factual

What constitutes 'good cause' for Learningrx to terminate a franchise agreement?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:

  • (c) A provision that permits us to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and Development Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to the 2025 Learningrx Franchise Disclosure Document, the definition of 'good cause' for termination can vary based on state laws. In general, 'good cause' includes a franchisee's failure to comply with any lawful provision of the Franchise Agreement or Development Agreement.

However, the franchisee must be given written notice of the failure and a reasonable opportunity to correct it. The FDD specifies that this cure period need not be more than thirty (30) days. This means that if a Learningrx franchisee violates a term of their agreement, Learningrx must provide written notice and allow them up to 30 days to fix the issue before terminating the agreement.

It's important to note that certain states, like Virginia and California, have franchise laws that may affect the enforceability of termination provisions. For example, in Virginia, any grounds for default or termination stated in the Franchise Agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable. Similarly, in California, the California Business and Professions Code provides rights to the franchisee concerning termination. Therefore, prospective Learningrx franchisees should be aware of the specific franchise laws in their state and how they may impact the termination provisions of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.