningrx franchisee. During the term of the franchise agreement and for two years afterward, the franchisee and their affiliates are restricted from owning, operating, or being involved with any business that falls under this definition. This restriction applies within a specific geographic area, including the franchisee's territory, adjacent counties, and a 50-mile radius around any Learningrx center, as well as online. Prospective franchisees should carefully consider this non-compete agreement and how it might affect their future business endeavors, especially if they have prior experience or interests in the education or training sectors.