Is the Learningrx franchise granted to the franchisee an exclusive franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
0,000)) in the Territory for any twelve (12) month period thereafter in the Territory. Franchisee's failure to maintain the Minimum Annual Revenue Quota may result in loss of exclusivity for
the territory or the reduction or elimination of the Franchisee's Territory, or the termination of this Agreement, in Franchisor's sole discretion.
- 4.5 Reservation of Rights. Franchisee acknowledges that the Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
- (a) to own, use, operate and to license and Franchise others to use, the Marks and System for the operation of LearningRx Centers at any location other than in the Territory, regardless of proximity to the Territory;
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchise granted to a franchisee is non-exclusive. The document states that Learningrx retains specific rights, including the ability to operate or franchise others to operate Learningrx Centers outside the franchisee's territory, regardless of proximity.
Learningrx also retains the right to use and franchise the use of other trademarks or service marks, besides the Learningrx marks, in any location, including within the franchisee's territory. The only exception to this is for products provided directly from trainer to student. This means Learningrx can explore alternative channels of distribution or locations, even within a franchisee's territory, using different branding.
Furthermore, Learningrx maintains control over internet marketing and the use of its marks online. Franchisees are restricted from independently marketing on the internet or using domain names similar to Learningrx's marks without prior written approval. Learningrx also has the right to acquire similar businesses, even within a franchisee's territory.
However, franchisees may lose exclusivity if they fail to maintain a Minimum Annual Revenue Quota. The Minimum Annual Revenue Quota starts six months after opening. The amount is Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for any twelve (12) month period thereafter in the Territory. Failure to maintain the Minimum Annual Revenue Quota may result in loss of exclusivity for the territory or the reduction or elimination of the Franchisee's Territory, or the termination of this Agreement, in Franchisor's sole discretion.