factual

What does the Learningrx Franchisee Affiliate waive regarding legal proceedings?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO. FRANCHISEE AFFILIATE HEREBY IRREVOCABLY SUBMITS HIMSELF TO THE JURISDICTION OF THE STATE COURTS OF EL PASO COUNTY, COLORADO OR THE U. S. DISTRICT COURT FOR THE DISTRICT OF COLORADO. FRANCHISEE AFFILIATE HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION. FRANCHISEE AFFILIATE HEREBY AGREES THAT SERVICE OF PROCESS MAY BE MADE UPON HIM IN ANY PROCEEDING RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY COLORADO OR FEDERAL LAW. FRANCHISEE AFFILIATE FURTHER AGREES THAT VENUE FOR ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE IN EITHER EL PASO OR DENVER COUNTY, COLORADO; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION THAT INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF, FRANCHISOR OR FRANCHISEE MAY BRING SUCH ACTION IN ANY COURT IN ANY STATE THAT HAS JURISDICTION.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to the 2025 Learningrx Franchise Disclosure Document, the Franchisee Affiliate waives certain rights related to legal proceedings. Specifically, the Franchisee Affiliate submits to the jurisdiction of Colorado courts and waives questions of personal jurisdiction or venue. This means that the Franchisee Affiliate agrees to be sued in Colorado, regardless of where they are located, and cannot challenge the location of the lawsuit. They also agree that service of process can be made through any means allowed by Colorado or Federal law.

Furthermore, the Franchisee Affiliate agrees that the venue for any legal proceeding related to the agreement will be in either El Paso or Denver County, Colorado. This concentrates legal actions in a specific location, which may be advantageous for Learningrx. However, there is an exception: Learningrx or the franchisee can bring an action that includes injunctive relief or other extraordinary relief in any court in any state that has jurisdiction.

In practical terms, this means a Learningrx Franchisee Affiliate may have to travel to Colorado to defend themselves in a lawsuit, and they cannot argue that Colorado is an inconvenient location. The waiver of personal jurisdiction is a significant concession, as it allows Learningrx to sue the affiliate in a location that may be far from the affiliate's home or place of business. Prospective franchisees should carefully consider the implications of this clause and consult with an attorney to understand their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.