What is the effect of the Learningrx Franchise Agreement after the addendum is signed?

According to the 2025 Learningrx Franchise Disclosure Document, the Multi-State Addendum modifies the Franchise Disclosure Document and may supersede certain portions of the Franchise Agreement and Area Development Agreement to the extent required by applicable state law. This means that the original franchise agreement is subject to changes and clarifications based on state-specific regulations outlined in the addendum.

For example, the addendum includes specific modifications for franchisees in California, noting that certain provisions in the franchise agreement, such as those related to termination upon bankruptcy, covenants not to compete, liquidated damages clauses, and binding arbitration, may not be enforceable under California law. Similarly, for Virginia, the addendum clarifies that provisions allowing the franchisor to cancel a franchise without reasonable cause or use undue influence to induce a franchisee to surrender rights may not be enforceable under the Virginia Retail Franchising Act. In Rhode Island, any provision restricting jurisdiction or venue to a forum outside the state or requiring the application of other state's laws is voided.

These modifications ensure that the Learningrx franchise agreement complies with local laws, providing franchisees with additional rights and protections as mandated by their state. Prospective franchisees should carefully review the addendum specific to their state to understand how it alters the original franchise agreement and to be aware of their rights and obligations under the modified agreement. The addendum also includes specific statements that no statement signed by a franchisee can waive claims under state franchise law.