What are some examples of confidential information that Learningrx franchisees are prohibited from revealing?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ining Procedures Workbook | 2013.09.25 | Print material | | TX0007440780 | PACE Student Manual | 2011.10.17 | Print material |
Proprietary Information:
You may never, during the Initial Term, any Renewal Term, or after the Franchise Agreement expires, or is terminated, reveal any of our confidential information to another person or use it for any other person or business. You may not copy any of our confidential information or give it to a third-party except as we authorize. All persons affiliated with you must sign our Confidentiality and Covenant Not to Compete Agreement (Attachment IX) to the Franchise Agreement).
Our confidential information will include services, technologies and procedures relating to the operation of a LearningRx; systems of operation, services, programs, products, procedures, policies,
standards, techniques, requirements and specifications which are part of the LearningRx System; the Operations Manual: methods of advertising and promotion: instructional materials; and other matters.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You or an onsite manager ("Manager"), both of whom have completed our training program, must directly supervise and participate in the actual day-to-day operation the Center. Neither you nor your Manager may have an interest or business relationship with any of our business competitors. If you are an entity, we do not require that your designated Manager own an equity interest in such entity. However, your designated Manager and each of your officers, directors, partners, shareholders or members (and, if you are an individual, immediate family members) must execute our standard Confidentiality and Covenant Not to Compete Agreement, a copy of which is attached to the Franchise Agreement as Attachment IX. You must complete background checks on all of your employees in accordance with the specifications described in the Operations Manual. Other than the above, we make no other recommendations and have no other requirements regarding employment or other written agreements between you and your employees.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 37–40)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are prohibited from revealing confidential information during the Initial Term, any Renewal Term, or even after the Franchise Agreement expires or is terminated. This restriction extends to using the confidential information for any other person or business, copying it, or providing it to a third party without authorization from Learningrx. All individuals affiliated with the franchisee must sign a Confidentiality and Covenant Not to Compete Agreement.
Confidential information includes a wide array of proprietary assets related to the Learningrx system. Examples include services, technologies, and procedures for operating a Learningrx center, systems of operation, services, programs, products, procedures, policies, standards, techniques, requirements, and specifications. The Operations Manual, methods of advertising and promotion, and instructional materials are also considered confidential.
Furthermore, the Learningrx FDD specifies that the Operations Manual, electronic information and communications, sales and promotional materials, the development and use of the Learningrx System, standards, specifications, policies, procedures, information, concepts and systems, knowledge of and experience in the development, operation and franchising of Learningrx Centers, formulations for and packaging of products, and training and techniques used to provide services sold at Learningrx Centers, information concerning product and service sales, operating results, financial performance and other financial data of Learningrx Centers and other related materials are proprietary and confidential. Some of this information may also be designated as trade secrets. Franchisees must maintain the confidentiality of both Confidential Information and Trade Secrets, and implement reasonable procedures to prevent unauthorized disclosure.