Can a Learningrx franchisee adjust the boundaries of their territory?

According to Learningrx's 2025 Franchise Disclosure Document, once the boundaries of a franchisee's territory are established, the franchisee cannot adjust them without the franchisor's written consent. This applies regardless of whether the population within the territory increases or decreases over time. The territory is designated in Attachment I of the Franchise Agreement.

This restriction means that a Learningrx franchisee's territory is not flexible and cannot be altered by the franchisee to adapt to changing market conditions or population shifts. Any desired changes to the territory require the franchisor's approval, which may or may not be granted. This could limit a franchisee's ability to expand their market reach or adjust to demographic changes within their area.

Furthermore, Learningrx retains specific rights within the franchisee's territory. The franchisor can operate or franchise others to operate Learningrx Centers outside the franchisee's territory, regardless of proximity. They can also use and franchise the use of other trademarks or service marks, except for products provided "trainer to student," in alternative distribution channels or locations, including within the franchisee's territory. This reservation of rights means that Learningrx can engage in activities that might compete with the franchisee's business within their own territory, potentially impacting their revenue and market share.

To maintain the territory, a Learningrx franchisee must meet a Minimum Annual Revenue Quota. This quota starts six months after opening and is based on the population size within the territory. Failure to meet this quota may result in the loss of exclusivity, reduction or elimination of the territory, or even termination of the Franchise Agreement, at Learningrx's discretion. The initial quota is $50,000 for every 100,000 people in the territory, increasing to $75,000 in the second year and $100,000 thereafter. This quota adds another layer of restriction and performance pressure on the franchisee.