What is the deadline for delivering signed Confidentiality & Covenant Not to Compete Agreements to Learningrx?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
7.5 Confidentiality and Covenant Not to Compete Agreements.
- (a) If the Franchisee is an entity, then the following individuals must sign Franchisor's standard Confidentiality & Covenant Not to Compete Agreement (Attachment IX) before performing any work at the Business or otherwise having access to Franchisor's Confidential Information: each Member, shareholder, officer, director and partner of the entity, each spouse of such Member, shareholder, officer, director and partner, every manager of the Franchisee or Area Developer, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information.
- (b) If the Franchisee is not an entity, then the following individuals must sign Franchisor's standard Confidentiality & Covenant Not to Compete Agreement (Attachment IX) before performing any work at the Business or otherwise having access to Franchisor's Confidential Information: the spouse of the Franchisee, every manager of the Franchisee, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information. A copy of all such signed agreements shall be delivered to Franchisor within 1 week of their execution.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if the franchisee is an entity, certain individuals such as members, shareholders, officers, directors, partners, their spouses, managers, and guarantors must sign the standard Confidentiality & Covenant Not to Compete Agreement. The same requirement applies if the franchisee is not an entity, extending to the franchisee's spouse, managers, guarantors, and employees with access to confidential information.
The signed agreements must be delivered to Learningrx within one week of their execution. This requirement ensures that all relevant parties are bound by the confidentiality and non-compete terms promptly after agreeing to them. Attachment IX of the Franchise Agreement contains the standard Confidentiality & Covenant Not to Compete Agreement.
This provision is crucial for Learningrx to protect its trade secrets and goodwill. By requiring these agreements, Learningrx aims to prevent unauthorized use or disclosure of confidential information and to restrict individuals from engaging in competitive activities that could harm the franchise system. Franchisees must ensure timely compliance with this requirement to avoid potential breaches of the franchise agreement.