After the Learningrx franchise is terminated or expires, what are the non-competition covenants?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 15.01 | Except as restricted by applicable state law, no involvement in competing business for 2 years within Territory, within adjacent counties, 50 miles from Territory or another LearningRx franchisee, on the internet or other Multi-Area marketing channels |
| Provision | Section in Area Developer Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 9.02 | Except as restricted by applicable state law, no involvement in competing business for 2 years within Development Territory, within adjacent counties, 50 miles from Development Territory or another LearningRx Area Developer or LearningRx Training Center, on the internet or other Multi-Area marketing channels |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, both franchisees and area developers are subject to non-competition covenants after the termination or expiration of their agreements. These covenants restrict involvement in competing businesses for a period of two years. For franchisees, the restriction applies within their Territory, adjacent counties, or within 50 miles of their Territory or another Learningrx franchisee. It also extends to online activities or other multi-area marketing channels.
For Area Developers, the non-competition covenant is similar but applies to their Development Territory, adjacent counties, and within 50 miles of their Development Territory or another Learningrx Area Developer or Learningrx Training Center. Like franchisees, Area Developers are also restricted from engaging in competing businesses through the internet or other multi-area marketing channels.
It is important to note that these non-competition covenants are subject to applicable state laws, which may impose further restrictions or limitations. Prospective franchisees and area developers should carefully review Section 15.01 of the Franchise Agreement and Section 9.02 of the Area Developer Agreement, respectively, along with Exhibit E, and consult with legal counsel to understand the full scope and enforceability of these covenants in their specific jurisdiction. Understanding these restrictions is crucial for planning future business activities after the Learningrx franchise agreement ends.