In the event of a conflict between the Learningrx Development Agreement and any franchise agreement regarding initial training, initial franchise fees, or equity interests, which agreement governs?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.03. Conflict. Where this Agreement and any franchise agreement between the parties conflict with respect to initial training, the amount or payment terms of Initial Franchise Fees or equity interests held by the franchisee or operating partners and unit managers, the terms of this Agreement shall govern.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the terms of the Development Agreement will govern in the event of a conflict with any franchise agreement regarding initial training, the amount or payment terms of Initial Franchise Fees, or equity interests held by the franchisee or operating partners and unit managers. This is according to section 11.03 of the FDD.
This means that if there are discrepancies between the Development Agreement and the franchise agreement on these specific issues, the Development Agreement takes precedence. This is an important consideration for Area Developers, as it clarifies which agreement's terms will dictate these key aspects of their investment and operational relationship with Learningrx.
This clause aims to provide clarity and prevent disputes by establishing a hierarchy between the agreements. Prospective Area Developers should carefully review both the Development Agreement and the franchise agreement to understand their respective terms and how they interact, especially concerning initial training, fees, and equity interests. Understanding this hierarchy is crucial for making informed decisions and managing expectations regarding the financial and operational aspects of developing Learningrx centers.