Must Learningrx customers be located in the franchisee's territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will also have the right to service any persons in the Territory, regardless of the method of sales, subject to Franchisor's express reservation of rights set forth in Section 4.5.
Source: Item 16 — RESTRICTIONS ON WHAT FRANCHISEE MAY SELL (FDD pages 40–42)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees have the right to service individuals within their designated territory, irrespective of the sales method employed. However, this is subject to specific rights retained by Learningrx.
The Learningrx franchisee's territory is defined by population size, with a Micro Franchise covering less than 100,000 people and a Standard Franchise encompassing 100,000 to 200,000 people. The territory's boundaries can be marked by streets, highways, counties, or zip codes. While Learningrx will not operate permanent Learningrx Centers or grant franchises for similar businesses within the franchisee's territory as long as minimum revenue requirements are met, they retain the right to operate outside the territory at any time.
Learningrx also reserves the right to use the Learningrx marks and system to sell products or services, similar to those offered by the franchisee, through alternative channels of distribution both within and outside the territory. These channels include retail locations, stores, kiosks, malls, airports, special events, television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet. The franchisee is restricted from independently using these alternative channels for sales within or outside their territory.
It's important to note that pre-existing PACE Licensees and Clinical Licensees may already be operating within a franchisee's territory, offering educational services under different trademarks and trade names. These licensees have the right to continue their operations, which will not be considered a breach of the Franchise Agreement.