What is a Learningrx Franchisee Affiliate prohibited from doing that would harm the goodwill associated with the Licensed Marks, Trade Secrets, or System?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ny time disclose or permit the disclosure of the Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee in the development or operation of a LearningRx Business.
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- Franchisee Affiliate shall surrender any material containing some or all of the Trade Secrets to Franchisee or Franchisor, upon request, or upon termination of employment by Franchisee, or upon conclusion of the use for which such information or material may have been furnished to Franchisee Affiliate.
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- Franchisee Affiliate shall not at any time, directly or indirectly, do any act that would or would likely be injurious or prejudicial to the goodwill associated with the Licensed Marks, the Trade Secrets or the System.
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- All Operations Manuals are loaned by Franchisor to Franchisee for limited purposes only and remain the property of Franchisor and may not be reproduced, in whole or in part, without Franchisor's written consent.
COVENANTS NOT TO COMPETE
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- In order to protect the goodwill and unique qualities of the System and the confidentiality and value of the Trade Secrets, and in consideration for the disclosure to Franchisee Affiliate of the Trade Secrets, Franchisee Affiliate further agrees and covenants that Franchisee Affiliate will not without the prior written consent of Franchisor:
- a. Have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, except with Franchisor's approval;
- b. Perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business wherever operating except with Franchisor's approval;
- c. Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of the LearningRx Business to any competitor;
- d.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Franchisee Affiliate is prohibited from taking any actions that could be detrimental to the goodwill associated with Learningrx's Licensed Marks, Trade Secrets, or System.
Specifically, the Franchisee Affiliate agrees not to have any direct or indirect interest in a Competitive Business without prior written consent from Learningrx. They cannot perform services for a Competitive Business as a director, officer, manager, employee, consultant, representative, or agent, unless Learningrx approves it. The Franchisee Affiliate is also prohibited from diverting or attempting to divert any business, business opportunity, or customer of the Learningrx Business to any competitor.
Furthermore, the Franchisee Affiliate must not make any disparaging remarks or take any action that could reasonably be anticipated to cause loss or damage to the business, business opportunities, affairs, reputation, and goodwill of Learningrx, the System, or the Licensed Marks. This includes actions that could negatively reflect upon Learningrx. A Competitive Business is defined as any business offering or granting franchises or licenses to others to provide learning enhancement courses, programs or products; brain training or cognitive training courses, programs or products; or math and reading training courses, programs, or products.