What constitutes a crime involving moral turpitude that could lead to Learningrx franchise termination?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xiv) The Franchisee, any owner of the Franchisee entity, Manager, or employee is convicted of a felony, a crime involving moral turpitude, any crime or offense that is reasonably likely, in the sole opinion of the Franchisor, to materially and unfavorably affect the LearningRx System, Marks, goodwill or reputation, or charged or convicted of any crime or misdemeanor involving children.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee, any owner of the franchisee entity, manager, or employee being convicted of a crime involving moral turpitude can lead to franchise termination. Additionally, conviction of a felony, any crime or offense that could unfavorably affect the Learningrx system, marks, goodwill, or reputation, or being charged or convicted of any crime or misdemeanor involving children are also grounds for termination.
This means that if a Learningrx franchisee, or anyone associated with the franchise in a significant way, is found guilty of certain types of crimes, Learningrx has the right to terminate the franchise agreement. The FDD specifies 'moral turpitude' as one category, which generally refers to acts that are considered inherently base, vile, or depraved, and violate accepted moral standards. The determination of what constitutes 'moral turpitude' is at the discretion of the Franchisor.
This clause protects Learningrx's brand and reputation by ensuring that those associated with the franchise maintain a certain level of ethical and legal conduct. It also covers a broader range of offenses that could negatively impact the Learningrx system, giving the franchisor flexibility in addressing potential issues. Prospective franchisees should understand that their actions, and the actions of their employees, could have serious consequences for their franchise agreement.