What is the duration of the Intellectual Property License granted to Learningrx for franchising?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
LearningRx, Inc. has granted us a non-exclusive license ("Intellectual Property License") to use the intellectual property for purposes of franchising the System around the world. The Intellectual Property License extends for a one year period, commencing June 23, 2011, and the License Agreement
will automatically renew for subsequent one year periods provided that we are not in default or do not materially breach the Intellectual Property License by engaging in any activity which damages the Marks or the goodwill of the System.
Source: Item 13 — TRADEMARKS (FDD pages 35–37)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Intellectual Property License extends for an initial term of one year, commencing on June 23, 2011. After the initial term, the Intellectual Property License automatically renews for subsequent one-year periods.
For a prospective Learningrx franchisee, this means that Learningrx's right to use its trademarks and system for franchising is dependent on the renewal of its Intellectual Property License. If Learningrx were to default or materially breach the Intellectual Property License by engaging in activities that damage the Marks or the goodwill of the System, the license may not be renewed, which could impact Learningrx's ability to grant franchises.
It is important to note that the renewal is contingent upon Learningrx remaining in good standing and not engaging in activities that could harm the trademarks or goodwill associated with the Learningrx system. This type of renewal structure is not uncommon in franchising, as it ensures that the franchisor maintains the right to use its intellectual property for franchising purposes, provided they adhere to the terms of the license agreement.