Does the dispute resolution clause in the Learningrx agreement survive the termination or expiration of the agreement?

According to Learningrx's 2025 Franchise Disclosure Document, the dispute resolution clause within the franchise agreement does indeed survive the termination or expiration of the agreement. This means that even after the franchise term ends, whether through standard expiration or earlier termination, the agreed-upon method for resolving disputes (arbitration) remains in effect for any conflicts that may arise related to the franchise agreement.

Specifically, the FDD states that any arbitration will be conducted following the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator is empowered to award appropriate relief, including monetary damages (with interest), specific performance, injunctive relief, and attorney's fees and costs. However, there is a limitation: the arbitrator cannot award any party more than $50,000 in damages, including costs and attorney's fees. Additionally, the arbitrator cannot make awards barred by the "Limitation of Claims" section of the agreement.

This survival clause ensures that both Learningrx and the franchisee have a clear and binding process for resolving disagreements even after the franchise relationship has formally ended. It provides a level of certainty and predictability, as the method of dispute resolution is predetermined. However, franchisees should be aware of the $50,000 damage cap and the "Limitation of Claims" section, as these could restrict the potential recovery in a dispute. Franchisees should seek legal counsel to fully understand the implications of these limitations.