Can Learningrx own or franchise LearningRx Centers outside of my designated territory?

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx retains the right to own, franchise, or license LearningRx Centers or remote training services at any location outside of a franchisee's designated territory, regardless of proximity. This means that while Learningrx will not establish or franchise another LearningRx Center within your territory as long as you comply with the Franchise Agreement, they can operate or franchise centers outside of it without restriction. This reservation of rights extends to Learningrx and its affiliates.

This policy has significant implications for a Learningrx franchisee. Even if a franchisee performs well and meets all obligations, Learningrx can still establish competing centers nearby, just outside the protected territory. This could potentially draw customers away and impact the franchisee's business. The franchisee's focus should be on maximizing their market share within their territory, as Learningrx retains considerable freedom to expand elsewhere.

Furthermore, Learningrx reserves the right to use alternative channels of distribution, such as the Internet, to sell products or services, even within a franchisee's territory. While Learningrx will offer the order to the franchisee at a set price, if the franchisee cannot fulfill the order, Learningrx or a third party can fulfill it without compensating the franchisee. This highlights the importance of understanding the scope of the protected territory and the potential for competition from Learningrx's other activities.

In summary, while Learningrx grants a territory, it retains substantial rights to operate and franchise outside that territory, as well as to utilize alternative distribution channels within it. Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Learningrx franchise.