After the Learningrx franchise is terminated or expires, what non-competition covenants apply to the franchisee?
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, franchisees are subject to certain non-competition covenants after the franchise is terminated or expires. Specifically, for a standard franchise agreement, the franchisee cannot be involved in a competing business for two years. This restriction applies within the franchisee's territory, adjacent counties, within 50 miles of the territory or another LearningRx franchisee, and on the internet or other multi-area marketing channels. These restrictions may be limited by applicable state law.
For Area Developer Agreements, the non-competition covenants after termination or expiration also last for two years. These restrictions prevent involvement in a competing business within the Development Territory, adjacent counties, within 50 miles of the Development Territory or another LearningRx Area Developer or LearningRx Training Center, and on the internet or other multi-area marketing channels. As with the standard franchise agreement, these restrictions are subject to applicable state law.
It is important for prospective franchisees to understand the scope and enforceability of these non-competition agreements, as they can significantly impact their ability to engage in similar business ventures after leaving the Learningrx system. Franchisees should consult with legal counsel to understand how state laws may affect the enforceability of these covenants in their specific location.