What form will the individual franchise agreement be in between Learningrx and the Area Developer?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
niformity of those standards at all facilities which operate pursuant to the System and thereby to protect and preserve the goodwill of the System and the Marks; and
WHEREAS, Area Developer understands and acknowledges the importance of Franchisor's uniformly high standards of quality and service and the necessity of operating the Centers in strict conformity with Franchisor's quality control standards and specifications.
NOW THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other party set forth herein, hereby mutually agree as follows:
1. GRANT
- 1.01. Appointment. Franchisor hereby grants to Area Developer the right and license to develop, construct, operate and manage Centers in strict accordance with the System and under the Marks within the Development Schedule and Territory described in Schedule A. Each Center shall be operated according to the terms of the individual franchise agreement with respect thereto.
- 1.02. Territory. If the Area Developer complies with the terms of this Agreement, the Development Schedule and the individual franchise agreement for each Center, then Franchisor will not franchise or license others, nor will it itself directly or indirectly develop, own, lease, construct or operate in any manner, any Centers in the Development Territory during the term of this Agreement; however, Franchisor reserves the right to sell products and services, under the Marks or any other marks, through any other retail location, including kiosks, malls, airports, college campuses, at special events or through any other channels of distribution, including through mail order, catalogue sales or over the Internet. Upon the expiration or termination of this Agreement, the Area Developer will no longer have a Development Territory and each Center will be limited to operation in its own territory described in the individual franchise agreement.
- 1.03. Governing Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, each Learningrx center will be governed by an individual franchise agreement executed by Learningrx and the Area Developer for each specific center. The Area Developer must sign the then-current form of the franchise agreement for each center that they develop under the Area Development Agreement. The initial franchise agreement must be signed at the same time as the Area Development Agreement.
Learningrx requires that the Area Developer pay a development franchise fee equal to thirty-five percent of the then-current initial franchise fee and initial training and materials fee when signing each franchise agreement to open a new center, excluding the franchise agreement for the Area Developer's first center. Furthermore, the Area Developer cannot start construction on, or open, any center until the entire Development Franchise Fee for that center has been paid and the individual franchise agreement has been executed by both parties.
This agreement ensures that each Learningrx center operates under a standardized franchise agreement, allowing Learningrx to maintain uniformity across all locations. Prospective Area Developers should carefully review the then-current form of the franchise agreement to understand their obligations, the fees involved, and the standards required for operating each Learningrx center. They should also note that the terms of franchise agreements may vary over time, and the 'then-current' form will apply to each new center they develop.