What dispute resolution methods are used by Learningrx?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Developer Agreement | Summary |
|---|---|---|
| u. Dispute resolution by | Section 10.01 | Except for certain claims, all disputes must be |
| arbitration or mediation | arbitrated. | |
| v. Choice of forum | Section 10.02 | Mediation, arbitration and actions for injunctive relief, claims based on the Marks, or on covenants not to compete must be in the State of Colorado. (Subject to State law)* |
| w. Choice of law | Section 10.02 | Colorado law applies. (Subject to State law)* |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by | Section 16 | Except for certain claims, all disputes must be |
| arbitration or mediation | mediated and then arbitrated. | |
| v. Choice of forum | Section 16.06 | Mediation, arbitration and actions for injunctive relief, claims based on the Marks, or on covenants not to compete must be in the State of Colorado. (Subject to State law)* |
| w. Choice of law | Section 16.06 | Colorado law applies. (Subject to State law)* |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, dispute resolution is addressed in both the Area Developer Agreement and the Franchise Agreement. Except for certain claims, all disputes arising from the Area Developer Agreement must be arbitrated. For the Franchise Agreement, disputes must first be mediated and then arbitrated.
For both agreements, the choice of forum for mediation, arbitration, and actions for injunctive relief, claims based on the Marks, or on covenants not to compete must be in the State of Colorado, subject to state law. Additionally, Colorado law applies to these agreements, also subject to state law.
This means that if a Learningrx franchisee has a dispute with the franchisor, they will likely have to go through arbitration or mediation in Colorado, which could involve travel and legal expenses. The franchisee should be aware of these requirements and consider the potential costs and inconvenience before investing in a Learningrx franchise.